The UK rail industry needs to spend money carefully as it adapts to anticipated demand.

This is according to the Office of Rail Regulation's (ORR's) chief executive officer Richard Price. Speaking at the Future of Rail conference today (December 5th), he called for money to be invested in key areas.

He said: "Spending the right amount of money, in the right place, at the right time, will reduce delays, bring down costs and secure a safe and sustainable railway now and for the future."

Mr Price stated there are eight per cent more trains running on the network than five years ago. In the next five years, passenger volumes are predicted to rise by 14 per cent, while freight will go up 22 per cent.

Transport minister Baroness Kramer also spoke at the conference, citing similar growth. However, she predicts freight will only increase by four per cent.

Nonetheless, she stated Network Rail will spend more than £38 billion between 2014 and 2019 to expand and maintain the UK's rail infrastructure, including the electrification of 850 miles of track. In contrast, only nine miles were powered in 1997 to 2010.