Higher borrowing costs, built-in profit margins, and now a big bill to end contracts have taught Britons privatization is nothing but a bad deal.
In an effort to stop the flow of tax dollars to private companies, Network Rail has started to bring its day-to-day track work back in-house. In one case, it has agreed to pay 17.6 million to Carillion to cut short the contract and buy out its assets. Carillion is also involved in P3 hospitals and privatized hospital housekeeping in the UK and in Canada.
Network Rail is expected to buy out other companies as its re-nationalization plan continues. Despite the high costs, its an investment worth making. Private maintenance costs the agency 100 million more than to do the work in-house. And in the first six months since it began to bring the work back in-house, delays arising from problems with the infrastructure have been cut by a third.