Hammond announces franchising timetable

This from the DfT...

The Secretary of State for Transport, Philip Hammond:

The Government is committed to a major reform of rail franchising that will benefit passengers and taxpayers alike. In preparing our policies we have paid careful attention to the views the rail industry, and others, have expressed to us. Our reforms will create longer, less prescriptive franchises that will give the industry more freedom to innovate, address passenger needs, and more incentive to invest. The reforms will also help achieve the radical efficiency changes needed for a sustainable lower cost railway for the long term. This will include a more equitable balance of risk between the public and private sectors, including replacement of the ‘cap and collar’ revenue support mechanism with one linked to economic indicators. There will also be stronger emphasis on partnership and closer working between train operators and their local Network Rail Route teams, allowing integrated decision-making which benefits passengers and drives out cost.

These new type of rail franchises will replace existing ones, as and when they expire, and I have today published a comprehensive forward timetable for the re-letting of rail franchises that represents a deliverable and balanced programme. My aim in doing so is to give the market clarity about the timing of the opportunities that will arise. In producing this timetable, I have had regard to the impact on bidders and their sub-contractors of trying to compete for too many franchises at once, and the likely reduction in value for money to the taxpayer that would result.

In summary, the new programme is as follows:

• As I have already announced, the new Inter City West Coast franchise will commence in December 2012, with an Invitation to Tender (ITT) issued to the pre-qualified bidders in January 2012.
• Following First Group’s decision not to exercise its contractual entitlement to take up a 3-year extension on its existing Greater Western contract from 2013, this will now be the next long-distance franchise to come to market, with the new franchise commencing in April 2013, instead of 2016 as originally planned.
• As a result, and to avoid having to offer more than one long-distance franchise competition at the same time, with possible consequences for taxpayer value, the new Inter City East Coast franchise will commence in December 2013.
• Turning to commuter franchises, there is no change in my plans for Essex Thameside, with the new 15 year contract due to commence in May 2013. The same is true for South Eastern, where the new franchise will start in April 2014.
• In light of the likely delivery timescales for Thameslink rolling stock, I judge it right to exercise my contractual entitlement to bring forward the start of a new franchise to September 2013. The franchise is likely to be shorter than 15 years, with a focus on managing services through the major Thameslink infrastructure upgrade. It would then be re-let at the end of the project.
• To accommodate the changed dates for Thameslink and Inter City East Coast, I intend to move the start of the long term 15 year Greater Anglia franchise to July 2014, exercising the 12 month extension that is included in to the short franchise that is currently being competed.
• I have concluded an agreement with First Keolis TransPennine Express (TPE) which extends the current franchise. The extension incorporates the flexibility to terminate the franchise between April 2014 and March 2015. This flexibility could allow the start dates for the new Northern and TransPennine franchises to be aligned in April 2014, by also exercising the short extension provision in the current Northern franchise. Having both existing franchises end at the same date could allow for these franchises to be combined, or split in different ways. I will be considering the optimal configuration and intend to seek views on the optimum structure from local interested parties. The timescales outlined above will allow for proper consultation and consideration of the possibilities of a radical restructuring in the Northern/TPE area.

In summary, Great Western and Thameslink have come forward (by 35 months and 18 months respectively), the Northern and TPE franchises could now be aligned with a start date of April 2014 - so that we have greater flexibility in re-letting - and two other franchises (Inter City East Coast and Greater Anglia) have been pushed back to accommodate the acceleration of Great Western and Thameslink. Three franchises (Inter City West Coast, South Eastern and Essex Thameside) remain unchanged.

I have already been clear that not all of these franchises will look the same. I believe in horses for courses and a pragmatic, not dogmatic, approach. I will be guided by what drives value for the taxpayer and service for the passenger on each individual franchise.

Some commentators have suggested this represents a huge programme of work and a major culture shift in Government. I agree with them. It is arguably the biggest programme of franchising since the industry was originally privatised. But it is also a major programme – and a significant culture shift – for bidders. There should be no doubt about our determination to deliver on this agenda, nor the importance of managing it properly.

Revising the programme in this way, while remaining clear about our objectives reflects my view that success depends on having a crystal-clear and unwavering strategy, coupled with a willingness and ability to be agile and tactical in implementing it. The end result of this work will be a new rail franchising system that delivers better outcomes for passengers and better value for money for taxpayers.

- Ends -

Baker to reintroduce Workman's ticket - Yawn!

Welcome to the wild and whacky world of Half-baked Baker.

According to the Grauniad...

The transport minister, Norman Baker, wants to dramatically reduce rush hour in the capital and across the country by convincing companies to let people work from home, come in late, or set up satellite offices that will create commuting routes which go against existing traffic.

Ministers are investigating tactics to "nudge" people into abandoning the rush hour, such as convincing train, tube and bus companies to offer bigger discounts for travelling outside the busiest hours.

Where to begin?

Well let's start with Whitehall.

Listen here Normy - rather than telling employers what to do, why don't you lead by example and stagger Whitehall and Westminster office hours?

Too difficult, eh?

So instead why not come up with some vapid posturing that sounds like it might address overcrowding but in reality is merely headline grabbing.

If Baker really believes that the re-introduction of Workmen's tickets is actually going to address the capacity issues on both LUL and the National Rail network (which both recorded over a billion passengers journeys last year) then he really is a couple of slices short of a loaf.

This stale proposition has been reheated by successive Governments since the 1980s, and usually as a prelude to ducking investment in network capacity.

And still the numbers of passengers and the journeys they make grow year on year.

Passengers and the industry are getting sick to the back teeth of headline grabbing crumbs thrown out by ministers.

Time to stop this fruitcake nonsense and invest in new trains and longer platforms!

UPDATE: This from Manchester Man...

The idea of people travelling outside peak times is great.

Unfortunately at least two operators that service London (Virgin and FCC) have increased the length of time that constitutes the morning and evening peak.

Maybe Baker should address that issue first.

UPDATE: This from a Mr Thomas Allen...

What nonsense.

Whitehall staggered its working hours years ago.

I worked (in 'Whitehall') ten years ago with people who came in at 0730 and went home at 1600.

I usually worked 0930 to 1800. We were allowed to work any old hours as long as they added up to 41 a week and we manned the desks from 0800 to 1800.

Has anyone ever tried to get on a train from Tonbridge at 0615? Packed.

My mega-bank moneyed friends in the City (off from Tonbridge at 0615 etc) were at their desks by 0730. Would they count as 'workmen'?

Another friend who was a genuine 'workman' was always on the 0530 so he could be on site by 0700. He couldn't get a seat coming home at 1630.

I remember big plans in the mid 80's to devolve Whitehall HQ offices to all kinds of places, plans for people to work from home, telecommuting and all those things designed to reduce the burden on London rush hour.

Now, what do we have? Record numbers using trains at 'rush hour' which extends from 0600 to 1000 at many stations.

(It was pointed out that if a large London HQ office was despatched to, say, Dorking, that would mean 1,000 more people driving to work. Not very green.)

People do not commute by rail to London because they want to, they do so because they have to.

The sooner the big bucks companies get away from the idea they must have a big shiny tower in London to demonstrate how marvellous they are, the quicker the burden on rail will be reduced.

Big low rise offices in business parks in places like Ashford or Bracknell or Chatham or Milton Keynes, with massive car parks next door and the sooner we can get rid of commuter rail service and leave everyone to to their own devices.

UPDATE: This from Banker76...

Baker's merely building on an increasing reputation for meaningless announcements.

Just a couple of weeks ago he was in Sheffield announcing a 'go-ahead for the tram-train pilot' when in fact he was simply announcing yet another stage in the consultation/funding process.

All the local hacks fell for it, generating welcome headlines about how the project is going ahead.

But his own press release was peppered with words like 'could' and 'might'.

South Yorkshire might indeed get the tram-train pilot. But it ain't in the bag yet.

HS2 - Cleggy giveth and Cleggy taketh away

Exciting news from the Deputy Prime Minister!

Cleggy has been busy twittering the following (several times in fact):

I'm delighted that we've managed to include Sheffield in the high speed rail route. It is a clear demonstration of this government's commitment to creating jobs and prosperity in the north. The Coalition will invest in capital infrastructure like high speed rail and continue to ensure a fair deal for Sheffield.

Good news indeed (what with Cleggy having a Sheffield constituency and all).

However, cuts will no doubt have to be made elsewhere in the transport budget to pay for this Lord Adonis-esque piece of Pork Barrel routing.

Friend Cleggy is already making ominous noises about sleeper services.

This from the latest edition of the Speccie:

"A long walk is overdue, especially after a night on the 'sleeper train' - surely one of the crueller oxymorons in the English language."

Oh dear.

Looks like the days of the Deer Stalker Express are numbered...