FirstGroup win: Extra year for Transpennine service - The Scotsman

[whole diary]

[JayMac]

From The Scotsman:

FirstGroup has agreed a contract with the Department for Transport for its joint venture Transpennine Express rail franchise to run for a further year until 2016.

First Transpennine Express has operated the service for the last ten years and the extension to next April will take the franchise up to the date when the UK^▸ (United Kingdom) government will then award a new long-term contract for the route.

The current inter-city franchise carries 26 million people a day between the North West, Yorkshire and the north east of England and into Scotland.

It is a joint venture between Aberdeen-based FirstGroup, which controls 55 per cent of the operation, and French transport group Keolis.

FirstGroup said ^330 million had been invested in new trains and station improvements since 2004, adding that passenger journeys had doubled to 26 million during that time.

Chief executive Tim O^Toole said: ^This agreement provides continuity and consistency for First TransPennine Express passengers ahead of submitting our bid for the new franchise.^

Of the ten franchises up for re-tendering during this parliament, only three have actually completed the process - London, Tilbury & Southend (c2c), Thameslink, Southern & Great Northern (Govia Thameslink Railway) and Intercity East Coast (Virgin Trains East Coast). One of those three was a re-privatisation. The remaining seven have all been gifted extensions regardless of performance. They are:

• Greater Anglia (Abellio Greater Anglia). Due to end July 2014, extended to 15th October 2016
• East Midlands (East Midlands Trains). Due to end 31 March 2015, extended to 14 October 2017.
• Greater Western (First Great Western). Due to end March 2013 (after First Group's decision to exercise the contract break clause), extend three times(!) to March 2019.
• Transpennine (First Transpennine Express). Due to end 31st January 2012, extended twice to April 2016.
• Northern (Northern Rail). Due to end September 2013, extended to 4th February 2016.
• Integrated Kent (Southeastern). Due to end 31st March 2014, extended to June 2018.
• Intercity West Coast (Virgin Trains). Due to end 8th December 2012, extended twice to 31st March 2017.

That's a great advertisement for the UK's brand of rail privatisation. Not.

Remind me again. What is rail franchising for?

[IndustryInsider]

26 million people a day?  No wonder the Class 185s are struggling... 

[4064ReadingAbbey]

The reasons behind rail franchising have been explained time and time again.

The current concept of franchising train operations bears little resemblance to the model originally set up by the 1993 Act except for the name. The biggest change was that brought about by the short-lived Strategic Rail Authority set up by John Prescott. The micro-managers employed by Richard Bowker moved smoothly into the Department for Transport as the SRA^» (Strategic Rail Authority - about) was wound up.e

Franchising enables civil servants and Government (of any colour) to avoid the flak after they've screwed up and upset the customers by hiding behind private companies. Thats why the private companies are allowed to syphon off the extortionate profits they make - as a quid pro quo.

[Red Squirrel]

Just to be clear: Would that be the extortionate 3% that they take for shareholders such as my pension fund?