Showing posts with label Concessions. Show all posts
Showing posts with label Concessions. Show all posts

Tuesday, 25 June 2013

Crossrail concession shortlisted bidders

The following have been shortlisted for the Crossrail operating concession:

  • Arriva;
  • Keolis/Go-Ahead;
  • MTR; and
  • National Express.
Perhaps a surprise not to see RATP in the list.

Did Eye mention that this will be a Concession rather than a Franchise?

Tuesday, 12 March 2013

Crossrail concession competition launched

Good news for fans of accountable and properly managed rail services!

Oh and also for all those hugely expensive bid teams currently twiddling their thumbs whilst DfT struggles to work out how to restart franchising after the ICWC fiasco, desperately hoping that at least one can be got out the door before the 2015 General Election when Maria Eagle will be the new Secretary of State for Transport and franchising policy is thrown up in the air once again... but I digress.

TfL has announced that it is seeking a train operator to run Crossrail services from May 2015, with potential operators having until the end of April to respond to today's OJEU listing.


 According to the TfL press release:

Crossrail services will be let as a concession by TfL, similar to the concession let by TfL for London Overground, which is now one of the most reliable railways with some of the highest levels of customer satisfaction across the UK. 

And once again for anyone hard of hearing at the Department for Transport...

Crossrail services will be let as a concession by TfL, similar to the concession let by TfL for London Overground, which is now one of the most reliable railways with some of the highest levels of customer satisfaction across the UK.

Did Eye mention that this would be a concession?

Friday, 15 February 2013

Smith to Crossrail

A busy day for TfL and those named Howard!

This from Crossrail...

Crossrail today announced the appointment of Howard Smith as Operations Director.

Howard Smith is currently Chief Operating Officer for Rail at Transport for London and has successfully led the £1bn East London Line extension project as well as the development, launch and operation of London Overground and management of its operating concession.

Howard Smith will be responsible for leading the development of Crossrail’s operational and customer service strategy, defining the structure of the new railway’s operating and maintenance organisations as well as leading on the arrangements for the future Crossrail operating concession.

Note the magic word 'concession'.

What possible reason, apart from DLR and London Overground, could Crossrail have for preferring a concession over the hugely discredited and thinly capitalised franchising model? (shurely: "highly successful and investment rich franchising model"? Ed)

Monday, 26 November 2012

Brown Review - update

Interesting.

Sources suggesting that Richard Brown was appointed directly by Patrick McLoughlin rather than being selected by Marsham Street mandarins.

Clearly, in Derbyshire at least, blood is thicker than water.

Indeed there is a growing view that Brown may even be prepared to rock the boat with his report.

We shall see.

Meanwhile those interested in making constructive contributions to the review may do so via: Brown.Review@dft.gsi.gov.uk

Alternatively, you can post correspondence to:

The Brown Review
Hercules House
Hercules Road
Lambeth
London
SE1 7DU

Eye readers will be reassured to see that the SE1 address means contributions are unlikely to be opened by purveyors of the failed franchising orthodoxy.

UPDATE: This from The Spirit of Dark and Lonely Water...

Mr Brown at Hercules House?

This used to be the home of the late lamented Central Office of Information – the body that once delivered government advice with less of nudge and more of a supportive hand on the shoulder, whilst the other was firmly clamped on the nads.

Meanwhile I greatly enjoyed Gwyn Topham's story in today’s Grauniad, which accurately reflects what the RDG 'privately told the man shaping the future of franchising'.


Does Eye have any idea qui bono?

Wednesday, 10 October 2012

HS2 to be fast-tracked - DfT hopes for amnesia?

Call the Fact Compiler a cynic but he wonders whether the proposed fast tracking of HS2 is designed to draw a veil over recent ICWC events?

Tough luck, it won't work.

So let's be clear about what the DfT really needs to focus on now.

  1. Where is the remit for Richard Brown's review?
  2. Who is being asked to contribute to it.
  3. How can other interested parties make submissions
  4. What is the precise timeline for activities and implementation of any findings after Richard Brown reports back, allegedly on the 31st December.
As soon as possible, please.

Friday, 5 October 2012

Cap and Collar costs revealed

This from the RMT... 

Evidence unearthed by rail union RMT has revealed that all of the rail franchises currently eligible for receiving taxpayer financial support under loaded contract rules are now claiming it with the exception of Northern Rail and London Midland who could move onto the same special measures shortly.

RMT research also reveals today that the total level of revenue support paid back to the train companies has shot up to £451 million, meaning that nearly half the £1 billion paid to the government in premiums is returned to the operators in a revolving door of corporate welfare. The revenue support payments have gone up from £290 million in a year and are still rising.

The so-called system of “revenue support” – better known as “corporate welfare - is where under the franchising “cap and collar” procedures, private train operators can get more subsidy or pay less premium if their revenue undershoots original inflated projections.

The Parliamentary information shows that the following TOC’s are now being bailed out by the taxpayer because they and DFT have got their sums wrong,

  • FGW
  • Virgin West Coast
  • FCC
  • South Eastern
  • South West trains
  • East Midland
  • Cross Country
  • Southern (from 20/9/13)

That means that eight out of the current 19 rail franchises are on taxpayer bailouts and, whilst Northern Rail and London Midland are in revenue share at the moment (paying more premium or getting less subsidy) this is only by a marginal sum and they could also apply for a bailout at any time.

Yet another reason for Richard Brown's remit to be extended. 

Rather than reviewing 'the franchising programme', now is the time to look into whether franchising is working and if there are better ways to provide passenger services. Through 'concessions' for instance...

UPDATE This blatant piece of puffery from a Mr Chris Jackson...

Interested to see that RMT has now 'discovered' how many TOCs are getting revenue support. 

Subscribers to Rail Business Intelligence would already be well aware, as we published the full list in issue 422 a fortnight ago.

(Can I have a discount on my subscription now? Ed)

Wednesday, 3 October 2012

I told you so... No 2

This from Captain Deltic...

May I join in Eye's exciting new feature?

From the Modern Railways editorial in the October 2012 edition...

With eight franchise to go out to tender in the next 11 months it can’t go on like this, irrespective of the outcome of Virgin’s challenge. In one of his outburst Virgin’s Sir Richard Branson repeated the famous dictum that insanity is repeatedly doing the same thing and expecting a different outcome.  


Twenty years after rail franchising was created, it is time to end the insanity and try a more rational approach to running the railway.

Concessions anyone?