26.02.18
Abellio withdraws from Wales and Borders after Carillion collapse
Abellio has announced today that it will withdraw its bid for the upcoming Wales and Borders franchise following the liquidation of its construction partner Carillion.
The move leaves just two groups left in the running for the franchise after current operator Arriva Trains Wales also pulled out in October last year.
The final two bidders are KeolisAmey and MTR, with a decision on the winner due to be made in October.
In addition to the rail franchise, the winning bidder will be expected to take forward certain aspects of the £600m South Wales Metro as part of continuing transport devolution in Wales.
Announcing the decision, a spokesperson from Abellio said: “Following the liquidation of Carillion PLC on Monday 15 January, Abellio Rail Cymru has taken the decision to withdraw from the contract letting process for the Wales and Borders Rail Service and South Wales Metro competition.”
The fall of Carillion has had far-reaching effects on the British rail industry, with the company having been one of Network Rail’s top suppliers and also heavily involved in HS2.
However, last week Amey announced that it would be taking over Carillion’s Network Rail contracts, including major projects in the East Midlands, London and the north west.
Last month, it was also agreed that PwC would pay the wages of Carillion employees for Network Rail contracts until after Easter, with many smaller rail suppliers paid the arrears they were owed.
Top image: Mattbuck
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