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First Group vs Stagecoach for South Western franchise

First Group and Stagecoach have been shortlisted to run the next South Western franchise, meaning a new company could be brought in to operate the network for the first time in two decades.

The franchise, set to start in June 2017, covers routes and stations between London Waterloo, Reading, Bristol, Exeter, Weymouth and Portsmouth.

It is currently operated by South West Trains, owned by Stagecoach. The firm was initially expected to be granted a direct award of the new franchise when it ended in February 2017, running to at least April 2019.

But it confirmed in July last year that the Department for Transport (DfT) was interested in inviting other applicants to tender for a new long-term franchise, despite Stagecoach having run the network since British Rail was privatised in 1996.

A DfT spokesperson told RTM that the move was designed to ensure the best deal possible for passengers and taxpayers.

Rail minister Claire Perry reiterated this today: “The South Western franchise has some of the busiest routes in the country, serving a diverse range of passengers and places. It is vital that we have the best partner to help us meet the challenge of delivering better journeys for all customers using these services.

“We are investing in additional capacity, and have ambitious plans for smart ticketing, customer service and improved connectivity across the South Western network, to give passengers real benefits across the region and beyond.”

The franchise is one of the largest in the UK, operating more than 1,600 trains a day across urban, suburban, regional and long-distance routes, as well as the Island Line on the Isle of Wight. In September last year, the DfT also said it wanted the next franchisee to come up with ideas for spinning off the Island Line into a “separate and self-sustaining business during the life of the franchise”.

Steve Montgomery, First Rail managing director, said: “We have extensive experience of running commuter, inter-urban, regional and long distance services - such as those that make up the South Western franchise – and a strong track record in delivering passenger growth, as well as capacity and infrastructure upgrades, on our Great Western Railway and First TransPennine Express networks.

“The South Western franchise plays a crucial role in keeping people moving and communities prospering across the region. We are developing an innovative and value for money proposal that will deliver better connectivity and significant improvements for customers. We look forward to the publication of further details by the DfT.”

Some of South Western’s commuter routes are also the first ones coming up in Transport for London’s plans, currently under consultation, to take over the capital’s suburban network.

It is expected that bidders will be required to draft plans for a separable business unit for inner London services, as already detailed in the franchise prospectus from last year. This would potentially be transferred to TfL in 2020 once capacity works at Waterloo comes to an end.

(Top image c. Alvey and Towers)