Network Rail, the owner and operator of Britain's rail infrastructure, is to be fined £2.4m for "the weaknesses in the planning and execution" of a resignalling project.
The fine was imposed today by The Office of Rail Regulation (ORR) which claims Network Rail has breached its network licence by failing to complete signalling and upgrade works in the southern town of Portsmouth.
In particular, Network Rail was found to have failed to consider the possibility of an extended overrun of the commissioning works and the effects on passengers.
The replacement of signals and remodelling of 50 miles of track around Portsmouth was due to finish in January but is now expected to be completed in October this year.
In response, Network Rail's Group Infrastructure Director Peter Henderson says the body felt the penalty had been harsh, considering action taken by the company.
"The company took prompt action to mitigate the disruption to passengers and the majority of services were restored some time ago," Henderson says.
The company says it will continue to work with train operators to deliver major infrastructure and remodelling works.
Last week the UK Government announced its railway strategy in a White Paper promising improved rail infrastructure, an overhaul in fare systems and new commuter rail links across the country by 2015.
Report by Ozge Ibrahim
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