Category: Press Releases

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.

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

The Strategic Rail Authority (SRA) has signed heads of terms with incumbent Stagecoach Holdings plc as the preferred counterparty for the new South West Trains replacement franchise. Under the new franchise agreement, a total of £1.7 billion will be committed over the first 15 years to implement much needed changes on this intensively used and overcrowded commuter network.

Currently, around 2.5 million passengers use the South West Trains network every week.

The focus of the investment proposal is to allow growth in passenger demand, increase reliability and punctuality, improve levels of customer satisfaction and reduce overcrowding. Highlights of the deal include more and longer trains, infrastructure improvements including platform extensions, more frequent services, and station upgrades to facilitate interchange with tube and bus.

The SRA has negotiated a tough deal with Stagecoach to deliver extra capacity, higher performance standards and a step change in quality of service for passengers. The original franchise is due to expire in February 2003; the new franchise will operate for 20 years, with provision for shortening the term to 15 years if later capacity schemes are not implemented.

From the start of the new franchise, Stagecoach will be subject to substantially increased penalty payments for poor performance. They have committed to providing better customer service and improved punctuality and reliability, and within the next ten years, aim to run 15 out of 16 trains on time each day, the equivalent of running 93.75% of all trains on time.

Stagecoach has committed, over the remainder of this year, to introduce new trains, take steps to improve security, accelerate training for staff, and improve customer information and to implement a range of other initiatives.

Safety

In line with the Health and Safety Executive’s requirement Stagecoach will replace all Mark 1, slam door rolling stock by 31 December 2004. All rolling stock in use after 2003 will be fitted with Train Protection and Warning System (TPWS). Stagecoach is committed to ensuring further continuous safety improvement.

Within the heads of terms, Stagecoach has detailed a set of schemes, which are intended to provide the users of South West Trains with the following benefits.

Early Benefits (by 2004)

• Investment in 800 new vehicles to replace the ageing Mark 1 stock by 2004, to increase the fleet and to help relieve overcrowding
• Stagecoach will undertake a programme to lengthen platforms at Waterloo and throughout the suburban system to allow the use of 10-car trains in place of the current 8-car trains. This will increase the peak capacity on most suburban routes by 25% by the end of 2004
• A recast timetable on the Windsor and Reading lines to provide 14 extra trains in each peak and give 15 minute service frequency on the Suburban lines through Hounslow and Putney
• Doubling of the Portsmouth to Southampton service frequency and provide a new service between Southampton and a re-opened station at Chandlers Ford
• Integrated transport projects including three new Rail link buses from Waterlooville to Petersfield, from Yately to Farnborough and from Alton to Winchester via Alresford. Existing Stagecoach bus services in Hampshire and Surrey will be re-organised to provide a Rail Connections Network. Timetables will be changed to improve rail connections, and there will be through ticketing

Longer Term Benefits

• The re-development by 2007 of Clapham Junction, one of the busiest interchange stations on the railway network. The upgrade is designed to make the station more comfortable and convenient for local passengers and for those who change trains. There will be a new overbridge or upper concourse with lift or escalator access to platform level, passenger lounges and improved passenger shelter on platforms
• Improvements at Waterloo Station to provide for the safe and convenient circulation of a growing number of passengers
• Upgrading of Wimbledon and Vauxhall stations to improve interchange with the Underground
• A programme of investments in infrastructure designed to overcome major causes of delays to trains. The programme includes installing stronger rail and more reliable signalling components on the most critical sections of the network (between Waterloo and New Malden, and between Havant and Portsmouth)
• Stagecoach is committed to providing 3,400 new car park spaces by May 2006
• Bringing facilities at all stations up to an improved standard to increase passenger comfort and personal security. CCTV will be installed at all stations and linked to the British Transport Police management information control centre. Waiting areas will be improved and toilets will be provided at all staffed stations. Stagecoach is committed to a phased programme to provide disabled access to all platforms by 2014

Also contained in the document are a set of aspirations. These are projects that will be brought forward subject to feasibility studies, and, where appropriate, passenger growth.

Aspirations

• Introduction of 16 car trains on long distance routes by extending platforms at Waterloo and other stations (2006)
• Extension of platforms 1-6 at Waterloo for 12 car suburban trains (2009)
• Various infrastructure schemes to ease delays, including new platforms at Havant and Portsmouth and Southsea (End 2009)
• Introduction of double deck trains between Waterloo , Guildford, Basingstoke, Chessington, Hampton Court and Kingston
• Restoring passenger services between Bournemouth and Swanage and between Southampton and Hythe, as well as doubling the frequency of services between Weymouth and Poole

Chief Executive of the SRA, Mike Grant said:

“I am delighted to announce the Heads of Terms for this exciting new franchise deal with Stagecoach. South West Trains is one of the South East’s most congested networks. Everyday thousands of passengers use it and the number is still increasing.”

“I believe the Stagecoach deal includes significant passenger benefits and addresses the key issues that affect passengers at an early stage. It represents a commitment to help resolve capacity problems on the busiest rail network in Britain, while keeping disruption to services to the minimum. Stagecoach have learned lessons from their existing tenure, and acknowledge the need for further progress. Passengers can now look forward to a step change in customer service.”

“Investment is the key to improving the rail network, and as part of the deal, around £700 million will be invested in new trains, most of which are planned to be in service by 2004. A further £1 billion will be invested in new infrastructure to help ease congestion problems and to improve reliability.”

“The decision to select Stagecoach was a tough one. It was a highly competitive process, offering us a choice of strong proposals. However, we are confident we have made the right decision and I look forward to substantially improved performance from Stagecoach and the South West Trains franchise going forward.”

Chairman of the SRA, Sir Alastair Morton, said:

“With this decision for South West Trains, we have taken a crucial step in the franchise replacement programme described in our Strategic Agenda. I look forward to the SRA agreeing a number of others this year.”

“New investment is key to the success of the rail industry and rolling stock replacement plays a major part, as this deal demonstrates. I am pleased by the benefits generated from competitive bidding; in particular, Nederlandse Spoorwegen (Dutch State Railways) joined FirstGroup in submitting a very challenging bid. I hope we shall see more from them.”

“Change cannot happen overnight, but over the next few years passengers on the South West Trains franchise will see marked improvements to their service.”

The press release issued by HM Treasury on 9 May 2001.

The Strategic Rail Authority stated today that its evaluation of the latest proposals for the replacement franchise for the East Coast Main Line had not yet resolved all areas of concern. Specific issues outstanding include technical feasibility and value for money, financial risk and the extent to which proposals are deliverable while maintaining and improving services on this key long distance route. The two proposals are from GNER Holdings and Virgin Stagecoach.

The SRA is completing a detailed examination of both proposals before a final decision is submitted to the Government returned early in June. The replacement East Coast Main Line franchise is planned to be of 20 year duration and is as significant to Britain’s rail system as the West Coast Main Line franchise, held by Virgin Trains.

The final decision on the preferred bidder is not expected to affect progress on the upgrade of the East Coast Main Line infrastructure which, as already announced, will be a joint venture led by the SRA with Railtrack, the new franchise operator for the route when selected, and other private sector investors. Work on the upgrade is well under way.

The press release issued by the Strategic Rail Authority on 24 August 2001.

The SRA is working with new operators GoVia to ensure passengers receive a better journey experience on the intensive South Central commuter network. GoVia is expected to assume operation of the London to South Coast franchise on Sunday 26th August.

A series of major enhancements to boost capacity and improve service frequency and comfort, worth £1.5billion, are planned under a new 20 year deal being negotiated by the SRA. The change of operator follows a commercial agreement between GoVia and Connex Transport (UK) Ltd, on the remaining two years of the current franchise, which has run since May 1996.

Commenting on the changeover, SRA Chief Executive Mike Grant, said:

“This will be a first step towards future improvement for South Central’s passengers, many of whom daily experience both overcrowding and old rolling stock on this intensively used and capacity constrained commuter network. Substantial improvements will come about during 2002 when 400 of the 1,000 planned new modern vehicles are expected to begin to replace slam door trains

“Negotiations will continue between the SRA and GoVia towards a new 20 year franchise agreement. A total sum of £1.5billion investment is planned for the franchise, including major track upgrades on the main line to Brighton and the Arun Valley line”.