UK govt awards West Midlands rail franchise to Go-Ahead Group
The UK government said it has awarded the new West Midlands rail franchise to rail and bus operator Go-Ahead Group PLC.
The Department for Transport (DfT) said London and Birmingham Railway
Ltd has won the contract to run the franchise, which has been created out of part of the former Central Trains operation run by National Express Group PLC.
The company beat off competition from Serco NedRailways West Midlands Limited, a joint venture between Serco Group PLC and NedRailways, the British arm of Dutch state railways.
MTR Corporation UK Limited, part of MTR Corporation of Hong Kong, which won the Transport for London (TfL) contract to run the North London and East London lines, pre-qualified for the competition but declined to bid.
The new franchise will begin on Nov 11 and will run until Sept 19 2015. The DfT has the right to terminate the franchise after six years if the operator fails to meet agreed performance targets.
The franchise will deliver increased capacity, better performance and the
rollout of smartcard technology by 2010.
The West Midlands franchise combines the current Silverlink County services
between London Euston and Northampton, currently run by National Express, with the West Midlands local and regional service groups of Central Trains. The DfT will fund the seven year and 10 month franchise with 1.13 bln stg.
The Dft said there would be a new semi-fast service between London and
Crewe, serving the Trent Valley, and two trains an hour all day between Birmingham and Liverpool and Birmingham and Northampton from December 2008 on the completion of the West Coast Main Line modernisation.
There will also be a fleet of 37 new electric Desiro trains by July 2009, made by German manufacturer Siemens AG (nyse: SI - news - people ), and new class 172 diesel trains to replace the existing class 150 diesels operating on the Snow Hill line services in the Birmingham area by July 2010.
Punctuality and reliability is forecast to rise to 90.7 pct by the end of the franchise.
The DfT said unregulated fare rises will remain at the discretion of the operator and fares for journeys on the London to Northampton route will increase by 3 pct above inflation per annum. Average rises on all other routes within the franchise including those in the West Midlands conurbation are expected to be no higher than RPI plus 1 pct, it said.
The new franchise will be branded London Midland to reflect its geographical market. In its first full year of operation the new franchise is expected to generate total revenue, including subsidy, of nearly 400 mln stg.
Go-Ahead chief executive Keith Ludeman said: 'Our winning bid contains a range of high-quality and value-for-money initiatives which will completely transform passengers' travelling experience -- including continuous improvement in quality, punctuality and reliability of service.'