Arrangements between railroads
Encyclopedia
Railway companies
can interact with and control others in many ways. These relationships can be complicated by bankruptcies.
. The owner of the spur line may contract with the owner of the main line for operation of the contractee's trains, either as a separate line or as a branch with through service. This agreement may continue as the former railroad expands, or may be temporary until the line is completed.
If the operating company goes bankrupt, the contract ends and the operated company must operate itself.
results in the former railroad (the lessee) paying the latter company (the lessor) a certain yearly rate, based on maintenance, profit, or overhead, in order to have full control of the lessor's lines, including operation.
If the lessee goes bankrupt, the lessor is released from the lease.
of another one in order to control it. Sometimes a bridge line
, a railroad that has a majority of traffic coming from points not on its line, is owned equally by the companies that use it (via trackage rights).
Stock ownership does not automatically result in merge of operations, merely in friendly policies towards each other. Operating and leasing agreements typically require a more stringent approval process through the regulating body.
If the owned company goes bankrupt, its stock is worthless, and the owner no longer controls it (unless it buys it back at auction).
Trackage rights can be temporary or long-term as needed. Temporary rights agreements are typically made when some kind of disaster
affects one railroad while a parallel railroad line is fully operational. The parallel railroad will often grant temporary rights to the affected railroad until the problem is resolved. Long-term agreements can be made to allow competing railroads access to potentially profitable shippers or to act as a bridge route between otherwise disconnected sections of another railroad. A union station
typically involves trackage rights; the company that owns the station and associated trackage is typically owned in part by the railroads that use it, which operate over it by trackage rights. In the United States
, all such agreements are filed with the Surface Transportation Board
and are available as a matter of public record.
is similar to one of trackage rights, but the railroad that owns the line operates the power for the cars of the latter company.
, it was not clear whether railroads were going to be run like turnpikes
, in which any paying customer could use the road. The Seekonk Branch Railroad in East Providence, Rhode Island
(then part of Seekonk, Massachusetts
) tested this by in 1836 building a short branch of the Boston and Providence Railroad to their own dock and using the full line of the B&P. Massachusetts passed a law prohibiting this, and the B&P bought the branch in 1839.
The Stockton and Darlington Railway
of 1825 opened with mostly horse-drawn trains, with anyone able to operate their own trains on a turnpike basis.
The Liverpool and Manchester Railway
of 1830 opened with purely steam locomotive haulage, and the need for greater co-ordination meant that the railway had to operate the trains. Private wagons hauled by company trains were tolerated. This set the pattern for the next century or more.
railway network was nationalized as British Rail
for both political and practical reasons. Internal industrial operations and some minor lines were excluded from the process. Where industrial lines met the railway network proper trains would be transferred from the industrial operator to British Rail control with non-British Rail locomotives and drivers never being permitted onto the British Rail network. Arrangements existed whereby non-British Rail operators could own rolling stock. This changed in 1986 when, in a very different political climate Foster Yeoman
were able to obtain the right to run their own trains onto the British Rail network providing British Rail drivers were used.
In 1997 the British Railways network was privatized as a single company Railtrack
, and after this proved a total failure as a non-profit company Network Rail
. Multiple companies hold rights to operate trains on the national network either as for-profit operators or government aided passenger franchises. A formal safety process exists for gaining access along with driver and equipment requirements as well as a pricing scheme. Any organisation meeting all these requirements can become a railway operator and access the national network.
As well as holding access rights to the national network (and in some cases internationally via the channel tunnel) many of the freight operators have agreements permitted them to access private networks operated by industries and ports, and in some cases also onto heritage railways, several of which now also carry small amounts of commercial freight traffic.
Passenger operators also have agreements with some of the heritage railways allow them to run special trains to connect with heritage railway events. Similarly heritage railway operators and railtour operators have reached arrangements to access the national network and run heritage trains, often steam powered, to and from the national rail network. As of 2007 this has extended to regular summer timetabled services on both the Stratford Upon Avon line in the midlands and from Grosmont, North Yorkshire on the North Yorkshire Moors Railway
to Whitby
on the national rail network.
Railway company
A railway company or railroad company is an entity that operates a railroad track and/or trains. Such a company can either be private or public...
can interact with and control others in many ways. These relationships can be complicated by bankruptcies.
Operating
Often, when a railroad first opens, it is only a short spur of a main lineMain line (railway)
The Mainline or Main line of a railway is a track that is used for through trains or is the principal artery of the system from which branch lines, yards, sidings and spurs are connected....
. The owner of the spur line may contract with the owner of the main line for operation of the contractee's trains, either as a separate line or as a branch with through service. This agreement may continue as the former railroad expands, or may be temporary until the line is completed.
If the operating company goes bankrupt, the contract ends and the operated company must operate itself.
Leasing
A major railroad may lease a connecting line from another company, usually the latter company's full system. A typical leaseLease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
results in the former railroad (the lessee) paying the latter company (the lessor) a certain yearly rate, based on maintenance, profit, or overhead, in order to have full control of the lessor's lines, including operation.
If the lessee goes bankrupt, the lessor is released from the lease.
Stock ownership
Most railroad companies are publicly traded with stocks. As the stockholders control the company, one railroad company can buy a majority of stockStock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
of another one in order to control it. Sometimes a bridge line
Bridge line
A bridge line or bridge route is a rail carrier tasked primarily with moving traffic from one major carrier to another . Bridge lines often were located between two major cities, connecting rail carriers that served those cities and interchanging their cars...
, a railroad that has a majority of traffic coming from points not on its line, is owned equally by the companies that use it (via trackage rights).
Stock ownership does not automatically result in merge of operations, merely in friendly policies towards each other. Operating and leasing agreements typically require a more stringent approval process through the regulating body.
If the owned company goes bankrupt, its stock is worthless, and the owner no longer controls it (unless it buys it back at auction).
Consolidation
Consolidation happens when two railroad companies are consolidated. It is often the last step in an arrangement between two railroads, and is hard to undo, except in the case of bankruptcy, when different parts of the railroad may be sold to different buyers at auction.Trackage rights
Trackage rights (or running rights, or running powers (UK)) is an arrangement where the company that owns the line retains all rights, but allows another company to operate over certain sections of its track. The agreement may specify whether the latter company can serve customers on the line. In some cases, the former company may opt to not run any trains over the line but still own it; this can also be done via a partial lease. Overhead trackage rights or incidental trackage rights refers to the case of the latter company not being allowed to serve customers along the line. It is only granted the right to "overfly" the right-of-way of the lessor, using the tracks of the lessor's railroad.Trackage rights can be temporary or long-term as needed. Temporary rights agreements are typically made when some kind of disaster
Train wreck
A train wreck or train crash is a type of disaster involving one or more trains. Train wrecks often occur as a result of miscommunication, as when a moving train meets another train on the same track; or an accident, such as when a train wheel jumps off a track in a derailment; or when a boiler...
affects one railroad while a parallel railroad line is fully operational. The parallel railroad will often grant temporary rights to the affected railroad until the problem is resolved. Long-term agreements can be made to allow competing railroads access to potentially profitable shippers or to act as a bridge route between otherwise disconnected sections of another railroad. A union station
Union station
A union station is the term used for a train station where tracks and facilities are shared by two or more railway companies, allowing passengers to connect conveniently between them...
typically involves trackage rights; the company that owns the station and associated trackage is typically owned in part by the railroads that use it, which operate over it by trackage rights. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, all such agreements are filed with the Surface Transportation Board
Surface Transportation Board
The Surface Transportation Board of the United States is a bipartisan, decisionally-independent adjudicatory body organizationally housed within the U.S. Department of Transportation. The STB was established in 1996 to assume some of the regulatory functions that had been administered by the...
and are available as a matter of public record.
Haulage agreement
A haulage agreementHaulage
Haulage may refer to:* The business of being a haulier or hauler , also called haulage contractor, common carrier, contract carrier, or private carrier, in other words of transporting goods by road or rail for other companies or one's own company.* The horizontal transport of ore, coal, supplies,...
is similar to one of trackage rights, but the railroad that owns the line operates the power for the cars of the latter company.
History
Originally, at least in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, it was not clear whether railroads were going to be run like turnpikes
Toll road
A toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...
, in which any paying customer could use the road. The Seekonk Branch Railroad in East Providence, Rhode Island
East Providence, Rhode Island
East Providence is a city in Providence County, Rhode Island, United States. The population was 47,037 at the 2010 census, making it the fifth largest city in the state.-Geography:East Providence is located at ....
(then part of Seekonk, Massachusetts
Seekonk, Massachusetts
Seekonk is a town in Bristol County, Massachusetts, United States, on the Massachusetts border. It was incorporated in 1812 from the western half of Rehoboth. The population was 13,722 at the 2010 census. Until 1862, the town of Seekonk also included what is now the City of East Providence, Rhode...
) tested this by in 1836 building a short branch of the Boston and Providence Railroad to their own dock and using the full line of the B&P. Massachusetts passed a law prohibiting this, and the B&P bought the branch in 1839.
Earliest Railways
The Swansea and Mumbles Railway, the world's first passenger railway service operated in the same manner as turnpike roads. When it opened in 1807 anyone with a suitable horse-drawn waggon could use the line in exchange for paying a toll. The railway operated in this manner until passenger services ceased in 1826 or 1827 due to the construction of a turnpike road parallel to the railway.The Stockton and Darlington Railway
Stockton and Darlington Railway
The Stockton and Darlington Railway , which opened in 1825, was the world's first publicly subscribed passenger railway. It was 26 miles long, and was built in north-eastern England between Witton Park and Stockton-on-Tees via Darlington, and connected to several collieries near Shildon...
of 1825 opened with mostly horse-drawn trains, with anyone able to operate their own trains on a turnpike basis.
The Liverpool and Manchester Railway
Liverpool and Manchester Railway
The Liverpool and Manchester Railway was the world's first inter-city passenger railway in which all the trains were timetabled and were hauled for most of the distance solely by steam locomotives. The line opened on 15 September 1830 and ran between the cities of Liverpool and Manchester in North...
of 1830 opened with purely steam locomotive haulage, and the need for greater co-ordination meant that the railway had to operate the trains. Private wagons hauled by company trains were tolerated. This set the pattern for the next century or more.
British Rail
After 1948 the majority of the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
railway network was nationalized as British Rail
British Rail
British Railways , which from 1965 traded as British Rail, was the operator of most of the rail transport in Great Britain between 1948 and 1997. It was formed from the nationalisation of the "Big Four" British railway companies and lasted until the gradual privatisation of British Rail, in stages...
for both political and practical reasons. Internal industrial operations and some minor lines were excluded from the process. Where industrial lines met the railway network proper trains would be transferred from the industrial operator to British Rail control with non-British Rail locomotives and drivers never being permitted onto the British Rail network. Arrangements existed whereby non-British Rail operators could own rolling stock. This changed in 1986 when, in a very different political climate Foster Yeoman
Foster Yeoman
Foster Yeoman Limited, based in the United Kingdom, is one of Europe's largest quarrying and asphalt companies, owned by Swiss construction materials conglomerate Holcim.-Company history:...
were able to obtain the right to run their own trains onto the British Rail network providing British Rail drivers were used.
In 1997 the British Railways network was privatized as a single company Railtrack
Railtrack
Railtrack was a group of companies that owned the track, signalling, tunnels, bridges, level crossings and all but a handful of the stations of the British railway system from its formation in April 1994 until 2002...
, and after this proved a total failure as a non-profit company Network Rail
Network Rail
Network Rail is the government-created owner and operator of most of the rail infrastructure in Great Britain .; it is not responsible for railway infrastructure in Northern Ireland...
. Multiple companies hold rights to operate trains on the national network either as for-profit operators or government aided passenger franchises. A formal safety process exists for gaining access along with driver and equipment requirements as well as a pricing scheme. Any organisation meeting all these requirements can become a railway operator and access the national network.
As well as holding access rights to the national network (and in some cases internationally via the channel tunnel) many of the freight operators have agreements permitted them to access private networks operated by industries and ports, and in some cases also onto heritage railways, several of which now also carry small amounts of commercial freight traffic.
Passenger operators also have agreements with some of the heritage railways allow them to run special trains to connect with heritage railway events. Similarly heritage railway operators and railtour operators have reached arrangements to access the national network and run heritage trains, often steam powered, to and from the national rail network. As of 2007 this has extended to regular summer timetabled services on both the Stratford Upon Avon line in the midlands and from Grosmont, North Yorkshire on the North Yorkshire Moors Railway
North Yorkshire Moors Railway
The North Yorkshire Moors Railway is a heritage railway in North Yorkshire, England. First opened in 1836 as the Whitby and Pickering Railway, the railway was planned in 1831 by George Stephenson as a means of opening up trade routes inland from the then important seaport of Whitby. The line...
to Whitby
Whitby
Whitby is a seaside town, port and civil parish in the Scarborough borough of North Yorkshire, England. Situated on the east coast of Yorkshire at the mouth of the River Esk, Whitby has a combined maritime, mineral and tourist heritage, and is home to the ruins of Whitby Abbey where Caedmon, the...
on the national rail network.