All change as Severn Valley Railway unveils plans for ‘bold’ but 'essential' restructure
The Severn Valley Railway (SVR) has unveiled plans for a radical organisational restructure which it says will 'ensure it’s in the best possible position to survive and thrive in the years to come.’
The railway is seeking approval from its shareholders and members for changes which are, it says, part of a ‘bold and essential move'.
The plan for the railway, which has been impacted by challenges such as Covid and reduced passenger numbers in recent years, is to bring together the three separate companies that currently make up the SVR, into a new ‘One Railway’ structure.
Bosses say this will help them to create a stronger, more vibrant and efficient operation, and to secure a robust future for the leading heritage line.
Chris Walton, the chair of Severn Valley Railway (Holdings) Plc said: "For the past two years, a working party of people who care deeply about the future of the SVR has been carrying out a strategic review of how the railway might be better organised and positioned.
"Its conclusion is that the SVR urgently needs a new type of company structure, to ensure it’s in the best possible position to survive and thrive in the years to come."
In the plan, the first step would see the conversion of the company that owns and operates the railway, Severn Valley Railway (Holdings) Plc, into a Charitable Community Benefit Society, or CCBS.
The newly formed CCBS would then amalgamate with the Severn Valley Railway Company Limited, the sister organisation that looks after membership and provides volunteers to help run the railway.
The third member, the Severn Valley Railway Charitable Trust, is fully supportive of the plan, but cannot commit to the process at present, because it is itself in a period of transition. The plan provides for the inclusion of the SVRCT with the CCBS as soon as its circumstances allow.
"There’s no doubt that what we’re planning is bold," said Chris Walton, chair of SVR (Holdings).
"‘But it’s something that we consider to be absolutely essential, to ensure our railway survives and prospers.
‘In common with others in the heritage railway sector, we’ve faced a long and arduous struggle over the past few years, made worse by a number of factors.
"We’ve seen huge increases in costs, falls in income because of the Covid lockdown, followed by continuing reduced passenger numbers because of inflationary pressures on leisure spending, and a detrimental effect on membership and volunteering generally."
The SVR is writing to its 12,800 active shareholders and 9,750 members to explain why it believes the changes are needed.
It will set up a series of meetings with shareholders, members and volunteers in early 2025 to discuss the plans. Voting on the two stages described in the railway’s restructure plan will take place at separate Extraordinary General Meetings of SVR (Holdings) Plc and the SVR Company Limited later in the year.
Diane Malyon, the chair of the Severn Valley Railway Company Limited, said: ‘The tough times we’ve faced have highlighted significant weaknesses in our current structure that we can no longer ignore.
"As we look towards 2025 when we will celebrate our 60th year as a heritage railway, it’s clear that this is the time to change. We’re mindful of our proud past, but we need to look with confidence to the future."
