Railway nationalization
Encyclopedia
Railway nationalization refers to the act of nationalizing
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 rail transport
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...

 assets, taking them into public ownership. Several countries have nationalized part or all of their railway system at different times.

More recently, the international trend has been towards privatization. In some areas, notably Great Britain, resultant problems have led back to a more mixed solution.

National characteristics influenced the structures under which their respective rail networks originally developed. Some national railways were always under direct State management, some were State-planned but privately operated (as in France), others were wholly private enterprises lightly regulated (as in Great Britain, Ireland and Spain). Nationalisation was therefore a bolder step to take in some countries than in others. While ideology has played a role, so too has the need for systematic reconstruction of vital infrastructure devastated by war, often following a period of State control over private companies initiated during the conflict.

Argentina

The Argentine railways
Rail transport in Argentina
The Argentine railway network comprised of track at the end of the Second World War and was, in its time, one of the most extensive and prosperous in South America. However, with the increase in highway construction, there followed a sharp decline in railway profitability, leading to the break-up...

 were largely developed with British and French capital and were nationalised
Railway Nationalisation in Argentina
In 1948, during President Juan Perón’s first term of office, the seven British-owned and three French-owned railway companies then operating in Argentina, were purchased by the state...

 in 1948 during President Peron
Juan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...

's first term of office.

Canada

In Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

, the government took control of several railways that fell into bankruptcy following World War I, including the Canadian Northern Railway
Canadian Northern Railway
The Canadian Northern Railway is a historic Canadian transcontinental railway. At its demise in 1923, when it was merged into the Canadian National Railway , the CNoR owned a main line between Quebec City and Vancouver via Ottawa, Winnipeg, and Edmonton.-Manitoba beginnings:CNoR had its start in...

, the Grand Trunk Pacific Railway
Grand Trunk Pacific Railway
The Grand Trunk Pacific Railway was a historical Canadian railway.A wholly owned subsidiary of the Grand Trunk Railway , the GTPR was constructed by GTR using loans provided by the Government of Canada. The company was formed in 1903 with a mandate to build west from Winnipeg, Manitoba to the...

, and the Grand Trunk Railway
Grand Trunk Railway
The Grand Trunk Railway was a railway system which operated in the Canadian provinces of Quebec and Ontario, as well as the American states of Connecticut, Maine, Michigan, Massachusetts, New Hampshire, and Vermont. The railway was operated from headquarters in Montreal, Quebec; however, corporate...

. On December 20, 1918, the federal government created the Canadian National Railway
Canadian National Railway
The Canadian National Railway Company is a Canadian Class I railway headquartered in Montreal, Quebec. CN's slogan is "North America's Railroad"....

s (CNR), and placed the companies that it took control of under the CNR. Canadian National Railway was privatized in 1995.

France

In 1878, the French government took over ten small failing railway companies and established the Chemin de Fer de l'État
Chemin de Fer de l'État
The Chemins de fer de l'État , often referred to in France as the réseau de l'État , was an early French railway company.-History:...

. The company absorbed the Chemins de Fer de l'Ouest
Chemins de Fer de l'Ouest
The Compagnie des chemins de fer de l'Ouest , often referred to simply as L'Ouest or Ouest, was an early French railway company.- Birth of the company :...

 in 1908.
In 1938, the French state took 51% ownership of the newly formed SNCF
SNCF
The SNCF , is France's national state-owned railway company. SNCF operates the country's national rail services, including the TGV, France's high-speed rail network...

 merging of France's five main railways (100% in 1982).

Germany

The earliest railways in the German states were often run by private entrepreneurs. Starting in the late 19th century, the railways were recognised as important to the military, and operation often was taken over by the state, especially in Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...

 and Bavaria
Bavaria
Bavaria, formally the Free State of Bavaria is a state of Germany, located in the southeast of Germany. With an area of , it is the largest state by area, forming almost 20% of the total land area of Germany...

. After World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, the German Reich
Reich
Reich is a German word cognate with the English rich, but also used to designate an empire, realm, or nation. The qualitative connotation from the German is " sovereign state." It is the word traditionally used for a variety of sovereign entities, including Germany in many periods of its history...

 took over control of the state railways of Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...

, Bavaria
Bavaria
Bavaria, formally the Free State of Bavaria is a state of Germany, located in the southeast of Germany. With an area of , it is the largest state by area, forming almost 20% of the total land area of Germany...

, Saxony
Saxony
The Free State of Saxony is a landlocked state of Germany, contingent with Brandenburg, Saxony Anhalt, Thuringia, Bavaria, the Czech Republic and Poland. It is the tenth-largest German state in area, with of Germany's sixteen states....

, Württemberg
Württemberg
Württemberg , formerly known as Wirtemberg or Wurtemberg, is an area and a former state in southwestern Germany, including parts of the regions Swabia and Franconia....

, Baden
Baden
Baden is a historical state on the east bank of the Rhine in the southwest of Germany, now the western part of the Baden-Württemberg of Germany....

, Mecklenburg-Schwerin
Mecklenburg-Schwerin
Mecklenburg-Schwerin was a duchy in northern Germany created in 1348, when Albert II of Mecklenburg and his younger brother John were raised to Dukes of Mecklenburg by King Charles IV...

, Hesse
Hesse
Hesse or Hessia is both a cultural region of Germany and the name of an individual German state.* The cultural region of Hesse includes both the State of Hesse and the area known as Rhenish Hesse in the neighbouring Rhineland-Palatinate state...

 and Oldenburg
Oldenburg
Oldenburg is an independent city in Lower Saxony, Germany. It is situated in the western part of the state between the cities of Bremen and Groningen, Netherlands, at the Hunte river. It has a population of 160,279 which makes it the fourth biggest city in Lower Saxony after Hanover, Braunschweig...

. The individual railways were merged into the Deutsche Reichsbahn-Gesellschaft
Deutsche Reichsbahn-Gesellschaft
The Deutsche Reichsbahn – was the name of the German national railway created from the railways of the individual states of the German Empire following the end of World War I....

 in February 1924. Due to impending war reparations, the DRG was a private company, but shares were bought by the Reich in 1937, effectively nationalising the corporation. In World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 the DR assimilated a great number of railway companies in the German-occupied territories as well as several smaller, previously privately owned lines in Germany. Post-World War II, after being under Allied administration between 1945 and 1949, the DR was split up into the Deutsche Bundesbahn
Deutsche Bundesbahn
The Deutsche Bundesbahn or DB was formed as the state railway of the newly established Federal Republic of Germany on September 7, 1949 as a successor of the Deutsche Reichsbahn-Gesellschaft '...

 and Deutsche Reichsbahn of the GDR
Deutsche Reichsbahn of the GDR
The Deutsche Reichsbahn or DR was the operating name of state owned railways in the German Democratic Republic ....

, both state-owned. Private railways continued to exist in the West German realm of the DB, but DB and DR accounted for most of the rail traffic in post-war Germany. After German reunification
German reunification
German reunification was the process in 1990 in which the German Democratic Republic joined the Federal Republic of Germany , and when Berlin reunited into a single city, as provided by its then Grundgesetz constitution Article 23. The start of this process is commonly referred by Germans as die...

, DB and DR became Deutsche Bahn AG in 1994. Whilst DB AG is a public limited company, all its shares are presently owned by the government of the Federal Republic of Germany. DB AG is now facing stiff competition in the freight and short-distance passenger sector, although they still hold a quasi-monopoly in the long-distance passenger sector. The IPO, originally planned for 2008, has been postponed.

Great Britain

In 1914, the railways were taken into Government control due to World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, but were returned to the original owners in 1921, three years after the war had ended. Starting in 1923, there were four major British railway companies: The Great Western Railway
Great Western Railway
The Great Western Railway was a British railway company that linked London with the south-west and west of England and most of Wales. It was founded in 1833, received its enabling Act of Parliament in 1835 and ran its first trains in 1838...

, the Southern Railway, the London and North Eastern Railway
London and North Eastern Railway
The London and North Eastern Railway was the second-largest of the "Big Four" railway companies created by the Railways Act 1921 in Britain...

, and the London, Midland and Scottish Railway
London, Midland and Scottish Railway
The London Midland and Scottish Railway was a British railway company. It was formed on 1 January 1923 under the Railways Act of 1921, which required the grouping of over 120 separate railway companies into just four...

. In Britain
United 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...

 during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, the railways were taken into State control. They were heavily damaged by enemy attacks and were run down aiding the war effort. After the war, the Transport Act 1947
Transport Act 1947
The Transport Act 1947 is an Act of the Parliament of the United Kingdom. Under it the railways, long-distance road haulage and various other types of transport were acquired by the state and handed over to a new British Transport Commission for operation...

 provided for nationalising the four major railways. On January 1, 1948, the railways were nationalized and British Railways was created, under the overall management of the British Transport Commission
British Transport Commission
The British Transport Commission was created by Clement Attlee's post-war Labour government as a part of its nationalisation programme, to oversee railways, canals and road freight transport in Great Britain...

, later the British Railways Board
British Railways Board
The British Railways Board was a nationalised industry in the United Kingdom that existed from 1962 to 2001. From its foundation until 1997, it was responsible for most railway services in Great Britain, trading under the brand names British Railways and, from 1965, British Rail...

. By the 1980s, it was one of the few profitable state railway companies in the world.

The privatisation of British Rail
Privatisation of British Rail
The privatisation of British Rail was set in motion when the Conservative government enacted, on 19 January 1993, the British Coal and British Rail Act 1993 . This enabled the relevant Secretary of State to issue directions to the relevant Board...

 occurred between 1994 and 1997, wherein a complicated privatisation took place to a series of private sector operators under contracts. Overall, over 100 companies took over from British Rail. In 2001 the track operator 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...

 plc went bankrupt; it was reconstituted and re-named as 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...

 Infrastructure Ltd., a private company with no legal owner but effectively government-controlled via its constitution and financing. The Government still invests heavily in the railways, such as paying for extra rolling stock. Government spending on the railways has increased substantially compared to when the railways were in state control.

Ireland

Railways in Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...

 were nationalised in the 1940s under the Ulster Transport Authority
Ulster Transport Authority
The Ulster Transport Authority ran rail and bus transport in Northern Ireland from 1948 until 1966.-Formation and consolidation:The UTA was formed by the Transport Act 1948, which merged the Northern Ireland Road Transport Board and the Belfast and County Down Railway...

 (UTA). The former LMS lines managed by the Northern Counties Committee
Northern Counties Committee
The Northern Counties Committee was a railway that served the north-east of Ireland. It was built to Irish gauge but later acquired a number of narrow gauge lines...

, nationalised by the Westminster government, were sold by the British Transport Commission to the UTA in 1949. In the Republic of Ireland, Coras Iompair Éireann
Córas Iompair Éireann
Córas Iompair Éireann , or CIÉ, is a statutory corporation of the Irish state, answerable to the Irish Government and responsible for most public transport in the Republic of Ireland and, jointly with its Northern Ireland counterpart, the Northern Ireland Transport Holding Company, between the...

 was formed from the merger of the Great Southern Railway
Great Southern Railway
Great Southern Railway can refer to:* Great Southern Railway - tourism and rail operator* Great Southern Railway - Former railway serving the South Gippsland region in Victoria, Australia...

 with the Dublin United Transport Company
Dublin United Transport Company
The Dublin United Transport Company operated trams and buses in Dublin, Ireland until 1945. Following legislation in the Oireachtas , the DUTC and the Great Southern Railways were vested in the newly formed Coras Iompair Éireann in 1945.-Formation:The DUTC was formed by the merging of several of...

 on 1 January 1945. Initially a private company limited by shares
Private company limited by shares
A private company limited by shares, usually called a private limited company , is a type of company incorporated under the laws of England and Wales, Scotland, that of certain Commonwealth countries and the Republic of Ireland...

, CIÉ was nationalised in 1950. The final privately owned mainline railway company on the island, the Great Northern Railway
Great Northern Railway (Ireland)
The Great Northern Railway was an Irish gauge railway company in Ireland.The Great Northern was formed in 1876 by a merger of the Irish North Western Railway , Northern Railway of Ireland, and Ulster Railway. The Ulster Railway was the GNRI's oldest constituent, having opened between Belfast and...

, was nationalised under joint control of the Republic of Ireland and Northern Ireland governments in 1953. It was wound up in 1958 and its assets split between CIÉ and the UTA.

Railways in both parts of Ireland remain nationalised under CIÉ, and the UTA's successor, the Northern Ireland Transport Holding Company
Northern Ireland Transport Holding Company
The Northern Ireland Transport Holding Company is a government-owned body which was established in 1967 to take over the railway and bus services of the Ulster Transport Authority , namely Northern Ireland Railways and Ulsterbus...

. Operations have now been delegated to railway operating subsidiaries of both bodies - Iarnród Éireann - Irish Rail
Iarnród Éireann
Iarnród Éireann is the national railway system operator of Ireland. Established on 2 February 1987, it is a subsidiary of Córas Iompair Éireann . It operates all internal intercity, commuter and freight railway services in the Republic of Ireland, and, jointly with Northern Ireland Railways, the...

 in the Republic, and Northern Ireland Railways Company Limited in Northern Ireland. Together, they run the Dublin - Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...

 railway line as Enterprise.

Italy

Following unification, the Italian Government entrusted the railways to five regional concessionaires. The arrangement did not work well and, long before it was due to expire, the railways were nationalised in 1905. The nationalised operator is known as Ferrovie dello Stato
Ferrovie dello Stato
Ferrovie dello Stato is a government-owned holding which manage infrastructure and service on the Italian rail network. The subsidiary Trenitalia is the main rail operator in Italy.-Organization:Ferrovie dello Stato subsidiaries are:...

.

See also History of railways in Italy
History of Railways in Italy
The railways in Italy are one of the most important infrastructure in the country, with c. of track.-Origins:Railways were introduced in Italy when it was still a divided country....


Japan

In Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, the Railway Nationalization Act
Railway Nationalization Act
The brought many of Japan's private railway lines under national control. The Diet of Japan promulgated the Act on March 31, 1906. The Act was repealed by Article 110 of the Japan National Railway Reform Act of 1988, which formed the modern Japan Railways Group....

 of 1906 brought most of the country's private railway lines under public control. Between 1906 and 1907, 2812 miles (4,525.5 km) of track were purchased from seventeen private railway companies. The national railway network grew to about 4400 miles (7,081.1 km) of track, and private railways were relegated to providing local and regional services.

Spain

After years of declining profitability, the national rail network was devastated by the Spanish Civil War
Spanish Civil War
The Spanish Civil WarAlso known as The Crusade among Nationalists, the Fourth Carlist War among Carlists, and The Rebellion or Uprising among Republicans. was a major conflict fought in Spain from 17 July 1936 to 1 April 1939...

. In 1941, the broad gauge railways were nationalised, as RENFE
RENFE
Renfe Operadora is the state-owned company which operates freight and passenger trains on the 1668-mm "Iberian gauge" and 1435-mm "European gauge" networks of the Spanish national railway infrastructure company ADIF .- History :The name RENFE is derived from that of the former Spanish National...

. The narrow gauge railways were also later nationalised; some of these have since been transferred to the autonomous regional governments where contained within a single region.

United States

After the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 entered World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

 in 1917, the country's railways proved inadequate to the task of supplying the nation's war effort
War effort
In politics and military planning, a war effort refers to a coordinated mobilization of society's resources—both industrial and human—towards the support of a military force...

. On December 26, 1917, U.S. President Woodrow Wilson
Woodrow Wilson
Thomas Woodrow Wilson was the 28th President of the United States, from 1913 to 1921. A leader of the Progressive Movement, he served as President of Princeton University from 1902 to 1910, and then as the Governor of New Jersey from 1911 to 1913...

 nationalized most American railways under the Federal Possession and Control Act, creating the United States Railroad Administration
United States Railroad Administration
The United States Railroad Administration was the name of the nationalized railroad system of the United States between 1917 and 1920. It was possibly the largest American experiment with nationalization, and was undertaken against a background of war emergency.- Background :On April 6, 1917, the...

 (USRA), which took control of the railways on December 28, 1917. The USRA introduced several reforms to increase efficiency and reduce costs, including standardizing rolling stock
Railroad car
A railroad car or railway vehicle , also known as a bogie in Indian English, is a vehicle on a rail transport system that is used for the carrying of cargo or passengers. Cars can be coupled together into a train and hauled by one or more locomotives...

 and steam locomotive
Steam locomotive
A steam locomotive is a railway locomotive that produces its power through a steam engine. These locomotives are fueled by burning some combustible material, usually coal, wood or oil, to produce steam in a boiler, which drives the steam engine...

designs. The war ended in 1918, and on March 1, 1920, the railways were handed back to their original owners.
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