07.04.16
Two foreign firms and Govia in the running for West Midlands franchise
Three train companies have been shortlisted to run the next West Midlands franchise competition, including two international firms and Govia, the franchise’s current operator.
The franchise, currently operated by Govia’s London Midland, could stay in the company’s hands or be transferred to West Midlands Trains Ltd (a wholly-owned subsidiary of Abellio with East Japan Railway Company and Mitsui & Co Ltd as minority partners) or by MTR Corporation West Midlands Ltd (a wholly-owned subsidiary of MTR, a Chinese company).
The joint consortium of East Japan Railway and Mitsui & Co has also been awarded a new pre-qualification questionnaire (PQQ) passport, thus joining the list of the department’s ‘passport holders’ who are eligible to express an interest in any upcoming franchise for the next four years.
Rail minister Claire Perry said: “The West Midlands franchise serves both commuters and long distance passengers and we are confident these companies will create high quality bids that can deliver better journeys for all.
“Today’s announcement marks a key step forward in giving passengers improved services across the region and beyond.”
According to the DfT, the companies were shortlisted today after submitting an expression of interest. Although there was no mention of this in the department’s statement, it is expected that the new operator will be required to work with West Midlands Rail (WMR) to prepare for full devolution across the region’s network.
The new operator will take over the franchise in October 2017, at which point London Midland’s extended contract ends. The contract award is expected to be made in June 2017.
The current franchise spans a combination of commuter and long-distance services across the Midlands, the south east and north west, as well as services to London Euston and Liverpool Lime Street.
But WMR, a partnership between local transport authorities, has been calling for further devolution of services, including a proposal to split the franchise into two business units early in the new franchise term.
One of these halves will be for the West Midlands local rail network, while the other will cater for services operated predominantly on the West Coast Main Line.
According to a 14-week consultation launched in December on the future of the region’s increasingly devolved rail services, the DfT already expects the new franchisee to put measures in place to tackle overcrowding, reduce delays and cancellations, and implement free on-board wi-fi.