Spain^s Renfe to submit bids for UK rail franchises (Rail.co 24/11/2011)

[whole diary]

[JayMac]

From Rail.co:

Renfe, Spain^s national rail company, has said that it plans to submit bids for all the UK^▸ (United Kingdom) rail franchises that are due to come up for tender over the coming months.

These include ^prestigious^ franchises such as East Coast and Great Western.

Despite failing to be short listed for both the Greater Anglia and West Coast franchises, Renfe say that following talks with the DfT^» (Department for Transport - about) that outlined the reasons why the operator didn^t make it onto the list, they are now in a much stronger position to bid for future franchises.

Renfe^s chairman and chief executive Teofilo Serrano said:

^We need to operate in the UK as all the big state companies are here. There is very strong competition here but the system is good for operators. The refocus of the DfT on value for money gives us opportunities to deploy our experience.^

If Renfe was to be awarded a rail franchise it would assist them to enter the competition for the contract to construct and operate HS2^▸ (The next High Speed line(s)).

[EBrown]

Perhaps someone with more rail knowledge than me can answer this please, but what would the benefits be for passengers if Renfe (not FGW^▸ (First Great Western)) were awarded the franchise?

Also, what are the benefits for Renfe (other than contracts for HS2^▸ (The next High Speed line(s)))?

Thanks.

[eightf48544]

The question really should be what is the benefit of a franchise to the passenger in the first place? It's the  Wolmar question "What is franchise for?"

[Tim]

Perhaps someone with more rail knowledge than me can answer this please, but what would the benefits be for passengers if Renfe (not FGW^▸ (First Great Western)) were awarded the franchise?

Also, what are the benefits for Renfe (other than contracts for HS2^▸ (The next High Speed line(s)))?

Thanks.

I am not sure that there are any advantages for the passenger, but Renfe will presumably be looking to be making a profit.

Interesting to see so many state companies invloved in this.  They have an (upfair?) advantage over the likes of First in that they can probably borrow money for investment cheaper than a private company.