GWR Class 387 at Reading Station (image taken by me)
You may think that all the train companies in the UK are owned by British people or companies, right? Well, you’re wrong.
26 train companies (I do not count Merseyrail or Island Line (owned by SWR) as a train company) are present in the British rail system. Surprisingly most, if not all of them are owned by foreign corporations or people.
Here are a few examples:
Greater Anglia -> owned by Transport UK, which is owned by the Dutch (Abellio, who is owned by NS / Nederlandse Spoorwegen, meaning Dutch Railways)
Chiltern Railways & CrossCountry -> owned by Arriva -> who is owned by I Squared Capital in America (Arriva used to be formerly owned by Deutsche Bahn (German Railways) until 2021.)
Avanti West Coast -> Owned by First and Trenitalia (national train operator of Italy), First owns more of AWC then Trenitalia though.
West Midlands Trains (who owns LNR and WMR) -> Abellio (Dutch), JR East (Japan Rail) and Mitsui & Co. (Japanese conglomerate)
Why so many foreign companies, you ask…
At the core of it all, foreign companies are drawn to owning UK railways for one main reason: money. The CEOs of these companies, much like Mr. Burns, are driven by the desire for profit. Their main goal is to find ways to make money, and buying up railway services in the UK is one way to do that. They’re not afraid to get involved in mergers, acquisitions, or anything that will bring in the cash.
Currently, most of the UK’s rail services are owned by foreign companies. The only major exception is Great Western Railway (GWR), which is owned by a British company, FirstGroup. This makes it stand out compared to the rest of the rail industry, where many other companies are owned by businesses from other countries.
But why are foreign companies so interested in owning UK railways? The short answer is that it’s a great way to make money.
So, are there any benefits of foreign companies owning railway companies?
- More Investment
Foreign companies can bring in a lot of money to improve the railways. They might introduce new trains, update stations, or use advanced technology to make the system more modern. These improvements can make travel better for everyone. - Better Management and New Ideas
Companies that already run successful rail services in other countries may bring their experience and smart ideas to the UK. This could mean more efficient trains, better customer service, and improved timetables. It can also lead to a better experience for passengers. - Competition Might Lead to Lower Prices
In a privatised system like the UK’s, when different companies compete, they often try to offer the best deal to win passengers. This competition could lead to lower fares or better service. - Job Creation
With more investment in the railway system, there could also be more jobs created in maintenance, customer service, and train operations. This can help local economies and support people who work in the industr
The Risks of Foreign Companies Owning railway companies
- Focus on Profit, Not Service
One of the biggest concerns with foreign-owned railways is that the companies might be more focused on making money than providing good service. If the main goal is to boost profits, passengers might face higher fares or poorer service as a result. - What Happens If the Parent Company Struggles?
Sometimes, the companies that own UK railways face problems back home in their own countries. If a foreign company’s parent company goes through financial trouble, it could affect the UK’s services. This might result in delays, cuts to services, or even a company pulling out of the UK. - Lack of Control Over Our Own Railways
When foreign companies own UK railways, important decisions might be made by people who don’t live here and who may not care about local needs. This could lead to decisions that aren’t in the best interest of the UK or its people. - Profits Going Abroad
Instead of profits from the UK’s railways being spent on improving services here or being invested back into the UK, they could be sent back to the parent company’s home country. This means that money that could be used locally is instead being taken abroad. - Fragmentation of the Railway System
When different companies run different parts of the rail network, it can make things confusing for passengers. If you travel on a train run by one company, your journey might be very different from one run by another company. This could lead to inconsistent service, complicated ticketing, and a disjointed experience. - Too Much Power for Big Foreign Companies
If too many foreign companies dominate the rail market, there’s a risk that one or two companies could control a large part of the network. This might lead to less choice for passengers, higher prices, and lower-quality service in the long run.
So… should we get more British companies to own TOC’s? It might not happen because of the new GBR system coming soon, but if that did not exist, money could go into investment into Network Rail, HS2 and many other rail projects.
If possibly most of the companies weren’t owned by the Dutch, German, French, whatever country that isn’t Britain, HS2 might not have been cancelled.
(updated July 2025 to reflect the new ownership of SWR, now owned by the Department for Transport)
