GB Railfreight to continue with Caledonian Sleeper service as it moves into public ownership

GB Railfreight to continue with Caledonian Sleeper service as it moves into public ownership

The Caledonian Sleeper has moved back into public ownership after the cancellation of the contract of Serco – seven years earlier than expected.

The original Serco contract was due to run from 2015 to 2030, in a deal worth £800 million, however Serco had wanted to renegotiate the contract to put the loss-making service on a “more sustainable financial footing”

This move was unsuccessful and the Scottish Government then announced that the operator of the sleeper service would be moved into an Operator of Last Resort arrangement which will be operated through an arm’s length company.

Minister for Transport Fiona Hyslop said: “Today sees the start of a new era for the Caledonian Sleeper as the services come into public ownership, in line with our Operator of Last Resort duty.

“The decision to mobilise Operator of Last resort arrangements, announced to Parliament earlier this year, followed an extensive review and consideration of the options available to provide Caledonian Sleeper services beyond June this year, when the current franchise expires.

“This review was conducted against the background of substantial uncertainty regarding future market conditions and the pace and impact of the UK Government’s rail reform process.”

Following on from this news, GB Railfreight confirmed that it would continue to haul the Caledonian Sleeper coaches, in a new seven-year deal. Operating Class 92’s and Class 73’s to haul the service with the scope to incorporate GBRf’s new bi-mode Class 99 locomotives in the future.

Stadler Class 99 Bi Mode Train

It is hoped that the introduction of the Class 99 locomotive will significantly reduce the carbon footprint in the future.

John Smith, CEO of GB Railfreight, said: “This new partnership with Transport Scotland is another great example of GB Railfreight’s ability to deliver an excellent and reliable haulage service. As the iconic Caledonian Sleeper enters a new era, we are extremely proud to be working with Transport Scotland and look forward to continuing to deliver fantastic service to passengers for many years to come.”

Photo Credit: Istock

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