30.07.12
FirstGroup leading West Coast franchise race?
FirstGroup seems to be the frontrunner to win the next West Coast Main Line rail franchise, pushing incumbent Virgin Rail into second position, according to reports and industry speculation over the weekend.
The two operators have been vying for the contract, after rumours suggested the other two shortlisted bidders, Abellio and a bid backed by SCNF, were all but out of the running.
According to the Guardian, FirstGroup has offered the Department for Transport a premium of between £6.5bn and £7bn, over the 14-year span of the contract. This is reported to be 15-20% higher than Virgin’s bid.
However, rail franchises are judged on a number of criteria, and it is not known whether the largest premium bid is enough to guarantee the contract.
FirstGroup said: “We do not comment on speculation or market rumours of any kind. All decisions relating to the tendering of rail franchises are the responsibility of the Department for Transport.”
And Virgin Rail stated: “We do not comment on our franchise bids.”
A final decision on the contract is expected in August.
The RMT union has jumped on the speculation, with its general secretary Bob Crow saying: “If the rumours that First Group are now in pole position on the West Coast turn out to be true it will prove that there is no outrage that one of these greedy rail companies can perpetrate on the British people that will get them barred from the franchising casino.
“First pulled the pin on the Great Western route to dodge £800m in payments back to the taxpayer and here they are just months later sitting pretty on the West Coast deal. If they pull this off it will turn the UK rail industry into a global laughing stock and the British taxpayer will be rightly outraged.”
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Image c. Kevin R Boyd