The Labour government of the United Kingdom on Wednesday announced its plans to renationalize three major rail operators in 2025 under the newly enacted Passenger Railway Services Act 2024, which was approved by the House of Lords late last week.

Transport Secretary Heidi Alexander described the initiative as a "first step" toward creating a more integrated and unified railway system. South Western Railway will be the first to return to public ownership in May 2025, followed by c2c in July and Greater Anglia in the autumn.

In an interview with the BBC, Alexander cited improvements under publicly managed operators such as LNER and Southeastern as evidence of the benefits of public ownership. With LNER, for example, train cancellations due to staff shortages have been reduced to zero, and other cancellations have been reduced to about 5 percent, she said.

Alexander emphasized that the cost of renationalizing the operators and establishing Great British Railways, the arms-length body that will oversee the system, would be significantly lower than the 150 million pounds (about $190 million) currently paid annually in management fees to private operators.

However, critics, including Rail Partners CEO Andy Bagnall, argue that simply changing ownership will not solve the systemic issues plaguing the railways.

The three operators slated for renationalization play crucial roles in the UK rail system. South Western Railway operates over 1,500 weekday services in southwest London and southern England, serving key commuter routes into London. Meanwhile, c2c provides services between Fenchurch Street and Shoeburyness, covering 26 stations across east London and south Essex. Greater Anglia connects London with Norfolk, Suffolk, Cambridgeshire, Hertfordshire, and Essex, offering a mix of commuter and regional services.