26.03.13
Virgin Trains contract to be extended to 2017
The Government has published its franchising programme, which is now restarted following the cancellation and delay of many franchises last year.
Virgin Train’s contract to run services on the West Coast Main Line has been extended again, by almost two and a half years, to April 2017.
The new East Coast franchise competition will begin immediately, with services to begin running in February 2015. The route has been run by the state-owned Directly Operated Railways since November 2009, after previous operator National Express reneged on its contract.
Extensions have also been granted to 13 of the 16 existing franchises, to avoid having to re-let more than three or four contracts per year. The first to be re-let are Thameslink, as a management contract for up to eight years, and Essex Thameside, by September 2014.
The Great Western franchise will also be re-let as a management contract instead of a franchise, following a recommendation in the Brown review. Management contracts see operators paid a fixed sum to operate services, rather than taking on some of the risk in return for a share of the profits.
Passengers’ views on train company performance will play an enhanced role in deciding whether to continue an operator’s contract, the DfT stated.
The DfT also identified three stations most likely to be built via the New Station Fund; Ilkeston in Erewash, Pye Corner in Newport, and Lea Bridge in Walthamstow. The final announcement will be made in May.
A Franchise Advisory Panel, headed by Richard Brown, is being set up to provide independent advice on franchising to support the DfT.
Transport secretary Patrick McLoughlin said: “This programme is a major step in delivering tangible improvements to services, providing long-term certainty to the market and supporting our huge programme of rail investment. Above all, in future franchise competitions we are placing passengers in the driving seat by ensuring that their views and satisfaction levels are taken into account when deciding which companies run our railway services.
“Franchising has been a force for good in the story of Britain’s railways, transforming an industry that was in decline into one that today carries record numbers of passengers.”
Richard Brown, chairman of the newly formed Franchise Advisory Panel, said: “It is clear to me that this announcement represents an opportunity for government to seek competitive and innovative proposals from the existing train operating companies and potential new market entrants to demonstrate how they will continue to improve services for passengers.
“The clarity around the franchise programme will also allow fresh energy to be brought to the urgent task of developing closer partnerships with Network Rail to drive out costs from the industry and provide a better deal for passengers and taxpayers.”
Graham Smith, director-general of the Rail Delivery Group, said: “A restart of the franchising programme, a transparent procurement process and clarity on what government wishes the passenger railway to provide will all help re-establish confidence and enable franchisees to deliver improved services for passengers.”
Sir David Higgins, chief executive of Network Rail, said: “Our goal is to work with the rest of the industry to provide a safer and more efficient railway which addresses the underlying issues of capacity and performance. The clarity provided in today’s statement is welcome in helping us achieve that goal.”
The full timetable for the franchising programme is available here.
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