Transport Act 1968

Part I — Integration of Freight Transport Services

The National Freight Corporation

Expenses.

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General powers of Freight Corporation

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• (1) Subject and without prejudice to the provisions of, or of any enactment applied by, sections 47 to 52 of this Act, the Freight Corporation shall have power—

• (a) to carry goods by road, whether in or outside Great Britain;

• (b) to enter into arrangements with the Railways Board for the conveyance of goods by the Board, whether as agents of the Corporation or otherwise, on such terms as may be provided for in the arrangements—

• (i) by rail, whether in vehicles provided by the Corporation or by the Board or by some other person;

• (ii) by means of any transport services provided by the Board in pursuance of their powers under section 5 of the Act of 1962;

• (c) to act as agent for the Railways Board for the purposes of any services for the carriage of goods provided by the Board;

• (d) to provide—

• (i) the like transport services by sea as immediately before the appointed day for the purposes of section 4(1) of this Act were provided by any of the bodies to whose securities that section relates;

• (ii) with the consent of the Minister, any other transport services by sea;

• (e) with the consent of the Minister, to provide transport services by hovercraft;

• (f) to consign goods on behalf of other persons from or to any place, whether in Great Britain or elsewhere ;

• (g) to store goods which have been or are to be carried by the Corporation, the Railways Board or a subsidiary of the Corporation or that Board, and—

• (i) so far as any premises provided by the Corporation for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

• (ii) with the consent of the Minister, to provide such facilities at any other premises ;

• (h) to enter into and carry out agreements with any person engaged in the provision of services for the carriage of goods, by whatever form of transport, for co-ordinating the activities of that person with those of the Corporation, and in particular for the provision of combined services for the through carriage of goods, whether by the same or partly by one and partly by another form of transport, for the quoting of through rates, and for the pooling of receipts or expenses;

• (j) to join with any person engaged as mentioned in paragraph (h) of this subsection in forming, promoting and assisting a company for carrying on any activities in connection with such combined services as are so mentioned which the Corporation or that person have power to carry on;

• (k) either alone or together with any other person, to provide, maintain and operate depots for the sorting of goods, with facilities for the reception, storage, weighing and handling of goods and for compliance with the requirements of the enactments relating to customs and excise;

• (l) to operate harbours;

• (m) to let for hire any vehicle, vessel or other means of transport owned by them ;

• (n) with the consent of the Minister, to carry on any activities which the Corporation would not apart from this paragraph have power to carry on but which a subsidiary of the Corporation was carrying on immediately before it became such a subsidiary.

• (2) The Freight Corporation shall not be regarded as common carriers in respect of any of their activities.

Financial provisions with respect to Freight Corporation

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• (1) Subject and without prejudice to the provisions of section 41 of this Act, the following provisions of the Act of 1962, namely—

• (a) section 18 (financial duty of Boards);

• (b) section 19 (borrowing powers of Boards);

• (c) section 20 (loans out of National Loans Fund);

• (d) section 21 (Treasury guarantees); and

• (e) section 24 (accounts),

shall apply to the Freight Corporation as they apply to the Boards.

• (2) The Freight Corporation shall assume a commencing capital debt in accordance with the provisions of Schedule 2 to this Act.

• (3) The aggregate amount outstanding in respect of—

• (a) the principal of any money borrowed by the Freight Corporation under section 19 of the Act of 1962, and

• (b) the Corporation's commencing capital debt,

shall not exceed £200 million or such greater sum not exceeding £300 million as the Minister may from time to time by order specify; but no order shall be made under this subsection unless a draft thereof has been approved by a resolution of the Commons House of Parliament.

Transfer of assets, etc

Transfer to Freight Corporation of certain securities, rights and liabilities

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• (1) On the appointed day for the purposes of this subsection—

• (a) the securities of the bodies listed in Part I of Schedule 3 to this Act, so far as beneficially owned on that day by the Holding Company or by any wholly-owned subsidiary of that Company, and

• (b) the securities of the bodies listed in Part II of that Schedule, so far as beneficially owned on that day by the Railways Board, and

• (c) any rights or liabilities on that day of that Company or subsidiary or, as the case may be, of that Board regarding the securities of any of those bodies, and

• (d) the right to any money owed on that day to that Company or subsidiary or, as the case may be, to that Board by any of those bodies, and

• (e) the liability represented by any money owed on that day by that Company or subsidiary or, as the case may be, by that Board to any of those bodies, and

• (f) any rights and liabilities of that Company on that day in connection with B.R.S. Federation Limited, and

• (g) any rights and liabilities of the Holding Company by virtue of paragraph 5(a) or (d) of Schedule 5 to the Act of 1962,

shall, subject to subsection (3) of this section, be transferred to, and by virtue of this Act vest in, the Freight Corporation.

• (2) The Minister may by order made not later than the appointed day aforesaid add to Part I or Part II of the said Schedule 3 any body not for the time being listed in that Part if the Minister is satisfied—

• (a) that the activities of the body are similar to those of the bodies for the time being listed in one or other of those Parts; and

• (b) that the Holding Company or a wholly-owned subsidiary of that Company or, as the case may be, the Railways Board are for the time being the beneficial owners of any securities of that body.

• (3) Where any of the securities aforesaid are beneficially owned as mentioned in paragraph (a) or (b) of subsection (1) of this section but held by a nominee, that subsection shall operate only to transfer the beneficial interest in the securities; and paragraphs (d) and (e) of that subsection shall not apply to money owed in the ordinary course of trading.

• (4) The rights and liabilities of the Holding Company under such agreements for the rendering of personal services by persons who immediately before the appointed day aforesaid are employed by the Holding Company as may be determined in accordance with arrangements agreed between that Company and the Corporation before that day or, in default of such agreement, in accordance with such arrangements as the Minister may before that day direct, shall on that day be transferred to, and by virtue of this Act vest in, the Corporation.

• (5) Paragraph 2(3) and (4) of Schedule 4 to this Act shall apply to any transfer under subsection (4) of this section, and paragraphs 1 to 13 of that Schedule shall apply to any transfer under that subsection or subsection (1) of this section.

Formation by Railways Board of, and transfer to Freight Corporation of shares in, subsidiary companies

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• (1) The Railways Board shall take steps to the satisfaction of the Minister to effect, not later than two days before the appointed day for the purposes of the transfer referred to in subsection (3)(b) of this section, the separation from the remainder of their undertaking of those parts thereof concerned respectively with—

• (a) the carriage of freightliner containers and other high capacity containers (other than container traffic consigned from private railway sidings); and

• (b) the following activities, namely—

• (i) the carriage of the freight traffic commonly known as rail sundries traffic; and

• (ii) the collection and delivery of goods by road otherwise than by way of such carriage as is mentioned in paragraph (a) of this subsection,

but excluding the provision of rail vehicles for, and the haulage by rail of, the containers referred to in paragraph (a) or, as the case may be, the traffic referred to in paragraph (b)(i) of this subsection; and the Board shall from time to time furnish the Minister with such information as he may require with respect to the property, rights and liabilities which the Board propose to treat as included in each respectively of those parts of their undertaking, and the Minister may give directions to the Board as to the property, rights and liabilities to be so treated.

• (2) The Railways Board shall secure that, not later than two days before the appointed day aforesaid, two wholly-owned subsidiaries of the Board are formed of which—

• (a) one (hereafter in this section referred to as " the freight-liner company") shall be formed with the object of carrying on such activities as are mentioned in subsection (1)(a) of this section; and

• (b) the other (hereafter in this section referred to as " the freight sundries company ") shall be formed with the object of carrying on such activities as are mentioned in subsection (1)(b) of this section;

and all securities of those companies shall be issued, as the Railways Board may direct (after consultation, in the case of fifty-one per cent. in nominal value of the securities of the freightliner company and in the case of all the securities of the freight sundries oompany, with the Freight Corporation), to the Board or to such other person or persons as the Board may nominate to hold them.

• (3) Subject to subsection (4) of this section—

• (a) on the day before the appointed day aforesaid there shall be transferred to, and by virtue of this Act vest in, the freightliner company and the freight sundries company respectively all the property, rights and liabilities comprised in the part of the Railways Board's undertaking referred to in paragraph (a) or, as the case may be, paragraph (b) of subsection (1) of this section; and

• (b) on the appointed day there shall be transferred to, and by virtue of this Act vest in, the Freight Corporation the aforesaid fifty-one per cent. of the securities of the freightliner company and all the securities of the freight sundries company.

• (4) Schedule 4 to this Act shall apply to any transfer under paragraph (a), and paragraphs 7 to 13 of that Schedule shall apply to any transfer under paragraph (b), of subsection (3) of this section, and the said paragraph (a) shall have effect subject to the provisions of that Schedule; and, in the case of any securities held by any person other than the Railways Board, the said paragraph (b) shall operate only to transfer the beneficial interest in those securities.

• (5) For the period of five years beginning with the appointed day aforesaid the Minister may make to the Freight Corporation grants of such amount for each respectively of those years payable in such manner as the Minister may with the approval of the Treasury determine towards any loss which it is estimated will be incurred in that year by the Corporation or the freight sundries company in the carrying on of such activities as are referred to in subsection (1)(b) of this section; but the aggregate amount of those grants shall not exceed £60 million.

The Freight Integration Council

The Freight Integration Council

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Redistribution of activities between Freight Corporation and Railways Board or Scottish Group

Transfer schemes by authorities

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Transfer orders by Minister

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Part II — Integrated Transport Areas and Passenger Transport Areas

Designation of Integrated Transport Areas or Passenger Transport Areas and establishment and functions of Authorities and Executives

Passenger Transport Areas, Authorities and Executives

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• (1) Subject to any order under section 42(1)(c) of the Local Government Act 1985 (alteration or abolition of passenger transport areas, etc.) for the purposes of this Part of this Act—

• (a) each of the following areas shall be designated as follows, that is to say—

• (i) in England and Wales, each of the metropolitan counties except a metropolitan county which is or is included in a combined authority area or a combined county authority area shall be an integrated transport area; ...

• (ia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) in Scotland, such area to be known as the Strathclyde Passenger Transport Area as the Minister may designate for the purposes of section 40 of the Local Government etc. (Scotland) Act 1994 shall be a passenger transport area;

• (aa) any reference to a “combined authority” is to an authority established under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 for an area which is or includes a metropolitan county;

• (ab) any reference to a “combined authority area” is to an area for which a combined authority is established;

• (ac) any reference to a “combined county authority” is to an authority established under section 9(1) of the Levelling-up and Regeneration Act 2023 for an area which is or includes a metropolitan county;

• (ad) any reference to a “combined county authority area” is to an area for which a combined county authority is established;

• (b) any reference to “the Authority” is a reference to—

• (i) in relation to an integrated transport area in England and Wales, the Integrated Transport Authority established for the metropolitan county which is coterminous with or includes that integrated transport area; ...

• (ia) in relation to a combined authority area ..., the combined authority;

• (iaa) in relation to a combined county authority area, the combined county authority;

• (ib) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) in relation to the Strathclyde Passenger Transport Area, the Strathclyde Passenger Transport Authority

• (c) the Passenger Transport Executive for a passenger transport area (referred to below in this Part of this Act, in relation to that area, as “the Executive") shall be any reference to “the Executive” is a reference to—

• (i) in England and Wales (except as mentioned in sub-paragraph (ia) sub-paragraphs (ia) to (ie)) the body which immediately before the date mentioned in paragraph (a) above was the Passenger Transport Executive for the designated area for the purposes of this Part of this Act corresponding to that passenger transport area; and

• (ia) in relation to the area of the West Yorkshire Combined Authority, that Authority;

• (iaa) in relation to the area of the West Midlands Combined Authority, that Authority;

• (ib) in relation to the area of the Greater Manchester Combined Authority, the Greater Manchester Passenger Transport Executive;

• (ic) in relation to the area of the Greater Merseyside Combined Authority, the Merseyside Passenger Transport Executive;

• (id) in relation to the area of the Barnsley, Doncaster, Rotherham and Sheffield Combined Authority, the South Yorkshire Passenger Transport Executive;

• (ie) in relation to the area of the North East Mayoral Combined Authority, the Tyne and Wear Passenger Transport Executive;

• (ii) in Scotland, the Strathclyde Passenger Transport Executive

• (2) The Executive for an integrated transport area , a combined authority area , a combined county authority area or a passenger transport area consists of—

• (a) a Director General appointed in accordance with Part II of Schedule 5 to this Act by the Authority; and

• (b) not less than two nor more than eight other members so appointed by the Authority after consultation with the Director General.

• (3) Subject to subsection (2) of this section and Part II of Schedule 5 to this Act, the Secretary of State may by order make with respect to the Executive for any integrated transport area , a combined authority area , a combined county authority area or passenger transport area—

• (a) such provision with respect to any of the matters referred to in Part III of that Schedule; and

• (b) such supplementary, incidental and consequential provision;

as appears to the Secretary of State to be necessary or expedient.

• (4) Before making any order under subsection (3) of this section, the Secretary of State shall consult with the Passenger Transport Authority the Authority for the area and, where the area is in England and Wales, with the councils of the districts comprised in the county which is coterminous with or includes that area.

• (5) Each of the councils of the districts comprised in a county which is coterminous with or includes a passenger transport area an integrated transport area or a combined authority area a combined authority area or a combined county authority area and each of the following bodies namely, the Authority, the Executive and any subsidiary of the Executive, shall have power to enter into and carry out agreements with one another for the giving of assistance by that council to that body or, as the case may be, by that body to that council by way of making available to the assisted party any services or facilities provided by, or any property of, the assisting party.

• (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) In relation to any area in Scotland or Wales, any reference to the Minister in any provision of this Part of this Act or Schedule 5 . . . thereto other than section 20(6) and (7) shall be construed as a reference to the Secretary of State.

• (6A) This section applies in relation to each of the authorities within subsection (6B) as if—

• (a) subsections (2) to (4) were omitted; and

• (b) in subsection (5), the words “the Executive and any subsidiary of the Executive”. were omitted.