Vital rail projects under threat

Multi-million pound schemes to improve London commuter links and tackle over-crowding are under threat because of the rail industry's funding crisis, it emerged today.

Train operators and industry sources say the Railtrack debacle, plus the fall in passenger numbers and revenue, has led to major doubts over finding the money for a number of vital projects.

South Central franchise owner GoVia has suspended a £330 million upgrade of track and signalling on South Central lines into Victoria. As the key reason for stopping work, it cites uncertainty over how the rail network will be funded and structured.

Key obstacles include the financial powers of the company that will replace Railtrack and a decision on the £1 billion Thameslink 2000 scheme. Essential engineering work on the heavily congested London to Brighton line is being scheduled to coincide with a decision on the Thameslink north-south rail link through London.

The hold-up will be "at least three months" - and leaves thousands of commuters with no end in sight for the appalling overcrowding revealed in the Evening Standard's recent investigation into "cattle truck" commuting.

It comes as London transport commissioner Bob Kiley told MPs last night that the private sector is unlikely to want to invest in the railways in the light of Railtrack's collapse.

Mr Kiley cast doubts on the Government's £60 billion 10-year rail plan, where £34 billion is meant to come from private investors and £26 billion from the Government.

He warned that much of the tax-payers' money allocated for improvements will disappear into "black holes" created by Railtrack such as the rising cost of the £6 billion West Coast main line upgrade linking London and Scotland.

Also likely to be affected by the funding shortfall are Stagecoach's plans to tackle overcrowding on its South West Trains routes.

Connex South Eastern is another operator with a question mark over £900 million plans to alleviate overcrowding with new trains and longer eight-carriage units on its London Metro routes. In a memo to staff asking them to cuts costs, managing director Olivier Brousse said the funding crisis is industry-wide. "Almost all train companies will suffer the same problem, but that is cold comfort to us," he said.

? Thousands of commuters endured a second night of travel misery on the Underground as bad weather and an electrical fire caused major disruption.

Piccadilly line services between Northfields and Heathrow were suspended for two hours from about 5pm to 7pm when a tree fell on the line at Osterley station.

On the Jubilee line, travellers endured three hours of chaos after a fire at Bond Street station. Subsequent delays hit services on the Victoria, Bakerloo and Central lines.