Network Rail announces £16m compensation package - CILT(UK)
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Network Rail announces £16m compensation package

22 April 2014/Categories: Industry News


Network Rail is to pay compensation to train and freight operators affected by the Dawlish line closure.


The organisation stated the amount was likely to be between £15-£16 million, claiming the figure was based on an assessment of lost revenue. The track was reopened on April 4th after it was damaged by extreme weather back in February.


According to the organisation, the decision to award the money was taken because trains were not able to run through the Dawlish station as a result of the line closure. A spokesman for Network Rail commented that the system of paying out for loss of service gave operators a clear incentive to keep their vehicles running.


He added: "Train and freight operating companies pay large sums to use the rails we own and maintain, and if those routes are not available then they receive compensation."


Meanwhile, First Great Western stated its own remuneration package was still under discussion. It advised the funds would cover the additional replacement buses that were used while the line was out of commission and the movement of staff and trains to other locations as a result of the disruption.

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