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Author Topic: Letting of the next franchise for trains in Wales  (Read 1697 times)
grahame
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« on: August 13, 2017, 08:15:27 PM »

From Wales Online

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A dispute between the governments in Cardiff Bay and Westminster risks throwing into jeopardy plans to bring in a new rail operator in Wales next year, we have learned.

WalesOnline has obtained a letter from UK Transport Secretary Chris Grayling blaming civil servants in Cardiff for failing to address major issues needed to move forward with the new franchise, whose operator would be responsible for implementing key parts of the Welsh Government’s ambitious vision for rail services in Wales.

New rolling stock, electrification of the Swansea, Valleys and North Wales lines, a South and North Wales Metro and widespread structural improvements are all priorities for the next 10 years under the next Wales and Borders franchise.

The Welsh Government has already put back its plan to formally launch its search for a new operator by six weeks from this Friday, August 18, to September 26.

It has warned that further delays to the franchise, which does not include mainline high-speed services, could cost “tens of millions of pounds”.

Yet the major unresolved issues detailed in Mr Grayling’s letter, which he says make the “scale of the challenge” clear, raise questions over whether the new date is achievable.

Welsh Conservative transport spokesman Russell George described the letter as “damning” and warned that commuters “are going to pay the price”.

“The timeline for completing the next franchise seems some distance away,” he said.

Mr Grayling’s letter is a response to Welsh Economy and Infrastructure Cabinet Secretary Ken Skates who blamed the UK Government when he revealed the six-week delay in June.

In the letter (reproduced in full below), Mr Grayling refuses to go along with the Welsh Government’s request to allow him to issue the final documents needed before the the bidding operators can submit their proposals.

He writes: “I recognise your concerns regarding the timings of the tender process. But I hope you understand that I cannot cut corners on the level of information or assurance required... to do so would present significant risk to Network Rail, taxpayers and most importantly the passengers served by the Wales and Borders franchise.”

He refuses to accept Mr Skates’ claim that the holding of the General Election was to blame for the delay and says his officials warned Welsh civil servants on May 26 that the major issues still to be agreed meant their planned timeframe was unachieavable.

He cites seven areas that are still unresolved, including:

* A finalised written document setting out how the transfer of ownership of the Core Valleys Lines has not been received, and the Welsh Government and Network Rail are in dispute over the plans;
* Welsh and UK civil servants have not agreed a protocol over how the Welsh Government will exercise powers over English railways stations served by the Wales and Borders franchise;
* The Welsh Government is asking for an extra £1bn over the course of the franchise for which Mr Grayling says “I see no basis”;
* There remains a dispute over payments [the letter does not make clear the nature of the payments].

The letter also refers to other issues that remain to be agreed including a “funding and outputs principles document” and an agreement on how Welsh Ministers will undertake their “operator of last resort” responsibilities”.

The new operator is due to take over the franchise currently run by Arriva Trains Wales from October next year.

Four companies, including Arriva, have been shortlisted for the franchise and for the right to create and run a new south Wales Metro system.

Who are the bidders?

1. KeolisAmey is a joint venture between French transport giant Keolis and public service provider Amey.

2. Arriva Rail Wales is a bid from Arriva Trains Wales which is the current holder of the Wales and Borders franchise which runs until October 2018. It is owned by Deutsche Bahn.

3. Hong Kong-based MTR Corporation is one of the world’s leading transport companies with interests globally from Australia to Sweden.

4. Abellio Group operates bus and rail networks across Europe and is the international arm of the Dutch national rail operator.

The proposal includes elements that are proving controversial including the change of ownership of the Valleys Lines infrastructure.

The RMT union has claimed that the transfer of ownership is simply a £5bn privatisation, which it has described as appalling.

And Mr Grayling’s letter makes clear that Network Rail and the Welsh Government have not agreed who will be responsible if something goes wrong.

Mr Grayling concludes his letter by saying: “I will ensure my officials continue to do everything they can to support the process and enable the necessary agreements to be concluded as quickly as possible to ensure we deliver a satisfactory arrangement for passengers.”

When approached for comment a Welsh Government spokesman said: “We have received this letter and are considering its contents. We will respond in due course.”

The Welsh Conservative shadow Economy and Transport Secretary Russell George said: “This letter is damning and appears to suggest that the Welsh Government hasn’t fulfilled its role.

“Sadly, it’s the commuters which are going to pay the price and they will be extremely worried that.

“The UK Government has provided a long list of incomplete and unfulfilled tasks, and we must now look to the Welsh Government for its response.

“It is vital that a project of this importance and scale is done properly.

“Cutting corners at this point would be an unacceptable risk to Network Rail and the taxpayers who depend on the rail network in Wales.”
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Chris from Nailsea
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« Reply #1 on: August 16, 2017, 05:32:13 PM »

Interesting that all four bidders are based 'overseas' - in the post Brexit world.  Roll Eyes

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welshman
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« Reply #2 on: October 30, 2017, 06:40:56 PM »

ATW have today announced that they are withdrawing from the bidding for the 2018 franchise.
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Rhydgaled
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« Reply #3 on: October 30, 2017, 08:57:48 PM »

ATW have today announced that they are withdrawing from the bidding for the 2018 franchise.
I'm shocked; if I recall correctly Arriva were reported as having part-funded the lease on the micro-fleet of 769s into the early 2020s, why invest and then walk away? It's also a surprise because SARPA's latest newsletter had Abellio and Arriva as the only two bidders still in the running, I guess they were wrong. From various comments earlier in this topic (and maybe other topics/fourms), I can think of three possible reasons for Arriva pulling out:

  • 1. They are expecting a direct award and therefore it isn't worth them sinking any more funds in bidding, since a new contest will follow the direct award
  • 2. The Welsh Government / Transport For Wales is asking for something that Arriva does not want to offer in their bid, because they consider it too high risk
  • 3. Similar to (2.), Arriva consider the partial vertical integration of the south Wales metro too high risk

Possible reasons for a direct award could be a further delay to devolution of the franchising powers or the issue of Pacer replacement and TSI-PRM compliance for the class 153 and mark 3 fleets.
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ellendune
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« Reply #4 on: October 30, 2017, 09:10:00 PM »

An alternative explanation may come from Berlin. Perhaps DB have decided to pull out of UK franchises. 
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John R
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« Reply #5 on: October 30, 2017, 09:11:41 PM »

Alternatively they wish to concentrate their efforts on one or more up and coming franchise bids that they feel they have a better chance of winning or for which the rewards are higher.

The efforts involved in a bid, and the costs involved are very substantial. And there will be a limited capacity to take on multiple bids concurrently.

All these are of course pure speculation, and we will probably never know.  And even if Arriva do make some comment in due course, it may not be the whole reason.
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stuving
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« Reply #6 on: October 30, 2017, 10:34:21 PM »

This is ATW's own statement:

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Arriva Trains Wales Statement - Wales and Borders franchise

30 October 2017
Tom Joyner, Managing Director of Arriva Trains Wales said:

“We have been notified that Arriva Group have withdrawn from the bidding process for the next Wales and Borders franchise.

“Our key priority following this announcement is to continue to focus on the delivery of our services for the people and communities that depend on us for the remainder of the current franchise, including a £1m Arriva Trains Wales investment in additional trains which will be introduced in 2018.

“We will continue to work closely with our government and industry partners to support them with the delivery of their priorities.”

Note: Tom Joyner himself has only been with Arriva since 2nd October - four weeks!
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Timmer
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« Reply #7 on: October 31, 2017, 08:07:21 AM »

Think it sums up the Franchise process, very expensive and in some cases not worth bidding for anymore.
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SandTEngineer
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« Reply #8 on: November 27, 2017, 02:46:53 PM »

The franchising transfer agreement has been published today (27/11/2017):
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/662188/wales-and-borders-agency-agreement-2.pdf
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Chris from Nailsea
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« Reply #9 on: December 03, 2017, 02:25:41 AM »

An alternative explanation may come from Berlin...

Cue Neville Chamberlain ...  Roll Eyes

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William Huskisson MP was the first person to be killed by a train while crossing the tracks, in 1830.  Many more have died in the same way since then.  Don't take a chance: stop, look, listen.

"Level crossings are safe, unless they are used in an unsafe manner."  Discuss.
grahame
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« Reply #10 on: December 03, 2017, 07:20:44 AM »

Not sure I have seen the comment elsewhere (but then I'm not a great follower of Welsh affairs) - but it was suggested to me that the Welsh franchise bids were for a contract to include responsibility (operational and financial) for maintaining the line, including such elements as repairs to infrastructure that failed.

Making a comparison, had there been a similar contract in place, Great Western would have been responsible for repairing the saw wall at Dawlish when it failed.
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TaplowGreen
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« Reply #11 on: December 03, 2017, 08:55:23 AM »

Not sure I have seen the comment elsewhere (but then I'm not a great follower of Welsh affairs) - but it was suggested to me that the Welsh franchise bids were for a contract to include responsibility (operational and financial) for maintaining the line, including such elements as repairs to infrastructure that failed.

Making a comparison, had there been a similar contract in place, Great Western would have been responsible for repairing the saw wall at Dawlish when it failed.

..............can you imagine GWR on that one? "More sea walls than usual are currently needing repairs"  Cheesy
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