FM Rail
| Company type | Private |
|---|---|
| Industry | Railway charter services |
| Predecessor | Fragonset Railways, Merlin Rail |
| Founded | 1997 |
| Defunct | 2006 |
| Headquarters | Derby , England, United Kingdom |
| Products | Railway charter services, spot hire, railtour operations |
FM Rail operated as a railway charter enterprise headquartered in Derby, England, created through the amalgamation of the spot hire firm Fragonset Railways and the charter specialist Merlin Rail. The company entered administration in 2006.
Fragonset Railways
Founded in 1997, Fragonset Railways began as a spot hire provider, initially acquiring four Class 47/7 locomotives from Waterman Railways, with operations based at Tyseley Locomotive Works. Its inaugural contract commenced in November 1997, supplying locomotives to Virgin CrossCountry. Subsequently, the company established a permanent facility at the Railway Technical Centre, Derby, where its locomotives were repainted black with a wide maroon stripe.
In 1998, Fragonset expanded its roster by purchasing several redundant Class 31 locomotives from EWS, which were deployed on Silverlink services along the Marston Vale Line. After these units were replaced by DMUs in 1999, the Class 31s found use in various roles, including hauling electric multiple units for WAGN.
The company continued to grow its fleet by acquiring surplus locomotives from EWS, concentrating on Classes 31, 33, 47, and 73, culminating in a total of 75 units by 2002. Prominent operators such as First Great Western, Midland Mainline, and Virgin CrossCountry utilized Class 47s. Regional operators including Wessex Trains and First North Western employed Class 31s for passenger services, with some locomotives repainted to reflect client branding.
Infrastructure firms also made use of Fragonset's locomotives; for example, Railtrack hired Class 31s for test train duties before being replaced by Network Rail, which developed its own fleet. Freight operator First GBRf supplemented its stock with Class 73s sourced from Fragonset. Additionally, South West Trains deployed Class 33s and 73s as rescue engines, while heritage operator West Coast Railways leased locomotives adorned in distinctive liveries.
A number of locomotives bore an all-black freight livery prominently featuring Fragonset branding to boost corporate identity.
Merlin Rail
Merlin obtained its train operating licence in July 2002. Initially functioning as a decentralized "virtual company" without a fixed office, its control centre was first located in Maidstone, Kent. As operations grew, Merlin established premises at Wyvern House near Derby station by mid-2003.
Positioning itself as a specialist provider of bespoke train services, Merlin focused on a market niche often neglected by conventional rail operators, aiming to deliver tailored and high-quality offerings. It was the first operator licensed under the Railway (Safety Case) Regulations, 2000, possessing one of the most comprehensive safety cases that allowed full network access with all standard locomotives, passenger carriages, and freight wagons. Merlin was also authorised to operate novel and uncommon rolling stock.
FM Rail
In January 2005, Fragonset and Merlin combined to form FM Rail. By August that year, FM Rail had acquired Hertfordshire Rail Tours, broadening its presence within the railtour sector.
September 2005 saw FM Rail introduce a new livery when locomotive 47832 was repainted for a Crewe Works open day event. In January 2006, the company launched the Blue Pullman service featuring two Class 47 locomotives painted in Nanking blue to complement the coaching stock. That same year, FM Rail took over assets from Pathfinder Tours alongside Riviera Trains.
In February 2006, FM Rail commenced its inaugural freight operation for Fastline between Doncaster and York. The company also leased the former depot at Coalville, Leicestershire, intending to centralize withdrawn rolling stock there to reduce expenses while disposing of surplus locomotives for spare parts.
Administration
In December 2006, FM Rail was placed under the administration of Begbies Traynor. The administrator proceeded to divest the Fragonset Railways Maintenance division to Rail Vehicle Engineering Limited (RVEL), a company established by former FM Rail managing director Andy Lynch; this division was subsequently acquired by Loram and rebranded as Loram UK. Meanwhile, the Merlin Rail train operating licence along with Hertfordshire Rail Tours were transferred to Victa Westlink Rail, which itself later entered administration, with the majority of its assets being taken over by Stobart Rail.
The company's financial matters were finalized in June 2013, when unsecured creditors received a return of 2 pence per pound owed.