Network Rail says more trains are running on time

The not-for-profit company recorded an operating loss of �95m which was mainly due to the increased cost of maintenance and track renewal.

But Network Rail, which took over from private firm Railtrack last year, said its performance was improving.

Some 82.2% of trains were running on time, compared with 81.8% in the first half of 2002, the firm said.

More investment

Network Rail said the improvement came despite major delays caused by the heat-related speed restrictions imposed on the network during the summer and power blackouts in parts of Britain in August.

The company added that it was raising its investment in the country's rail infrastructure, with maintenance spending increasing to �685m from �583m.

Last month, Network Rail said it planned to take all maintenance in-house to cut costs and improve efficiency.

Some of Britain's biggest engineering companies, including Balfour Beatty, Carillion, Amey and Jarvis - which is at the centre of an inquiry into the Potters Bar rail crash - had previously been responsible for the work.

Rail shake-up

Jarvis had already said it was pulling out of rail maintenance, citing "reputational problems" and lower than expected profits.

The decision to take maintenance in-house will more than double Network Rail's workforce from 14,500 to around 32,500, the company said.

Rail regulator Tom Winsor last month called for extra public money to be pumped into the network - attracting a cautious response from the government.