DfT Operator

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DfT Operator Limited (DFTO) is a British state-owned holding company established in 2018 as DfT OLR Holdings Limited by the Department for Transport (DfT). It was created to act as the operator of last resort for rail franchises in England, taking over train operating companies (TOC) that were either failing, or being returned to state ownership at the end of their contract terms. DFTO's role has significantly expanded since its inception, particularly following the passage of the Passenger Railway Services (Public Ownership) Act 2024, which enabled the government to assume ownership of passenger rail services without buying out private contracts. Under this framework, the government has announced that it will not renew or extend existing private rail operating contracts, instead transferring services to DFTO as they expire. This policy forms part of the Labour Party's commitment to renationalise passenger rail, a key pledge of its 2024 general election manifesto. Acting under the direction of DfT, as of September 2026 DFTO owns ten TOCs, making it the largest operator of passenger rail services in Britain by passenger revenue and mileage, being responsible for over four in ten passenger journeys. It is expected to play a transitional role in the government's long-term rail strategy, ahead of the launch of Great British Railways, a planned public body that will integrate both operations and infrastructure across the national network. It is expected that all TOCs will be in state ownership by the end of 2027.