Abstract
Rail privatization in Britain has led to a division of responsibility for investment between Railtrack (infrastructure) and rolling stock leasing companies and operators (rolling stock). However, public bodies - the Office of Passenger Rail Franchising (OPRAF) and the Office of the Rail Regulator (ORR) - still have a considerable influence. This paper describes the new system and offers a critical analysis of the way it is working, with particular reference to the approach to appraisal put forward by OPRAF in its recent appraisal guide.