FirstGroup win InterCity West Coast Franchise

[whole diary]

[dking]

Let's hope that this doesn't mean that the plague of tombstone seats will spread to the WCML^▸ (West Coast Main Line). These have succeeded in draining away 90% of the pleasure of travelling by train except where you are lucky to get a table seat.
We travelled extensively by train this summer (down to Sicily and back) and I have to say that the most unpleasant segment of the whole trip was the PAD^» (Paddington (London) - next trains)-BTH^» (Bath Spa - next trains) bit.

[paul7575]

Despite all the media guesses last week, I doubt there is much between the two proposed levels of premium. 
Stagecoach have been quoted here and have mentioned what Virgin group were offering:

http://www.digitallook.com/news/20297083/West_Coast_rail_franchise.html

Nominal premium payments to the DfT^» (Department for Transport - about) of ^8.6 billion over the core franchise period from 9 December 2012 to 31 March 2026, rising to ^11.0 billion when the potential extension period to 12 December 2027 is included;

A net present value of premium payments of ^4.8 billion for the core franchise period and ^5.8 billion including the potential extension period;

DfT have quoted ^5.5 billion for First Group - presumably that will be an NPV figure as well (if there are any financial 'jargon busters' out there at all)?

Paul

[Tim]

remember Virgin have been running West Coast on a 2% management fee since 2002 which I think has allowed costs rise unacceptably.

A very good point. 

I expect FG will do OK, but this is a very long franchise of the kind designed to incentivise long term large scale investment and upgrades.  So why haven't we seen any of this in the FG announcement?

[Brucey]

I expect FG will do OK, but this is a very long franchise of the kind designed to incentivise long term large scale investment and upgrades.  So why haven't we seen any of this in the FG announcement?

Ticket barriers at 21 stations?  In my opinion, the DfT^» (Department for Transport - about) seem to think passengers think of these to be as much of an investment as new rolling stock.

[paul7575]

I personally welcome this decision and think First will do a good job - remember Virgin have been running West Coast on a 2% management fee since 2002 which I think has allowed costs rise unacceptably.

That's well out of date info - they were only on the management contract between July 2002 and the end of 2006:

VRG announced on 13 December 2006 that it had agreed formal terms for a restated contract with
the Department for Transport (DfT^» (Department for Transport - about)) for the franchise. The franchise deal will run until March 2012,
replacing the Management Agreement (Letter Agreement 2002) which had been in place since July
2002 following the collapse of Railtrack plc.

http://www.virgintrains.co.uk/assets/pdf/media-room/fact-sheet.pdf

[autotank]

Whoops, apologies - my sources are obviously incorrect. I still think First will do a good job with West Coast - before today the share price has been rising steadily since the leaks began, showing someone with money must think it's a good thing.

[anthony215]

New electric trains to displace Voyagers under wires seems very sensible and should have been done whoever won.  Any indication yet what they will be? Presumably the Voyagers be transfered to North Wales, Shrewsbury and other routes off the wires? Also interested to see "Improving connectivity with more stops at Nuneaton and Milton Keynes", loss of which was a major criticism of the current service, but I thought that was driven by capacity and the need to speed up longer distance services, so how will this be achieved?

The new electric units are more than likely to be 6 carriage pendolinos (Known as baby pendolino's) which has been designed to be coupled to a diesel locomotive a lot quicker than currently and can work push pull with the locomotive

[autotank]

But I don't think diesel haulage of electric units will be needed. The new baby Pendolinos will free up quite a few Voyagers from the Brum - Scotland workings, allowing them to do runs to runs on non-electrified lines (of which there will be fewer by the end of the franchise).

[JayMac]

Extract from FirstGroup's press release:

^Improved journey time of 15 minutes for trains between London and Glasgow

Quite some improvement. Requiring a speed of around 1600mph.  

[smokey]

Extract from FirstGroup's press release:

^Improved journey time of 15 minutes for trains between London and Glasgow

Quite some improvement. Requiring a speed of around 1600mph.  

But thats an Average speed of 1600mph, so what rolling stock can reach 2000mph? 

[ellendune]

All the speculation about drastic cuts in catering seem to have been pure fiction.  Other companies have drastically cut catering but FGW^▸ (First Great Western) seems to have done better than most.  Was it all just sour grapes from Virgin trying o whip up sympathy?

[Btline]

Nothing much about catering.

Is the shop being axed? it says something like "at seat catering for all customers"...
They could do a XC^▸ (Cross Country Trains (franchise)), put luggage racks there and then rip them out in the saloons.
No mention of restaurants or travelling chefs (probs because they are not viable/profitable).

[ellendune]

Nothing much about catering.

Is the shop being axed? it says something like "at seat catering for all customers"...
They could do a XC^▸ (Cross Country Trains (franchise)), put luggage racks there and then rip them out in the saloons.
No mention of restaurants or travelling chefs (probs because they are not viable/profitable).

First group statement says:

* Enhanced catering service offered with increased at seat catering for customers

Taking out restaurant cars does not sound to me like enhanced catering.

[JayMac]

Arriva said almost exactly the same following their winning the Cross Country franchise.

The introduction of at seat catering there led to the loss of the shop.

[Btline]

Enhanced catering in First could mean a slightly greater choice but not complimentary and perhaps less staff.