SWR - next steps beyond March 2021

[whole diary]

[grahame]

By email (circular  ) from Mark Hopwood

FirstGroup has this morning announced an agreement on the next steps for SWR^» (South Western Railway - about), which moves us into negotiation with the Department for Transport on a new longer-term directly awarded management contract that will follow the end of the current ERMA in March 2021. The DfT^» (Department for Transport - about) have indicated that the new National Rail Contract would last to 1 April 2023 with the possibility to extend for a further 2 years. As per our agreement entering into the ERMA on 20 September this agreement was to be expected.

Commenting on today?s announcement, FirstGroup Chief Executive Matthew Gregory said:

"We welcome this agreement, which marks a further evolution of the contractual framework for our SWR and Avanti train operating companies, both in the context of providing resilient services throughout the coronavirus pandemic and also a more sustainable long-term approach. These new directly awarded management contracts will focus on passengers and operational performance, with a more appropriate balance of risk and reward. We look forward to working constructively with the DfT to make this a reality, and to use our expertise and understanding of the needs of our customers to deliver improvements that we know passengers want."

The full statement can be read on the FirstGroup website.

Edit to correct year on title

[JayMac]

Shouldn't thread title read 2021? 

[grahame]

Shouldn't thread title read 2021? 

Yep!

[stuving]

The National Rail Contract referred to above was to run from 2021 to 1st April 2023. There was provision for a two-year extension, and that has now been agreed. From Railnews:

In January 2020, transport secretary Grant Shapps admitted that the franchise was ‘no longer sustainable’, but the Covid-19 pandemic caused franchises to be suspended in March. After a period of Emergency Measures, the DfT^» (Department for Transport - about) granted a new SWR^» (South Western Railway - about) National Rail Contract to start from March 2021 and run until May this year. This will now continue until May 2025.

The terms of the contract mean that revenue is collected and costs are paid by the DfT, which gives the operator a performance fee, and FirstGroup said that ‘current contractual arrangements’ will continue.

First’s CEO^▸ (Chief Executive Officer) Graham Sutherland said: ‘We welcome the contract extension for South Western Railway, which enables us to build on the achievements of the first two years of the contract and continue improving the customer offering. We are committed to working closely with government and our partners to deliver a successful railway network that provides vital connections for customers and communities along the SWR route.’

I'm not sure why that says the current contract runs to May 2023, when the original announcement definitely said 1st April. However, that was published before the contract was signed. 

[stuving]

Yes, signing was indeed delayed, to 19th May. For once the dates are defined in the "definitions" appendix to text:

“Expiry Date”  means the later of:
(a) 01:59 on 28 May 2023; or
(b) any such later date that is specified by the Secretary of State pursuant to clause 2.3 (Amendment of Start Date/Expiry Date); or
(c) any such later date to which the National Rail Contract is continued in accordance with clause 2.2 (Additional Reporting Periods);

That refers to and from this bit of the main contract:

2. DURATION OF THE NATIONAL RAIL CONTRACT
2.1 This Contract shall expire on the Expiry Date or pursuant to Chapter 9.4 (Remedies and Dispute Resolution).
2.2 Additional Reporting Periods
(a) If the Secretary of State gives notice to the Operator by no later than 5 March 2023, the National Rail Contract shall continue after such date on the terms set out in the National Rail Contract for not less than one (1) and not more than twenty six (26) Reporting Periods following the date set out in limb (a) of the definition of Expiry Date, as the Secretary of State may stipulate.
(b) NOT USED.

Ooh, that's called a limb, is it?