Category: Press Releases

The press release issued by the Strategic Rail Authority on 8 February 2001.

The SRA has reached agreement with National Express Group plc (NEG) to extend the Cardiff Railway, Wales and West, and the Great Northern services in the West Anglia Great Northern (WAGN) franchises, from the current termination date of 31 March 2001 to 30 April 2004.  This will ensure continuation of services until they can be transferred to the new Wales and Borders, Wessex and Thameslink franchises which are being negotiated under the SRA’s franchise replacement programme. The agreement contains provision for the existing franchises to be terminated when the new ones come on stream.

Under the deal, NEG has undertaken to restructure its operations in preparation for the new franchises.  It will combine the Welsh services of Wales and West with Cardiff Railway services to form the core of the new Wales and Borders; establish the remaining Wales and West services as the basis of Wessex; and prepare WAGN’s Great Northern services (from Kings Cross and Moorgate) for transfer to the Thameslink franchise.

NEG has also agreed to reorganise its Central Trains services in preparation for transfer of the mid Wales services to Wales and Borders at a time of SRA’s choosing.

Over the remaining tenure periods, NEG has committed to maintain services at levels in the 2000-01 timetable and has adopted improved customer service commitments. Operating subsidies have been set at levels intended to reflect the costs, responsibilities and risks involved in providing the services and carrying out the restructuring process.

The press release issued by the Strategic Rail Authority on 14 February 2001.

Railtrack Cost Increase Forces East Coast Main Line Review

The Strategic Rail Authority (SRA) has been informed by Railtrack of an increase in its cost estimates for the long-planned upgrade of the East Coast Main Line.  This line, on which the main inter-city express franchise (currently held by GNER until April 24, 2003) is up for replacement, has come to suffer from severe capacity constraints as traffic has grown rapidly since privatisation.  Upgrading the ECML has been accepted by all parties as a priority for some time and Railtrack has had a substantial design team working on it for nearly three years.

Mike Grant, Chief Executive of the SRA said:

“We are examining with Railtrack the details of these cost increases which could range between 20% and, if specific provisions for contingencies are included, nearly 100%. We have been asked by the Deputy Prime Minister to advise him urgently of the reasons behind this rapid increase in costs.  Obviously, this new information must now generate a pause in the refranchising process for the East Coast Main Line while we review the contents and causes of this increase from Railtrack.   We have informed GNER and Virgin/Stagecoach.”

The press release issued by the Strategic Rail Authority on 15 February 2001.

The next step towards establishing a new passenger rail franchise for Wales and Borders was taken today as the Strategic Rail Authority (SRA) shortlisted four parties to prepare Best and Final Offers.

The shortlisted parties are:

· Arriva plc (franchisee of Northern Spirit and Merseyrail) in conjunction with Connex Transport UK Limited (franchisee of South Eastern, and also South Central).

· FirstGroup plc (franchisee of Great Eastern, Great Western and North Western).

· National Express Group plc (franchisee of nine operations including Wales and West, Cardiff Railway and Central Trains).

· Serco Rail (division of Serco Limited, manage the Manchester Metrolink and other rail technical services).

When let, the franchise will comprise most services currently operated within Wales by the Wales and West, Cardiff Railways (ValleyLines), First North Western and Central Trains franchises

Mike Grant, SRA Chief Executive, said:

“This has been a very popular competition, with a good range of proposals received.  I anticipate a tough competition to operate this new franchise, and the SRA will be working hard to use that process to extract the best possible deal for passengers.”

“The SRA has pressed hard over the past couple of months to separate those services that will transfer to the new Wales and Borders franchise, and to enable them to operate  together from later this year as an interim arrangement.  This is intended to simplify the transition for passengers and staff, paving the way for the creation of the new franchise”.

The press release issued by the Strategic Rail Authority on 2 March 2001.

The next step in the development of the Wessex franchise was taken today, as seven parties passed the SRA’s qualification process to submit proposals for the new franchise, designed to meet the growing demand for rail services in South West England.

The franchise has been designed to attract new investment and provide management focus on the important interurban and local services in the West Country, as well as improving cross country links between the region, Cardiff and the South Coast.

The companies / consortia confirmed as eligible to submit proposals are:

Connex Transport UK Limited (owners of the South Eastern franchise and current owners of South Central)

First Group Plc (owners of Great Eastern, North Western, and Great Western)

GB Railways Group Plc (owners of Anglia Railways)

Group 4 Falck Global Solutions Limited (new to rail franchise operation)

National Express Group PLC (owners of nine franchises – Central Trains, Cardiff Railway, Gatwick Express, C2C, Midland Mainline, ScotRail, Silverlink, Wales & West, WAGN)

SBB Laing – a partnership between Swiss Federal Railways and John Laing Investments Limited (Laing are the major shareholder in M40 Trains Limited, which is the preferred counterparty for the new Chiltern franchise)

Stagecoach Holdings plc (owners of South West Trains and Island Line and 49% shareholder in Virgin Rail Group Limited)

In addition, Virgin Rail Group Limited and First Group Plc will be separately submitting proposals to add the Cornwall & Plymouth Business Unit to their CrossCountry and Great Western franchises respectively, in competition with the Wessex propositions for these services. Individual lines within this Unit might be operated by locally based ‘micro-franchises’ – involving local interests linked with a parent franchise operator – subject to safeguards protecting safety, service reliability, and network benefits.

Mike Grant, Chief Executive of the SRA said:

We have assembled a highly competitive field to bid for this exciting new franchise.

I expect a keen competition to provide the best overall package of investment, service enhancements and improved provisions for passengers, plus value for money for taxpayers.

In evaluating proposals for this franchise we will take into account the potential benefits a neighbouring franchise-owner could add – however, a ‘solo’ or ‘free standing’ proposal is just as likely to win.

Prequalified companies will have 60 days in which to prepare detailed initial proposals, following which a shortlist will be invited to participate further in the replacement process.

The press release issued by the Strategic Rail Authority on 2 March 2001.

Two important developments affecting the future strategic direction of Britain’s railways were announced by the SRA today.

East Coast Main Line

The Strategic Rail Authority has informed Ministers, and then the two counterparties for the Intercity East Coast franchise – Virgin/Stagecoach and GNER – that it has satisfied itself there is no need to continue the pause in the process of selecting the preferred counterparty for the proposed new 20-year franchise to replace the existing short-term franchise held by GNER.

On 14 February the SRA announced the pause following receipt from Railtrack of a range of higher cost estimates for the proposed upgrade of the East Coast Main Line (ECML). The purpose of the pause was to allow the SRA and its advisers to examine closely those new estimates, seeking to reassure the SRA that the upgrade at the heart of the proposed new franchise remained value for money.

The SRA’s Chairman, Sir Alastair Morton, wrote to the Deputy Prime Minister on Tuesday, 27 February – the day before Wednesday’s tragic accident in South Yorkshire – to report to him on the findings of that examination. He informed Mr Prescott that the escalation of the comparable core costs of the upgrade was less than 20%, with other costs reflecting a range of options unlikely to be accepted by the SRA and therefore could be excluded from the core project under consideration.

Adding in those options, said Sir Alastair, “plus fees and contingencies upon contingencies” would appear to double last year’s estimate. He cited as an example the option to spend hundreds of millions north of Newcastle for marginal increases in capacity to Edinburgh, together with a marginal reduction in journey time.

Accordingly, the contest between Virgin/Stagecoach and GNER for the new franchise is now as it was before 14 February. Early in December, the SRA, as required under statute, requested the approval of the Deputy Prime Minister for its confidential recommendation of a preferred counterparty.

Strategic Agenda

The Board of the Strategic Rail Authority yesterday approved the printing and publication of the SRA’s ‘Strategic Agenda’. Once printed, arrangements will be made for distribution to the media and stakeholders in Britain’s railway system.

The press release issued by the Strategic Rail Authority on 19 March 2001.

Britain’s best performing railway has been granted a two year franchise extension by the Strategic Rail Authority (SRA). Agreement has been reached to extend the existing Island Line franchise with the present operator – Stagecoach Holdings plc – for a further two years to 27th September 2003. Originally the franchise had been due to expire on 12 October 2001.

Under the new contract, all existing service patterns will remain the same and improvements have been made to the Passenger’s Charter. Under the new terms, a full refund will be available for delays of 30 minutes or more and for two consecutive train cancellations. The refund would include the ferry and mainland train service portions of the fare.

The punctuality benchmark for Charter claims has been changed, resulting in a lower trigger for refunds for season ticket holders.

This extension will guarantee rail services on the Island, while an independent study is completed to determine the future means by which rail services can be provided. Gibb Consultancy has been commissioned on behalf of the SRA to examine options for provision of future rail services, looking at the level of use and likely growth.

SRA Chief Executive, Mike Grant commented:

“I am delighted we have secured this deal with Stagecoach, particularly the benefits we have agreed under the Passenger’s Charter. I am sure they will continue to deliver a good service for passengers on the Island until the end of the franchise in September 2003.

The study we have commissioned will help inform our consideration of the long term future for the Island Line and we will also draw on the views of those who attended the recent Rail Passengers Committee conference held at Ryde. The SRA will review the options in consultation with the Isle of Wight Council and the Rail Passengers Committee to ensure a quality rail transport system is available.”

The press release issued by the Strategic Rail Authority on 21 March 2001.

The Strategic Rail Authority (SRA) took a further step towards the creation of a Northern franchise today by agreeing with FirstGroup plc and the Greater Manchester, West Yorkshire and Merseytravel Passenger Transport Executives to amend the existing North Western Franchise.

Under the terms of the agreement, First North Western will separate the operation of their services and terminate the franchise, as required, to aid the creation of three new franchises – TransPennine Express, Wales & Borders and Northern. The agreement will assist the SRA in setting up these franchises and is designed to make the transfer of services as smooth as possible.

In addition, the SRA will receive £37 million from First North Western in return for a revised franchise payment profile. This has been designed to ensure that the current level of services can be maintained and properly resourced until the new replacement franchises are let.

Mike Grant, Chief Executive of the SRA, said:

“This marks a further step up in the momentum of the SRA franchise replacement process. The agreement with FirstGroup and the PTEs seeks to ensure that current service levels are maintained, while the SRA restructures in preparation for its new TransPennine, Wales & Borders and Northern franchises.

All three franchises are designed to provide a superior service for new and existing rail passengers and I look forward to further progress on each of them in the coming months.”

The press release issued by the Strategic Rail Authority on 2 April 2001.

The Strategic Rail Authority today announced that it would establish a Joint Venture to take forward the upgrade of the East Coast Main Line from London to Yorkshire, North East England and Scotland. The SRA will lead the Joint Venture, whose members are expected also to include a project management company, the future train operator, Railtrack and external investors. The Joint Venture is consistent with the objectives set out in the SRA’s recently published Strategic Agenda, and will remove the responsibility of managing the East Coast Main Line upgrade and the burden of funding its costs from Railtrack. This fundamental change to the financing of the upgrade, compared with the original franchise proposition, means that both shortlisted counterparties will need to review their original proposals and indicate how they could participate in the Joint Venture. (The Counterparties are GNER Holdings and Virgin Stagecoach.) Subject to discussion with the parties, the SRA will ask for their response by 17th April. Following consideration and consultation with Ministers, the SRA will then announce the preferred bidder for the East Coast franchise.

SRA Chief Executive Mike Grant said:

“This major upgrade project is designed to provide extra capacity, reduce journey times and increase reliability on the route. It requires a public/private partnership to provide the necessary resources. As we said in our Strategic Agenda, ‘Railtrack cannot do it all, and the SRA needs to work with Railtrack and others to line up the resources of management as well as finance, needed to supply a safer, better and bigger system”.

“The East Coast Main Line upgrade will make a significant contribution to the SRA’s growth targets of 50% in passenger kilometres and 80% in freight tonne-kilometres by 2011 . We think it appropriate, in view of the introduction of a Joint Venture structure, to invite the shortlisted bidders to review their proposals, but today’s announcement ensures that the East Coast Main Line upgrade can be progressed to deliver increased capacity and alleviation of bottlenecks on the route”.

The upgrade scheme follows on from Phase 1, the upgrade of Leeds station and related works. It is currently being implemented and can be summarised as follows:

• Phase 2 (completed by 2006)	Remodelling of Peterborough Station
	New platform at London Kings Cross.
	Development of alternative freight lines to provide more capacity
	– between Peterborough & Doncaster via Lincoln
	– Doncaster – York
	– Northallerton (North Yorkshire)
	– Leamside Line reopening (Tyne & Wear)
	– Additional track capacity, with freight loops, between Newcastle and Edinburgh.
• Phase 3 (2008)	Hitchin flyover to relieve bottleneck, new flyover at(2008) Newark to replace flat crossing. Remodelling and flyover at Doncaster, and various power and junction upgrades.
• Proposed Phase 4 (2010)	Additional viaduct at Welwyn to relieve bottleneck. Completing the four tracking between Hitchin and Peterborough. Further power upgrades.

 

The press release issued by the Strategic Rail Authority on 2 April 2001.

New trains, more car parking and bus/rail integration are in a package of improvements on the Chiltern franchise announced today by the Strategic Rail Authority (SRA).

The SRA has acted to bring in the benefits, planned as part of a new franchise agreement being negotiated with Chiltern Railways, to ensure that passenger benefits do not have to wait for the new 20 year contract to be finalised.

The sSRA announced in August 2000 that it had signed a ‘Heads of Terms’ agreement with current Chiltern owners M40 Trains, for a new 20 year franchise. Progress towards signing the final contract has been delayed by the need for Railtrack to carry out further development work and provide detailed cost estimates for the proposed infrastructure upgrades.

Today’s agreement secures the following passenger benefits for the year 2001/02:

• The ordering of an additional seven coaches to cater for growth.
• Provision of an additional 580 parking spaces through extensions of 7 station car parks.
• Extension of some peak London to Birmingham services to Stourbridge Junction from May 2001.
• Improved bus/rail integration at Bicester and Solihull/Dorridge.
• Improved representation for stakeholders (grants for user groups and introduction of an Advisory Board).
• Tougher incentive regimes for performance and higher standard requirements for customer satisfaction.
• Development work to continue on infrastructure upgrades along the route.
• Development work to continue on plans to upgrade High Wycombe station, provide level access to all Chiltern stations, and improve passenger information and security.

SRA Chief Executive Mike Grant said,

“Today’s announcement is good news for Chiltern passengers, who will soon see the first benefits of the franchise replacement process with improvements to their service. The SRA intends to sign a new long term franchise contract with M40 Trains as soon as possible, but today’s announcement means that the early benefits of that new contract will remain on schedule”.

The deal has been set out in a new Deed of Amendment to the existing seven year franchise. In order to assist in the implementation of service improvements, support levels due to be paid under the new franchise contract have been brought forward for inclusion under the current agreement. A one-off payment is being made to Chiltern of £2.4million for 2000/01; the total additional subsidy for the year 2001/02 will be £5.1million. These payments are in line with those agreed at the time of signing Heads of Terms.