TORY Transport Secretary Patrick McLoughlin is secretly courting venture capitalists seeking to profit from the privatisation of Network Rail, the Morning Star can exclusively reveal today.

Mr McLoughlin has personally met representatives of UBS Bank and Infra Capital to gauge interest about a break-up from potential buyers.

A source at the meeting held two weeks ago described how they discussed which parts of Britain’s rail infrastructure would be profitable enough to sell.

It is the clearest sign yet that the government’s Shaw Report into the future of Network Rail will recommend its privatisation when it’s published later this month.

We Own It campaign director Cat Hobbs told the Star: “The fact that the Department for Transport (DfT) is meeting investors shows the direction of travel — towards privatisation and fragmentation of the rail network.

“But even the DfT aren’t sure of the best route to get there, which is why they are asking bankers for help.”

Asked about the liaisons, the DfT said the Transport Secretary “regularly meets with a range of experts, including senior figures in transport and business, academics and union representatives, to discuss the future of the transport industry.”

Separate consultation meetings held by Nicola Shaw, who is leading the review of Network Rail, have also been attended by City investment firms poised for privatisation.

A source at the meetings told the Star how big business representatives were almost “salivating” at the prospect of getting their hands on more public assets.

Rail union TSSA leader Manuel Cortes warned: “Global venture capitalist companies are the robber barons of the 21st century.

“Their accomplices at the DfT under instruction from Chancellor [George] Osborne are opening up the doors to these marauding privateers so they can take the rich pickings of what’s left of Britain’s fine publicly owned rail industry.

“These global corporations will privatise the profitable bits and leave the rest of the rail network to fall into debt and decline which will in the long run cost the taxpayer more.”

Details of the meeting have been disclosed just a day after Network Rail admitted it is “assessing interest” from global speculators in its power infrastructure.

Chief executive Mark Carne claimed privateers could bring “new capital and expertise” to Britain’s railways.

But RMT general secretary Mick Cash said: “This is all about asset-stripping, fragmentation and profiteering by global companies at the expense of rail services.

“The proliferation of contractors and sub-contractors is already dragging Network Rail’s performance down and the flogging off of the power assets would simply up the ante on the fragmentation that is the root cause of many of the daily problems hitting services.”

Network Rail has also hired the Citigroup bank to help it flog off 18 of Britain’s biggest train stations, along with other land it plans to sell to housing developers.

Labour shadow transport secretary Lilian Greenwood said: “There are real fears that passengers and taxpayers will pay the price for this fire sale of Network Rail’s assets.

“These plans will leave Network Rail without valuable long-term sources of revenue which could push up both fares and the overall cost of running the railway.

“They should now focus on addressing the chronic fragmentation of the rail network, not on selling-off and breaking up Network Rail.”

Campaigners and rail union members started a week of action against station sell-offs yesterday with demonstrations in London and Glasgow.

Ellie Harrison, who runs the Bring Back British Rail campaign, said: “There is overwhelming public support for the renationalisation of our entire rail network.

“So this opportunistic and short sighted proposal to privatise some of our most-loved and well-used stations is just another example of a UK government completely out of touch.”