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Railtrack wins subway deal
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October 15, 1999: 10:31 a.m. ET
U.K. rail firm may run part of London system; safety record questioned
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LONDON (CNNfn) - U.K. railroad operator Railtrack signed an agreement Friday that could result in it operating some of London's subway system, just days after coming under fire for its safety record in running the country's railroad network.
Railtrack said it had reached a preliminary agreement to operate three of London's subway lines. The government plans to partly privatize the whole network in a bid to attract private investment to repair the crumbling system.
Railtrack shares have tumbled 13 percent since the fatal rail crash near London's Paddington station Oct. 5. The company has been lambasted for under-investing in the U.K. rail network and allowing safety standards to slip.
However, the news of a future role in the London subway buoyed Railtrack stock by 2.5 percent in a London market down by the same level.
Railtrack has until next March to flesh out its operational and financial plans for the subway network.
The announcement surprised many analysts as the government was widely expected to freeze the subway sale plans in the wake of the Paddington crash. The partial sale of the U.K. air traffic control system also was expected to be shelved.
Public confidence in the ability of private companies to run transport systems safely has plummeted. The government has said it is likely to strip Railtrack of its responsibility for rail safety in the United Kingdom. 
-- from staff and wire reports
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Railtrack
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