ScotRail franchise

[whole diary]

[JayMac]

From The Scotsman:

DUTCH rail firm Abellio is expected to be named tomorrow as winner of the next ^2.5 billion ScotRail franchise, industry sources have told The Scotsman.

The offshoot of Dutch national railways will take over the Scottish Government^s biggest contract to run most of the country^s trains for ten years from next April.

Current operator FirstGroup had been among five shortlisted bidders, along with National Express, Arriva and Hong Kong operator MTR.

Abellio operates three rail franchises in England, including Merseyrail and Northern Rail, which it jointly runs with Serco, which will run the Caledonian Sleeper - also from April.

One source said: ^It^s 100 per cent Abellio^.

Another said: ^They have been out and about with an air of confidence. All the talk has been about them.^

The firm have been the most mentioned of the five bidders in industry circles pretty much since the shortlist was announced last November.

Abellio was also the first to announce its interest in the franchise a year earlier, when UK^▸ (United Kingdom) managing director Dominic Booth said its experience and ^enormous pool of expertise^ well positioned it to run the franchise.

He added: ^Northern Rail in particular shares many of the characteristics of the ScotRail service.^

Rail boom

ScotRail has seen a boom in rail travel since the current franchise started ten years ago, with passenger numbers increasing by one third to 87 million in the year to March.

This is expected to continue to grow with further rail expansion, such as the re-opening of the Borders line next September, and longer and faster trains on the main Edinburgh-Glasgow route from 2016-19.

The Scottish Government^s Transport Scotland agency would say only that transport minister Keith Brown will make a ^major transport announcement^ at Waverley Station in Edinburgh tomorrow morning.

[TonyK]

I get Abelio confused with that horrible disease that is in all the news these days.

[anthony215]

If this is true then I think First will be going all out to retain the GW^▸ (Great Western) franchise when  it comes up in a couple of years.

[JayMac]

If this is true then I think First will be going all out to retain the GW^▸ (Great Western) franchise when  it comes up in a couple of years.

More likely five years, rather than a couple, before Greater Western is re-tendered. It wouldn't surprise me if, following this announcement from Scotland, First Group and the DfT^» (Department for Transport - about) are putting the signatures on the 5 year direct award contract for FGW^▸ (First Great Western) to 'carry on regardless', as we speak.

[JayMac]

The Scotsman appear to have got the scoop, but other news outlets are now running with story.

From the BBC^» (British Broadcasting Corporation - home page):

First Group 'to lose Scotrail franchise' to Dutch firm

FirstGroup currently holds the Scotrail franchise

Industry sources have told BBC Scotland that First Group is set to lose the franchise to operate ScotRail services.

An official announcement will be made on Wednesday by Transport Minister Keith Brown.

It is understood that the Dutch rail operator Abellio has won the ^2.5bn franchise.

It has already been announced that First Group, based in Aberdeen, is to lose the franchise to run Caledonian Sleeper services.

The company has been operating ScotRail services since August 2004.

ScotRail employs almost 5,000 staff and operates 2,400 train services every weekday.

The current franchise arrangements end on 31 March 2015. The new franchise will be for a term of up to 10 years.

FirstGroup had been competing against Abellio, Arriva, MTR, and National Express for the right to operate the service.

Strong suspicion that the stock image the BBC have chosen is not from Scotland. 

[BBM]

From the BBC^» (British Broadcasting Corporation - home page):

First Group 'to lose Scotrail franchise' to Dutch firm

Industry sources have told BBC Scotland that First Group is set to lose the franchise to operate ScotRail services.

An official announcement will be made on Wednesday by Transport Minister Keith Brown.

It is understood that the Dutch rail operator Abellio has won the ^2.5bn franchise.

It has already been announced that First Group, based in Aberdeen, is to lose the franchise to run Caledonian Sleeper services.

The company has been operating ScotRail services since August 2004.

ScotRail employs almost 5,000 staff and operates 2,400 train services every weekday.

The current franchise arrangements end on 31 March 2015. The new franchise will be for a term of up to 10 years.

FirstGroup had been competing against Abellio, Arriva, MTR, and National Express for the right to operate the service.

(sorry, just saw Bignosemac beat me to it!)

[Timmer]

A big deal for First to lose Scotrail with the big prize of East Coast set to be announced next month of which First stand a good chance of winning?

[JayMac]

I'm sure they'll be hoping so. They're down to two franchises now.

[John R]

(sorry, just saw Bignosemac beat me to it!)

But he wasn't the first to post the news. 

[JayMac]

I'll give you the scoop John R. 

I started posting the Scotsman story around 8.00pm, after a heads up on Facebook from a (until recently, Scotrail) train driver friend. Then I was waylaid by a telephone call from Mumsy.

[Red Squirrel]

I'll give you the scoop John R. 

I started posting the Scotsman story around 8.00pm, after a heads up on Facebook from a (until recently, Scotrail) train driver friend. Then I was waylaid by a telephone call from Mumsy.

Glad to see you got your priorities right!

[eightf48544]

Very interesting isn't Scotrail devolved to Scotland? isn't First Scottish?

So  after the vote Salmond is giving it to a Dutch company.

Still leaves the Wolmar question, "What is Feanchisng for?" open.

East Coast award now even more political.

[ellendune]

Ah but hasn't he put it back into the public sector.  Isn't it now a nationalised industry - albeit a Dutch one!

[ChrisB]

Confirmed. On the BBC^» (British Broadcasting Corporation - home page) website now

FirstGroup loses ScotRail franchise

FirstGroup has confirmed it has lost the franchise to operate ScotRail services from the spring of 2015.

An official announcement will be made on Wednesday by Transport Minister Keith Brown.

It is understood that the Dutch rail operator Abellio has won the ^2.5bn franchise to run services for 10 years.

ScotRail said it was disappointed FirstGroup's bid had not succeeded and it would work with the new franchisee to ensure a smooth transition.

It has already been announced that FirstGroup, based in Aberdeen, is to lose the franchise to run Caledonian Sleeper services.

'Credible plans'
 
The company has been operating ScotRail services since August 2004.

In a statement, FirstGroup chief executive Tim O'Toole said the firm was "very proud" of its success in operating First ScotRail.

He added: "We have kept our promises and more for 10 years, delivering record levels of service including during this extraordinary summer in Scotland with the Commonwealth Games and the Ryder Cup.

"Our bid would have delivered even greater levels of service and growth, and we are disappointed we will not have the opportunity to implement the credible plans we submitted, building on our record of improvement across every measurable score, for the benefit of ScotRail's passengers and employees."

The firm said it was still in with the Department for Transport (DfT^» (Department for Transport - about)) over the First TransPennine Express and First Great Western franchises.

ScotRail employs almost 5,000 staff and operates 2,400 train services every weekday. The current franchise arrangements end on 31 March 2015. The new franchise will be for a term of up to 10 years.

Union anger
 
FirstGroup had been competing against Abellio, Arriva, MTR, and National Express for the right to operate the service.

Union bosses reacted angrily to reports Abellio was to be handed the contract.

RMT^▸ (National Union of Rail, Maritime & Transport Workers) general secretary Mick Cash told BBC Radio Scotland's Good Morning Scotland programme: "We believe public ownership is better, is more efficient and it's safer and it gives you great accountability.

"All you're seeing in private ownership is that money's being sucked out of the industry and given to the private sector shareholders, or in this case is going to go to subsidise the Dutch railways."

Manuel Cortes, leader of the TSSA^» (Transport Salaried Staffs' Association - about) rail union, described the the possibility of an Abellio franchise as "a slap in the face for Scots rail passengers".

He said: "Only a few weeks ago, the Scottish people were promised the power to run a publicly owned railway which would put them first, ahead of private rail firms.

"Now the Scottish government wants to hand that railway to a firm run by Dutch state railways."

[JayMac]

First Group's full statement regarding the loss of ScotRail to Abellio:

PR^▸ (Public Relations) Newswire

London, October 8

                                                                 8 October 2014

                                FIRSTGROUP PLC

                         ("FirstGroup" or "The Group")

                        STATEMENT RE^▸ (Religious Education): SCOTRAIL FRANCHISE

FirstGroup, the leading transport operator in the UK^▸ (United Kingdom) and North America, has
been informed by Transport Scotland that it has not been awarded the new
ScotRail franchise.

Commenting, Tim O'Toole, FirstGroup's Chief Executive, said:

"We are very proud of our success in operating First ScotRail and our team were
recognised last week, once again, as Rail Operator of the Year. We have kept
our promises and more for ten years, delivering record levels of service
including during this extraordinary summer in Scotland with the Commonwealth
Games and the Ryder Cup. Our bid would have delivered even greater levels of
service and growth, and we are disappointed we will not have the opportunity to
implement the credible plans we submitted, building on our record of
improvement across every measurable score, for the benefit of ScotRail's
passengers and employees.

"We shall continue to operate First ScotRail until the new franchise commences
on 1 April 2015. Until that time we will deliver further enhancements to trains
and stations including further free Wi-Fi and continue important work to enable
the extension of smart ticketing across the whole country and the opening of
the Borders Railway next year.

"Today's news does not alter the Group's stated medium-term targets. As one of
the largest and most experienced rail operators we are actively participating
in franchise competitions with the objective of achieving earnings on a par
with the last round of franchising, with an acceptable level of risk. We are in
negotiations with the Department for Transport (DfT^» (Department for Transport - about)) to operate the First
TransPennine Express franchise until February 2016, and continue discussions
with the DfT in respect of a potential longer direct award to operate First
Great Western, our largest franchise, over the period when a substantial
programme of infrastructure upgrades and introduction of new trains will take
place on the network."

FirstGroup has operated the First ScotRail franchise since 2004 and during that
time has:

  * Provided more services and introduced new trains: Scotland now has its
    biggest ever timetable of 2,300 services each day, up by 300 since 2004. In
    addition 215 extra coaches have been introduced. This has helped to attract
    new passengers, with customer numbers rising to more than 86 million - an
    increase of 34% since 2004.

  * Improved service quality: Punctuality and reliability scores reached a
    record high this year of 95.3% - up from 84% in 2004, and customer
    satisfaction is at its highest ever level at 90% - eight points higher than
    the UK average and six points higher than in 2004.

  * Invested in Scotland's rail services: more than ^82 million invested since
    2004 including station improvements of ^56m and improvements to rolling
    stock of ^26.3m. More than 130 trains and 50 stations have been fitted with
    free Wi-Fi.

  * Invested in our people to deliver performance and customer service:
    Employee numbers increased from 3,500 to 4,900 including nearly 300 more
    drivers. We achieved Investors in People Gold status, the largest UK
    Company to do so, and we launched a Modern Apprenticeship in Customer
    Service - the first of its kind in the rail industry.

  * Awarded Rail Operator of the Year at the National Transport Awards on 2
    October 2014 for the third time in six years and also current Rail Business
    of the Year.

  * Forged effective partnerships: First ScotRail was one of the first train
    operating companies to sign an alliance agreement with Network Rail,
    resulting in savings including the delivery of the industry-leading Paisley
    Canal line electrification project within 6 months whilst reducing the
    costs from ^28m to ^12m.

  * Delivered Scotland's successful year of events in 2014: First ScotRail
    carried more than 1.1 million people to the Commonwealth Games, and 50,000
    to the Ryder Cup as well as Edinburgh Festivals and Bannockburn Live.

Notes to Editors:

About FirstGroup plc

FirstGroup plc (LSE: FGP.L) is the leading transport operator in the UK and
North America. With revenues of more than ^6.7 billion and around 117,000
employees in 2013/14, we transported around 2.5 billion passengers last year.
Each of our five divisions is a leader in its field: First Student is the
largest provider of student transportation in North America with a fleet of
around 49,000 yellow school buses, First Transit is one of the largest
providers of outsourced transit management and contracting services in the US,
while Greyhound is the only national operator of scheduled intercity coach
services across North America. In the UK, FirstGroup is one of Britain's
largest bus operators running a fleet of some 6,400 buses, and we are one of
the largest operators of passenger rail services in the UK, carrying more than
330 million passengers last year, with experience of running all types of rail
network.