Tag: Strategic Rail Authority

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

The Strategic Rail Authority (SRA) today gave the green light to re-starting the refranchising programme for passenger rail services, and at the same time invited expressions of interest for three new franchises.

SRA Chairman Richard Bowker said:

“Today’s announcement breaks the logjam and will help to stabilise and restore confidence within the rail industry. This ‘horses for courses’ approach means we can move forward quickly and secure some early benefits for passengers, while also putting in place plans for the medium to long term. The new policy has been extensively discussed with the industry and with Government, and is both practical and deliverable”.

The new programme provides clarity for train operators competing for franchises and is fully aligned with the Government’s new policy issued today. Designed to deliver the Government’s objectives of 50% growth and a reduction in overcrowding, the plans reflect the different needs of each franchise.

The policy provides a balance between short-term extensions and long-term commitments. Details are set out, franchise by franchise, in the Annex to this release. Clear guidance will be given to parties on the core requirements of a franchise, whilst leaving scope for innovation. Wherever franchises are replaced or extended, new contract terms will target provision of better facilities, higher performance incentives for operators and better compensation arrangements for passengers when things go wrong. Further details on the franchising programme will be set out in the SRA’s Strategic Plan, to be published on 14 January 2002.

The length of new franchises will depend, amongst other things, on the investment needs of the franchise and the level of risk to be borne by the franchisee. It is also very important to establish structures which allow good quality operators to take a longer term view of their business and the needs of their customers. Where long-term franchises are appropriate these are likely to be up to 15 years (in line with emerging EU requirements) but, crucially, will be dependent upon delivering operational performance targets. Because this represents a considerable development in franchising policy the SRA will be consulting with passenger committees and key stakeholders on the proposed franchise term. Franchises would end after five or ten years if the conditions were not met.

The SRA is also looking at the longer-term benefits of combining franchises and a simpler structure. In particular, where two or more franchises share access to a London terminal, combination might produce benefits for passengers. It may allow better use to be made of available capacity, and would simplify the timetable planning process and contractual relationships, with the aim of producing a more reliable, cohesive and attractive service for passengers. Over the next two months, the SRA will be consulting train operators, passenger committees, TfL and regional and local authorities on the value of combining franchises in such a way.
As a first step towards simplification, the franchise plan includes the creation of a ‘Greater Anglia’ franchise from 2004, through the grouping of Anglia, Great Eastern, and the “West Anglia” part of WAGN (Liverpool Street – Cambridge/Hertford/Enfield/Chingford) franchises. A separate management unit will be established in Norwich to ensure local accountability and focus on local services in Norfolk and Suffolk. Work will also start next year on drawing up plans for new trains for the Norwich – London service, to be procured once the new franchise is created in 2004.

Details of all the franchises are set out in the Annex below and in the attached list of franchised services. The Annex lists franchises for replacement and those for possible two-year extension, subject to negotiation of satisfactory terms which provide benefits for passengers and value for money for the taxpayer.

Also listed are the franchises moving to expiry, but short-term improvements here may be sought through the Rail Passenger Partnership fund or through contractual agreement with the franchisee.

The SRA is also restarting the new Wales & Borders franchise as a matter of priority, following discussions with the Welsh Assembly Government. Expressions of interest are being invited today. The Authority hopes to announce a preferred bidder by Autumn 2002, and to have a new franchise in place by early 2003.

Expressions of interest are also being invited today in the Northern and Merseyside franchises. Discussions are in hand with the Merseyside PTE and DTLR on the possible future transfer of responsibility for the Merseyside franchise to the PTE.

Interested parties should write to Nick Newton, SRA, 55 Victoria Street, London, SW1H 0EU, by 11 January 2002 (regarding Wales and Borders) and by 15 February 2002 (regarding the Northern and Merseyside franchises).

The press release issued by the Strategic Rail Authority on 16 January 2002.

The Strategic Rail Authority (SRA) today announced that it had concluded negotiations with GNER Holdings Ltd and its subsidiary Great North Eastern Railways Ltd for a two-year extension of its existing Inter City East Coast franchise, which links London to key cities in Scotland and the North East via the East Midlands and Yorkshire.

Some £100m of investment is being committed by GNER and its partners, delivering a number of significant ‘quick wins’ for passengers. Improvements include a planned 11 additional services between London and Leeds; £10m for station and passenger information improvements; better facilities for disabled passengers; improved performance, compensation & customer satisfaction regimes; and a minimum £16m contribution from GNER to infrastructure improvements. More than £50m is being committed by GNER to rolling stock, including the leasing of two additional train sets and six new recovery locomotives; refurbishment of all passenger carriages and the lengthening of the diesel High Speed Trains, expected to provide an additional 70 seats per train by the end of 2003. In addition, the investment package includes £20m to improve the reliability of the electric locomotives.

Today’s agreement extends the existing seven-year franchise by two years to April 2005, and follows the Transport Secretary’s invitation to the SRA in July 2001 to negotiate an extension.

Richard Bowker, Chairman of the SRA, said: “This deal requires no extra subsidy and is being funded entirely within the private sector. The improvements agreed today for delivery over the next three years will make a real difference to passengers along the whole of GNER’s route – with more comfortable, more reliable, more frequent and more spacious trains.

“This is the second piece of good news for passengers on this route, following the publication of our Strategic Plan on Monday, which confirmed that the SRA is prioritising the upgrade of the Line to provide a major increase in its capacity.”

GNER Commitments

Additional Leeds services from June 2002
GNER propose to divert and supplement its White Rose service to provide eleven extra one-way trains on the Leeds to London route each day. This has been a longstanding ambition for GNER and has been made possible by the ‘Leeds First’ engineering work and additional funding from the SRA.

£10m investment in station improvements by end 2003
Includes upgraded passenger lounges at York, Doncaster & Peterborough; refurbished subways at Doncaster, York & Darlington; additional customer information systems & ticket office windows, accessibility improvements, refurbished toilets, 450 additional car parking spaces and improved cycle storage facilities. All GNER stations will be brought up to DTLR ‘Secure Station’ standard, and most station car parks to AA ‘Gold Standard’ status.

Lengthening & improvements to all High Speed Trains (HSTs) by end 2003
Includes a number of alterations to locomotives to improve reliability and increase luggage and cycle space; some refurbishment of carriage interiors including seats, catering facilities and toilets; and improved facilities for the disabled. These trains are principally used on non-electrified routes to, Bradford, Harrogate, Hull, Aberdeen and Inverness.

Refurbishment of all Intercity 225 carriages by April 2005
Includes complete renewal of carriage interiors; improvement of ride comfort; rebuilding of all toilets; modernisation of restaurant cars; and improved facilities for the disabled.

Additional trains and recovery locomotives
GNER will lease two additional train sets – one from May 2002 and another in May 2003 – to maintain services during refurbishment and to replace the train lost at Great Heck. It will also replace its five recovery locomotives with six new or rebuilt locomotives, to ensure more rapid recovery of failed trains and the swift restoration of subsequent services.

Improved performance, compensation & customer satisfaction regimes
GNER is the first long distance high speed operator to commit to these new SRA standards. An improved incentive regime will require at least 81% of trains on time from April 2003, rising to 83% from April 2004. From April 2003 the company will introduce passenger refunds of 50% for lateness of 45-89 minutes, and full refunds for 90 minutes upwards. The SRA’s National Passenger Survey will be built into the contract from April 2003, which could require up to an additional £3.5m to be spent on customer satisfaction improvements.

East Coast Main Line Infrastructure
As part of today’s agreement, GNER will contribute £16m to be spent on East Coast Main Line (ECML) infrastructure works to improve performance and/or capacity. The detail of these works will be agreed in due course. The deal also includes a ‘benefit share’ of any excess profits from the franchise, which the SRA has committed to invest in ECML infrastructure improvements.

Driver Recruitment
The agreement commits GNER to a programme of driver recruitment to help overcome the current driver shortage within the rail industry.

The press release issued by the Strategic Rail Authority on 30 January 2002.

Steps to establish a new Wales & Borders rail franchise were resumed today with the announcement by the Strategic Rail Authority (SRA) of eight pre-qualified parties, listed below:

Arriva Trains Ltd
Connex Transport UK Ltd
FirstGroup plc
GB Railways Group plc
National Express Group plc
NS / Dutch Railways
Serco Ltd
Keolis SA

The franchise comprises local and regional passenger rail services in Wales and in the border counties.

Pre-qualified companies will have 60 days from mid-February to prepare detailed proposals, from which a shortlist will be chosen. These shortlisted counterparties will then be invited to submit their best and final offers, from which a preferred counterparty will be selected.

The SRA expects to announce its preferred counterparty in Autumn 2002 and to have a new franchise in place by early 2003.

Richard Bowker, SRA Chairman, said:

“I am delighted by the strong field that has assembled to bid for the franchise, which, yet again, illustrates the keen private sector interest in the railway. Having formed much of the Wales & Borders franchise in interim form last year from existing franchises, it is now for the SRA to deliver a new, long-term, all-Wales rail franchise. We are pleased to have the strong support of the Welsh Assembly Government and the Rail Passengers Committee for Wales in making this a reality. This long-term franchise will provide a new focus and identity for the railway in Wales.”

The press release issued by the Strategic Rail Authority on 31 January 2002.

A significant step has been taken towards achieving the goal, outlined in the Strategic Plan, of transferring the responsibility for the future management of the Merseyrail Electrics franchise to Merseytravel, the Merseyside Passenger Transport Authority and Executive.

John Spellar, the Minister for Transport, announced in Parliament today that he would take forward the proposal to exempt the Merseyrail Electrics franchise from the SRA franchising process, allowing Merseytravel to let the services as a local concession. The move provides the opportunity to gain the benefits of closer integration with other transport modes in Merseyside whilst retaining national rail network advantages, such as through ticketing and access to the National Rail Enquiry Scheme (NRES).

Subject to the successful passage of a Parliamentary Order, it is anticipated the successful bidder for the concession let by Merseytravel will assume control from the end of the current franchise on 2nd February 2003. The SRA is working closely with Merseytravel on the letting process.

Richard Bowker, Chairman of the SRA, said:

“The Merseyrail Electrics franchise is Merseyside’s commuter rail system. Its self-contained nature makes it uniquely suited to greater local control and accountability. It therefore makes sense that Merseytravel should take greater responsibility in order to facilitate better integration with their overall transport portfolio.”

Mark Dowd, Chair of Merseytravel, welcomed the announcement saying:

“This is great news for the travelling public on Merseyside. We can now move forward in delivering a first class railway system as part of our integrated public transport network which will be accessible to everyone.”

The press release issued by the Strategic Rail Authority on 7 February 2002.

The Strategic Rail Authority (SRA) today announced the start of formal consultations with Passenger Transport Executives (PTEs) on the specification for the new 15 year Northern Rail franchise, developed to provide a better pattern of regional and local services for passengers in the North of England.

The franchise has been structured by the SRA to focus on urban and rural services serving the whole of the North of England including the major population centres of Liverpool, Manchester, Sheffield, York, Leeds and Newcastle.

The SRA will now start formal consultation with the seven PTEs concerned on the detail and scope of the franchise. Once this process is completed, the pre-qualified counterparties will be asked to prepare proposals, taking account of the core franchise proposition and potential enhancement options identified during the consultation.

Welcoming the start of the process, Richard Bowker, SRA Chairman, said:

“We are pleased to be moving ahead with the Northern Rail concept, which the SRA has developed in tandem with its new TransPennine Express franchise. Northern Rail will deliver significant benefits to travellers in the North of England, with its focus firmly on the provision of urban and rural services. We are now moving forward to further refine the franchise proposition with the Passenger Transport Executives before inviting counterparties to compete to run this important new franchise”.

The press release issued by the Strategic Rail Authority on 18 February 2002.

Private finance will bring big benefits for passengers in a deal signed today between the SRA and M40 Trains, the owner of the Chiltern Railways franchise. Chiltern Railways will continue to run the service, which provides trains from London Marylebone throughout the M40 corridor to Birmingham, for up to 20 years. The agreement, which will lever in up to £371million of private finance over the length of the contract, will deliver increased capacity on the route and major benefits to passengers. A significant proportion of the investment package has been contributed by M40 Trains shareholder John Laing and the Royal Bank of Scotland.

SRA Chairman Richard Bowker, said:

” This is another good example of the private sector expressing confidence in the rail industry’s long term future. The agreement with M40 Trains will deliver increased capacity, both through infrastructure and rolling stock improvements, as well as improvements to stations and in customer service geared towards creating a 21st Century railway. Passengers can look forward to more seats, more trains, and a better all round journey experience.

“In our Strategic Plan we stressed the importance of delivering increased capacity in London and the South East, and today’s announcement will play its part in achieving that. Moreover, it will see the further development of the Chiltern route to Birmingham as a real alternative to the congested M40 motorway for business and leisure travellers, helping to deliver the modal shift envisaged in the Government’s Ten Year Plan.”

Contracted Improvements

Chiltern Railways are now contracted to deliver a number of improvements Highlights include:

• Restoration of double track between Bicester North and Aynho Junction to be commissioned in August 2002. This will remove the last single track bottleneck between London Marylebone and Birmingham Snow Hill, and enable an enhanced and more reliable timetable to operate. This will provide an alternative route for passengers travelling between London and the West Midlands whilst engineering work is taking place on the West Coast Mainline.
• 15 out of 16 trains to arrive at their destinations punctually and reliably – to be achieved from December 2003 (exceptions may be granted where infrastructure enhancement work is being undertaken);
• A programme for the delivery of 15 additional vehicles between September 2002 and May 2005 and a full refurbishment of all existing Class 165s for completion during 2004. This is in addition to 7 vehicles which are currently under construction. There is also a requirement to deliver as much additional rolling stock as is needed to meet demand – up to certain limits;
• Platform extensions at 13 stations to cater for longer trains to be delivered in two phases – starting in May 2002. More will follow when demand requires;
• Construction of a new depot in the London area, and extension of the existing depot at Aylesbury – to achieve better train reliability;
• Operation of through services between London Marylebone and Kidderminster from September 2002;
• A station improvement programme including customer information systems, enhanced passenger security, improved facilities for disabled passengers, and better accessibility to stations;
• Reopening of two new platforms at Birmingham Moor Street station;
• A commitment to undertake the project management of a train protection pilot scheme on behalf of the industry in response to the recent Uff/Cullen report – subject to agreement from Railtrack.

Planned Developments

• Chiltern have committed to implement infrastructure upgrades in the London area, and between High Wycombe and Bicester North, which will allow more trains and improved journey times, subject to funding being available on acceptable terms. The funding of this scheme will be raised through a Special Purpose financing Vehicle (SPV) on which development work will take place over the next year.
• A project to reduce journey times and increase train frequency on the Metropolitan route between Marylebone and Aylesbury via Amersham will be developed and considered in March 2005 – in the light of the routing of Crossrail, and the SRA’s priorities;

Future Proposals

A package of potential future schemes is included in the contract, which might be developed further in the next few years. Included are infrastructure improvements between South Ruislip and High Wycombe, and other ideas for the longer term such as new parkway stations, the development of new routes, and a local service in Greater London – provided capacity is available.

The press release issued by the Strategic Rail Authority on 7 March 2002.

The Strategic Rail Authority (SRA) has agreed terms with National Express Group for changes to the franchises they operate, which will secure their future stability and bring benefits to passengers. In particular, the deal provides for the financial restructuring and future development of the heavily subsidised but loss making ScotRail and Central Trains franchises for the remaining two years of those franchises.

For passengers, the deal secures the future of ScotRail and Central Trains services. In addition, it ensures that passengers will continue to benefit from the protection of all of those additional services, which exceed the minimum level required in the Franchise Agreements, for the duration of the franchises. These additional service commitments mean that over three million additional train miles will be guaranteed on the Central Trains and ScotRail franchises. The deal also secures current levels of rolling stock for the remaining life of both franchises.

The SRA is to receive a cash payment of £59 million from National Express in return for a revised franchise payment profile on these two major regional networks. In securing this financial restructuring, the SRA has maintained the transfer of cost and revenue risk to the operator, except on those services provided to the specification of the West Midlands and Strathclyde Passenger Transport Executives, where revenue risk continues to lie with the PTEs. This will ensure that the operator continues to be incentivised to improve services to passengers, whilst ensuring that SRA and taxpayer interests are protected.

The deal will provide £115 million of additional subsidy across both franchises until their expiry in 2004. It includes clawback provisions to ensure that, where financial results are better than forecast, a share of the profits reverts to the SRA.

Both parties have also reached agreement on a range of outstanding issues arising from the National Express take-over of the franchising businesses of Prism Rail PLC in September 2000.

In reaching this settlement with National Express, the SRA has completed the financial restructuring of all regional franchises at the outset of the franchise replacement process. The settlement will provide a firm foundation from which the franchises can run to term, and then be extended or replaced in an orderly market process.

SRA Chairman Richard Bowker said:

“It has long been clear that the financial basis for the regional franchises was unworkable – a situation compounded by Hatfield and the foot and mouth outbreak, which affected tourism revenue. The SRA and National Express have worked together over the last six months to hammer out the right solution for this problem. Negotiations have been rigorous on both sides. I am convinced that the outcome is a great step forward for passengers, the SRA and the operators. There is now a firm basis on which to plan for the future development of the franchises before they are re let, or extended, on expiry in 2004, in line with the objectives of our Strategic Plan.”

The press release issued by the Strategic Rail Authority on 12 March 2002.

The Strategic Rail Authority (SRA) today began formal consultation on its proposal to combine rail franchises that share major London stations.

The SRA believes that reducing the number of franchises at some of these stations would make better use of existing capacity, improve punctuality, reduce complication for passengers and improve business efficiency. The policy was first proposed in December 2001.

Two separate but related consultation documents have been issued. The first document seeks views on the overall principle of reducing operators at the major London termini – either in the near future or in the longer term – and what impact it may have in each case. Stations considered are Paddington, Euston, Waterloo, Liverpool Street, Kings Cross, St Pancras, and Victoria. Consultees include the rail industry, the London Transport Users Committee, Transport for London and the Greater London Authority.

The second document seeks views on how this policy should apply specifically to the major London stations and franchises serving Western England. Regarding Paddington, views are being sought on the possible combination of the current Great Western and Thames Trains franchises. Regarding Waterloo, comments are sought on whether Waterloo to Exeter and Reading to Brighton services should remain with South West Trains, or be transferred to Wessex Trains as previously envisaged. Finally the document seeks views on the best long-term option for services currently operated by Wessex Trains if this transfer of routes does not take place. Consultees include the rail industry, Rail Passenger Committees, local and regional authorities and MPs.

Chris Austin, External Relations Director for the Strategic Rail Authority, said:

“We proposed this new policy in December because we believe that reducing the number of train companies, particularly those that share access to a major London station, can significantly improve punctuality as well as simplify the service to passengers. Over the next twelve weeks we will be seeking the views of passenger representatives, rail companies and other key players on these proposals. We will then weigh these views very carefully before moving the policy forward.”

The press release issued by the Strategic Rail Authority on 21 March 2002.

The Strategic Rail Authority (SRA) today announced that six parties have successfully pre-qualified as bidders for the Northern Rail franchise, which will operate urban and rural services across the North of England from 2003. The parties are:

ARRIVA Trains Limited
FirstGroup plc jointly with Keolis SA
National Express Group PLC
Connex Transport UK Limited
GB Railways Group Plc
Serco Ltd

The SRA is currently consulting formally with Passenger Transport Executives on the exact service specifications for the new 15-year franchise. Once this process is complete, the pre-qualified companies will be given 60 days to prepare detailed proposals, during which time the SRA will also consult with other statutory stakeholders. It will then select a shortlist of companies, who will be invited to submit their best and final offers. From these a preferred bidder will be selected, with whom a new franchise agreement will be signed.

Richard Bowker, SRA Chairman, said:

“The strong field that has assembled to bid for this key regional franchise again illustrates the enthusiasm and commitment to invest in the railway that exists within the private sector. This new, long-term franchise will provide a better management focus on urban and rural services across the North of England, bringing real benefits for passengers.”

The press release issued by the Strategic Rail Authority on 27 March 2002.

The Strategic Rail Authority today launched the process for pre-qualifying for its new Greater Anglia franchise (announced on 19 December 2001) which aims to combine the Anglia Railways and First Great Eastern franchises, and the West Anglia section of the WAGN franchise.

The SRA is currently producing a detailed specification for the new franchise, which will be issued to pre-qualified bidders, and will consult key stakeholders to ensure their views are taken into account.

Under the timetable published today, a series of consultation meetings with key regional passenger groups, local authorities and other regional stakeholders will start from 29 April. In addition, the SRA is inviting parties to pre-qualify for the Greater Anglia franchise, before the formal bidding process begins in Summer 2002 of this year, with a view to letting the new franchise by Summer 2003. The SRA intends to consult pre-qualified parties on the scope of certain enhancement options for the franchise.

SRA Chairman Richard Bowker said:

“Franchise consolidation, where there is close geographical proximity and a single London terminus, was a main theme of the SRA new franchise policy launched in December. Given the capacity pressures on Liverpool Street’s approaches, having just one operator, as opposed to three, makes good sense in operational and passenger service terms.

” We want to provide as much clarity as possible to bidders about what we expect the Greater Anglia franchise to deliver, and we want to ensure stakeholders have the opportunity to contribute their views, which is why we are starting a consultation process. The new Greater Anglia franchise needs to provide benefits both for passengers who use local and regional services and the many thousands of commuters who travel daily to the capital”.

A seamless transfer to the new franchise will be facilitated by an agreement reached today between the SRA and GB Railways to stabilise the financial position of the existing Anglia Railways franchise following the protracted losses suffered by the company since the Hatfield accident in October 2000.

Under the deal, the SRA has allocated £23.7 million of additional subsidy, which includes an immediate payment of £3.2million to Anglia Railways until March 2004 to ensure that its services continue to operate at current levels, with a provision for the SRA to share in any upside should the company perform better than forecast. In addition, the deal provides for the franchise to be terminated early, on 6 months notice, to facilitate the creation of the Greater Anglia franchise earlier than 2004.