25.04.17
Virgin and Stagecoach join with SNCF on HS2 WCP franchise bid
Operators Virgin Trains and Stagecoach have today announced that they will launch a joint bid for the West Coast Partnership (WCP) HS2 franchise alongside state-owned French rail company SNCF.
The franchise will run from 2019 and will include the first few years of operation of HS2, meaning the chosen bidders will be responsible for designing the first high-speed services from 2026. As such, they must demonstrate experience of delivering both conventional and high-speed services.
The three companies have announced that they submitted an expression of interest to HS2 Ltd yesterday and are already working on their tender to run the huge project. The shareholding for the bid is split between 50% for Stagecoach, 30% for SNCF and 20% for Virgin.
Patrick McCall, Virgin Trains co-chairman, said he was delighted that SNCF had come on board and would hopefully help create the winning bid for the WCP franchise.
“We’ve just celebrated 20 years of Virgin Trains and this news puts us in the best possible position to make it 30,” said McCall.
“We’ve always focused on customers throughout our history, introducing many UK firsts such as tilting trains, automatic compensation for delays, m-Ticketing and free films and TV on-board via our BEAM service.
“We’re thrilled about the prospect of continuing and improving this record of innovation with the UK’s first long distance high-speed network, as well as with our friends and communities along the West Coast.”
HS2 Ltd has asked that bidders bring experience with high-speed rail to the table, something that SNCF can boast in spades. The company operates the largest fleet of high-speed trains in Europe (almost 430 trainsets), and also runs around 700 high-speed rail journeys every day in France and internationally at speeds of up to 320km/h.
Additionally, since 1981, SNCF has run the TGV service in France and also started a low-cost high-speed service, called Ouigo, in 2013. It’s estimated that the company’s high-speed wing recorded a turnover of around €7.5bn in 2016.
SNCF chairman and CEO Guillaume Pepy expressed his excitement at joining the HS2 bid: “SNCF has a long-standing commitment of working in partnership with British companies, using their local knowledge and sharing our expertise and experience.
“Today, we are delighted to announce this next step in our commitment to UK rail, working with partners who have demonstrated their own expertise in long distance rail services and are highly regarded in the industry.”
Pepy added that SNCP appreciated having Stagecoach’s widespread expertise across a variety of transport modes as well as Virgin’s “fantastic” reputation for customer experience.
And Martin Griffiths, chief executive of Stagecoach Group, added: “This creates a powerful world-class partnership, bringing together the team which has transformed inter-city rail travel in the UK with the most recognised and capable high-speed operator in Europe.”
The Stagecoach CEO also explained how the company appreciated the role HS2 had to play in delivering improvements and creating space on the UK to boost the country’s communities and economy.
“Together, we have a very strong track record of working effectively with other rail partners and infrastructure providers, as well as using cutting-edge technology to achieve a step change in customer service,” concluded Griffiths.
However, not everyone in the industry was pleased to hear of the French company’s interest in getting involved with the UK rail network.
Union RMT – which is currently locked in a bitter dispute with a number of rail operators, including Virgin – has stated that the bid is further proof of the French state making a “landgrab” for the franchise.
General secretary Mick Cash said: “This is yet another land grab on Britain's railways by the French state with SNCF and Richard Branson both realising that this new franchise will be a one-way ticket to the bank for whoever comes out on top in this latest UK rail lottery.
“The integrated HS2/West Coast operation has been bought and paid for by the British people and should be run by the British state in the public interest and not by some consortium of speculators looking to make a killing at the taxpayers’ expense.”
Today’s news comes almost five months after FirstGroup and Trenitalia announced they would too be submitting joint bids for both the new East Midlands and WCP franchises.
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