Crowdfunding Railways — Rebuilding the Shanklin to Ventnor Line
By: Paddy Barnes
Tags: Infrastructure, Isle Of Wight, Crowdfunding, Railways

There used to be a railway line between Shanklin and Ventnor on the Isle of Wight. Built by the Victorians it was axed in 1966. There are current proposals to look into the feasibility of bringing it back. We should do this. I think we should crowdfund some of it and give an ownership percentage to the local community. I also think the Government could build a light rail or tram-train.

The old line is currently serving as a cycle track between Shanklin and Wroxall. There the line disappears under a new housing estate through a blocked-off tunnel to its terminus in Ventnor. I am not a railway engineer and can’t comment on the specific challenges of construction. My only experience in infrastructure design is playing Sim City. If the authorities do decide to go ahead however I think building a light rail or tramway makes a lot of sense.

Light Rail and Tram-trains

Any large infrastructure project is expensive and often ends up over budget. To reinstate the Shanklin to Ventnor route we need to build approximately 4 miles of track. Across the world, light railway systems are being built. The Government seems quite keen on them in UK cities also. The main benefits of a light rail system are that it’s cheaper to build and maintain. There are less operational headaches and they look cool. Enthusiasts argue about the definition but to my mind, picture a tram with overhead cables and that’s what I mean in this context. These are normally seen in cities but should work for our short rural line. Wired magazine has an article about the tram-train hybrid. They can travel on tramways and heavy rail. This would mean the train could connect to the existing line at Shanklin and continue on to Ryde. Although in that case the whole line may have to be adapted.

Crowdfunding

If the government decides the scheme can go ahead then another reason a light railway makes sense is ownership. Heavy rail is owned centrally and their operation franchised. Trams and Light Rail can be owned entirely by the local authority which means they also get all the profits. I think we can take it a step further and allow direct community ownership via crowdfunding. The local authority would form a management company and any local resident can invest a minimum of £10. They would receive annual dividends of the excess profit or other perks like travel discounts.

I understand that crowdfunding alone will not finance the project. It will offset some Government spending but I think the greater benefit is fostering a sense of ownership in a local asset. A local community with a tangible stake will be more likely to use and support the railway. The local authority will also be more directly accountable to the community.

It shouldn’t be too difficult to manage all of this. The management company would make an initial offering on existing crowdfunding sites like Seedrs or Crowdcube. The minority shareholders could also be represented by via a nominee to streamline things a bit.

Many favour railways in public ownership. I don’t agree but I think crowdfunding could offer a hybrid system in this small example. You could imagine the management company is owned partly by the community, the local authority and a larger investor.

Many private railways exist in Japan and are run profitably with high customer satisfaction. According to the FT it would be difficult for the UK to copy the Japanese system wholesale. We could still adopt some best practises. The Japanese Government sets a higher limit on fares and allows an appropriate profit for operators. In our crowdfunded railway these rules could be enshrined within the company articles. Any large investor would buy-in on these terms. East Japan Railway Company (JR East) took a minority stake in West Midlands Rail. Maybe we could convince them Ventnor Rail would be a good long term investment?

Local Infrastructure Investments

It is well documented that building infrastructure greatly improves the local economy. The railway itself will create a number of jobs but will also have a multiplier effect. I think building such a project shows clear intention and will convince others that Ventnor is worth investing in.

Ventnor residents should benefit directly from the line in terms of connection. They will also benefit indirectly with new inbound tourists given access to the town. The immediate effect of the Coronavirus pandemic has been a reduction of international travel. A domestic holiday suddenly looks more appealing. If the trend persists then a railway will mean Ventnor is well-positioned for the future.

Finally, there are obvious environmental benefits. Increasing car journeys was one of the reasons that the original line was decommissioned after the Beeching report. Rail travel has in fact increased since the 1960s. Reducing car journeys is now a necessary part of addressing climate change. The government has banned petrol engine cars being sold past 2035. The intention is clear and now it’s time for a new era of community owned rail to reconnect our towns.