(30 May 2014, 2:36 pm)eezypeazy wrote I don't think the 'fragmented market' has anything to do with it, really. It's the cost of the 'step change' that provides the limiting factor. Sticking with Hexham as an example, adding an extra train an hour would need the line to be resignalled to provide the train path (even if the line wasn't to be electrified); but 3 tph would be a much more attractive service than two tph. Even if the entire public transport system was nationalised, there'd still be a huge investment cost; or, if the railways had been fully privatised (rather than this 'half way house' we have at the moment), then the private sector might have been incentivised to provide the necessary capital. Sadly, 'micro-management' of the railways by the DfT seems to produce the worst of both worlds...

But surely that example shows the problems with the fragmented market - you have just highlighted a number of points that helps to make up the fragmented system; such as your 'half way house', the lack of incentives for the private sector to improve infrastructure and the involvement of the DfT...

If you look at the example I gave in the previous post.
Network Rail will not spend money on improving the infrastructure to improve the frequency, without seeing an increase in demand for services along the line.
The bus companies will not feed in to the network, unless they see a demand, throwing the onus back onto Network Rail and the toc's.

Forget anything to do with signalling restraints that exist currently, but imagine if Go ahead adds to its railway network and wins the Northern Rail franchise.
What do you think would happen to bus services that shadow the Tyne Valley or Durham Coast lines?
I would put my last pound on in Fozz's bookies, that we would see further integration at a number (not all) of the key stations along the routes, resulting in greater passenger numbers on both bus and rail.

You may disagree...