Rail reopening rejected by regulator

Plans to reinstate passenger rail services on a line in Hampshire have been rejected by a government regulator.

Alliance Rail Ltd applied in 2025 to run trains between Marchwood on the edge of the New Forest and London Waterloo.

However, the Office of Rail and Road (ORR) said it had concerns about network capacity, the firm's future performance, the need for infrastructure and the scheme's financial viability.

Alliance managing director Ian Yeowart said: "We have never previously had reason to publicly comment on ORR rejection letters, but the content of this decision letter from the ORR is shoddy, unevidenced and, concerningly, factually incorrect in many areas."

The BBC has asked Alliance Rail to clarify which parts of the letter are inaccurate.

An ORR spokesperson said that, while it notes Yeowart's comments, they are "satisfied our decision to reject this application, on multiple grounds, is clearly supported by the evidence provided to us by Alliance and Network Rail".

Previously, the firm said it had developed a workable timetable and confirmed that its Class 769 trains would perform at the route's full line speed.

It said its proposals would create about 80 jobs and address "chronic road congestion on the A326".

However, in its decision letter, the ORR said there is not enough capacity on the relevant part of the network for the application to be approved.

It added: "The lack of available capacity (track and station) and uncertainty over the ability of the rolling stock to perform as required in the timetable means this application would introduce risks to railway service performance rather than improving it."

Chancellor Rachel Reeves announced the scrapping of the Restoring Your Railway (RYR) fund in August 2024 and Network Rail has said the project would not be "value for money".

In response, supporters of the scheme said they were "very disappointed".

In 2022, Network Rail consulted on plans to reopen six miles (10km) of the Waterside Line from Hythe to Southampton, more commonly known as the Fawley branch line.

Although plans had been in development since 2009, the reopening of the freight line to passengers had become part of the RYR programme, promoted by former transport secretary Grant Shapps.

The Fawley branch had not seen regular passenger trains since 1966.

The Marchwood signalling facilities would have needed upgrading and a new station would have needed building at Hythe.

The aim was for one two-carriage diesel train running every 30 minutes to Southampton Central.

The regional Three Rivers Community Rail Partnership estimated the total cost for reintroducing the service would have been £45m.

A parallel plan to build 1,500 homes on the site of the former Fawley power station, which had been approved, was withdrawn in 2024.

1925 - Fawley branch line opens, split from the South West main line, with stations at Marchwood, Hythe and Fawley

1951 - Fawley oil refinery expanded

1965 - Passenger services end as part of the Beeching cuts of Britain's rail network

2009 - Plan to reopen the route to passengers unveiled, and a report by the Association of Train Operating Companies finds it has the best value for money case for reinstatement in the country.

2016 - With most crude oil arriving via pipeline and on tankers, the last oil train uses the line

2020 - SWR runs a "fact-finding train" to demonstrate the branch line's potential

2022 - Network Rail consultation finds 84% of local people support the reopening

2024 - Government and Network Rail confirm the plans will not be progressed

2026 - An application for passenger services between Marchwood, Southampton and London is rejected by the Office of Rail and Road

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