Written evidence submitted by Heathrow Airport Ltd (RIP0043)

Introduction

The Heathrow Express (HEx) is the largest open access rail operator, serving over 16,000 passengers daily and around 5 million annually. It offers the fastest rail connection to Heathrow with four services per hour from Paddington, competing effectively with the Elizabeth and Piccadilly Lines. Passengers benefit from high-frequency, high-quality express trains, reflected in a 94% satisfaction rate, surpassing other transport options.

Thanks to successful competition, rail use to Heathrow has increased, boosting the public transport share as measured by Heathrow to 45.22% in 2024 (up from 40% in 2019), cutting carbon emissions by 25%. The Heathrow Express also supports the UK’s mission to decarbonise by increasing the number of people using public transport and the mission of economic growth through better connectivity and private investment.

Heathrow Airport Limited (HAL) is providing evidence that open access operators like the Heathrow Express help ensure a stable pipeline for future rail projects and investments. Under the Overarching Agreement with Government, HEx will either remain an open access operator or transition to public ownership in 2028. With record public transport mode share, 94% passenger satisfaction, continued private investment, and a high level of financial contributions to Network Rail, we believe there is a clear mandate for the Heathrow Express to remain an Open Access Operator.

With the potential for more rail links to Heathrow, this option is essential in maintaining a rail investment pipeline.

What have been the barriers to establishing stable and transparent long-term investment pipelines in the past (such as for track enhancements, station upgrades, and rolling stock orders) and how can they be overcome?

Certainty over the future of open access operators is the most important factor in establishing a long-term investment pipeline for the Heathrow Express. We welcome the Government’s plans to provide greater strategic oversight of the railway network whilst leaving open access operators in private ownership. This is a vital policy and will ensure those services which have high passenger satisfaction, high service levels, and add value to the network are allowed to thrive. It is, however, equally important that OAOs remain protected, and that the Heathrow Express is allowed to continue to operate as an OAO to draw in further private investment to UK rail.

Second, because open access operators invest significantly, improving rail links, passenger experiences, and fleet modernisation, timely decisions on applications help deliver these benefits quickly. 

While the OAO track access application process has improved, it remains costly and slow, deterring operators from expanding or new entrants from joining. Delays in approvals create uncertainty. This hinders investment and growth.

Fast approvals would help meet passenger needs and therefore align with the Government’s goals.

b) What funding sources need to be drawn on to plan such pipelines and is an appropriate framework in place for the allocation of funding to different projects?

HAL has invested £1bn in rail to the airport, supporting ORR’s goal of improving rail services, benefiting users. Along with Heathrow’s investment in buses and coaches, HAL’s ownership of HEx has improved the quality, reliability, and volume of public transport.

However, a clearer framework for funding allocation would provide certainty over future investment in the network.

The DfT could clarify its policy on private investment in rail and open access operators, welcoming new rail links to airports for sustainability and economic benefits, and support efforts to realise the benefits of these new links.

c) How could a potential pipeline provide transparency and certainty for industry? For example:

    i. what time period should it cover?

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    ii. what level of project specification should it include?

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    iii. what commitments from Government should it include in both the short and long-term?

Heathrow is the largest employment site in the UK and world’s best-connected airport, with access to 95% of the global economy via direct flights. Heathrow is well connected by major roads (M25, M4, M1, M3, M40) and has the UK’s busiest coach station. Our extensive bus, coach, and rail networks provide local and national connections, with plans for two additional rail lines. 

We need Government commitments for these two key rail lines to reduce road congestion, improve air quality, and lower carbon emissions while meeting the future demands of passengers as the airport modernises and expands:

1. Western Rail: The Western Rail Link to Heathrow project would connect the airport to the Great Western Mainline, offering direct access for passengers from the south coast, south-west, south Wales, and the west Midlands. This would cut congestion on major roads and reduce carbon emissions by 30 million road miles annually.
2. Southern Rail: The Southern Access to Heathrow project would provide a direct rail link from Surrey, Hampshire, and south London to Heathrow, improving transport options and reducing reliance on less sustainable modes. It would also transform connectivity to areas that are typically under-supplied in public transport links, adding valuable commuter and passenger links to Heathrow and central London.

These projects will deliver additional connectivity and resilience to Old Oak Common Station and HS2.

These projects will boost the UK economy by hundreds of millions, especially in the Thames Valley, South, South West, and Wales, creating jobs during construction and after completion.

    iv. what budgets and sources of public funding should it encompass?

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    v. how should it engage private investment?

The Department for Transport should clarify its policy on private investment in rail infrastructure, prioritising new rail links to airports for sustainability and economic benefits. This will therefore help private investment to have a greater role in the determination of and prioritisation of projects within the pipeline.

d) What role should the industry play in the development of this pipeline and how should Government engage with industry in its delivery?

We welcome any opportunities to work with the Government on rail investment.

Heathrow invests £1bn annually in asset maintenance, passenger upgrades, surface access, decarbonisation, and security. We are well placed to understand how future rail projects can integrate with other forms of local public transport to significantly improve the passenger experience from beginning to end.

e) What role would a long-term rail investment pipeline play in developing the railway supply workforce?

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f) How should a pipeline interact with the Government’s development of a wider long term rail strategy, rolling stock strategy, infrastructure strategy, and the Invest 35 industrial strategy?

Large public infrastructure projects, like airport growth, are key to achieving the Industrial Strategy’s goals of economic growth, job creation, investment, and improved living standards.

We support the DfT’s reform of its project appraisal system to ensure projects deliver value, jobs, better education access, and healthier communities. We believe project outcomes should also consider how major initiatives, like new rail links to airports, contribute to national economic growth, including in the construction phase.

February 2025