First Hull Trains - contract extended

[whole diary]

[grahame]

http://www.kcfm.co.uk/news/local-news/first-hull-trains-contract-on-london-route-extended/?/

First Hull Trains have got an extension on their contract to run services from Hull to London Kings Cross.

It means they'll operate the route at least until 2019.

Earlier this month, the company announced they're launching a direct service from Beverley to London.

It's as the company's reporting strong growth in the number of passenger numbers, which grew 6.7% last year - well above the industry average.

That reads to me as if they have been awarded a contract by a funder to carry on until 2019, but I understood them to be an open access (commercial) operator.  Is the extended contract their own agreement with Network Rail to continue to allow them train paths - that's not how it reads to me!

[ChrisB]

Nor me - but that's the press for you. Your assumption is correct - they have extended *their* contract with NR^» (Network Rail - home page) to 2019 as a open-access operator.

[JayMac]

Meanwhile over on the West Coast we have the ORR^» (Office of Rail and Road formerly Office of Rail Regulation - about) still saying no to GNWR. Despite the paths being available.

Their reason is the services being proposed would be revenue extractive from franchised TOCs^▸ (Train Operating Company). Why is that okay on the East Coast but not the West?

[ChrisB]

Hmm - it was Virgin that objected strongly to GNWR on the West Coast. Now they have shares in the East Coast, what's the betting they go after Hull Trains? Already proposing some services that are sure to revenue abstract from them. Possibly why Hull Trains moved to extend their contract?

[a-driver]

It was Virgin who paid to the very successful and popular Wrexham & Shropshire railway.

Following the failure to upgrade the WCML^▸ (West Coast Main Line) as was originally proposed Virgin got an anti-competition clause added to their contract for the WCML as compensation.  Basically Branson has a licence to print money on that route.  Another fine example of the mess the DfT^» (Department for Transport - about) have made of privatisation and franchising

[paul7575]

The moderation of competition clauses were not carried over into Virgin's current franchise, the latest objections to GNWR have been from ORR^» (Office of Rail and Road formerly Office of Rail Regulation - about) on revenue abstraction grounds, not from Virgin.

Paul

[ChrisB]

Also, it wasn't Virgin who put paid to W&SMR - the latter 'persuaded' Chiltern to let them cover a Chiltern service or two. As soon as that method of funding was ruled out of order, the plug was pulled.

It never made money