As any ful kno evidence based arguments are the way forward!
That is all.
Exciting news of rebellion from deep within the state owned monolith that is East Coast!
According to Peter Williams, East Coast commercial director, in an interview in Management Today:
‘A lot of people will say East Coast is a model for how public sector-run companies can be successful,’ he told MT.
‘Personally,
it’s quite funny sitting here watching conversations take place about
what is the right thing to do. But if you look at the individuals behind
DOR’s success, the management team are all from the private sector.'
Quite so.
East Coast's success is, therefore, all the more impressive with so little nationalised experience amongst DOR's 'management team':
Michael Holden, Chief Executive Officer, & Non-executive Chairman of East Coast Main Line Company Limited
Michael Holden has extensive experience in managing railways and railway projects within the UK and Europe. He started his early career with British Rail as a traffic student in 1974...
Doug Sutherland, Chairman
Doug Sutherland is a chartered management accountant... In 1995 he moved to the public sector, initially as managing director finance for North of Scotland Water and then managing director finance and commercial for the Strategic Rail Authority... .
Andy Cope, Non-executive director
Andy Cope is a Chartered Engineer who started work as an apprentice with the Birmingham Division of British Rail in 1972...
David Walker, Finance Director
David Walker is a Fellow of the Chartered Association of Certified Accountants, who started his career with the National Coal Board...
Rob Mason, Non-executive director
Robert Mason has over 30 years’ experience in the rail industry... In the run up to privatisation, Rob was the British Rail Director of Privatisation Studies...
Each and every one of them unsullied by public sector taint!
So on which precise date does Private-Sector-Year-Zero begin at DOR?
Of mere passing interest, no doubt.
A quick glance at wikipedia, here and here, reveals the following...
Eurostar International Limited (EIL) is the parent company of the Eurostar service operating between London, Paris and Brussels. Eurostar was previously operated by three separate companies in Belgium, France and the United Kingdom, but this structure was replaced by EIL as a new single management company on 1 September 2010. EIL is owned by London and Continental Railways (40%), SNCB (5%) and SNCF (55%).#
London and Continental Railways (LCR) is a company that was involved in the construction of High Speed 1 (HS1) in the United Kingdom. Originally established in 1994 as a private consortium to build HS1 under a contract agreed with the UK Government, it subsequently ran into financial difficulties and has been owned by the Department for Transport since 2009
So Eurostar, 40% owned by HMG is allowed to bid for franchises, but DOR (100% owned by HMG) isn’t.
Of course DfT is perfectly happy for overseas state owned railways to run as many of Britain's trains as they want, whether passenger or freight.
Eurostar's ICEC bid partner, Keolis, is 56.7% owned by French railway SNCF.
None the less, Eye wonders at what percentage point does UK state involvement in running a competitively tendered franchise suddenly become unpalatable?
Answer from the Treasury and DfT came there none...
UPDATE: Eye issues unreserved apology to Keolis!
According to a press release on the Keolis website from April 2012...
"SNCF increases its shareholding in Keolis to accelerate the next phase of the company’s development
"At the closing of this transaction, SNCF will hold a 70% stake of Keolis alongside a long term investment partner."
Eye wishes to apologise for misleading readers into thinking that the Keolis/Eurostar bid for ICEC might, in anyway, have been considered to be 'private sector'.
Has Simon Burns had a Damescene conversion?
Regular readers of Eye will recall that Third Degree Burns recently described nationalised East Coast as having 'plateaued', and compared it unfavourably with the triumph of private sector innovation that is Beardie Rail.
So what are we to make of these saccharine words from Mr Toad, made during the 5th June Westminster Hall debate on the East Coast Main Line...
"...after an extended and successful period of public ownership..."
"East Coast has delivered a great deal in the past three-and-a-half years of public ownership..."
"The operation of train services by DOR is an essential part of the privatised franchising model."
Words that will no doubt do something to restore the battered morale of his own people holed up in One Kemble Street.
And perhaps more to the point ensuring that DOR has at least some chance of recruiting the skilled people needed to run future franchises, such as errr.. Great Western, for instance!
UPDATE: This from Ithuriel...
It is interesting to note how the civil servants have been desperately trying to re-chip Simon Burns as they realise that rubbishing East Coast and, by implication operator of last resort Directly Operated Railways, reduces the effectiveness of their deterrent against the rapacious bus bandits when it comes to negotiating franchise extensions.
All this is rather akin to the Defence Secretary saying, "Frankly old boy, our missiles are so rubbish that even if they launched we'd be lucky to hit Russia let alone Moscow and anyway, the warheads can't be guaranteed to go off if it's raining"...
But we suspect the new tone is a wasted effort since even this Government must have worked out that if they called the bus bandits bluff and installed DOR then Labour would have a political field day over yet another renationalisation.
With a general election less than two years away there is no way DfT can afford to admit that franchising has failed, again.
So fill your boots bus-bandits, because Burns has all but conceded that DOR is now a paper tiger!
This from The Brothers...
RAIL UNION RMT revealed today that it has been officially notified of a rescue plan to bring in the publicly owned Directly Operated Railways to run the major Great Western franchise between London, Wales and the South West, fuelling speculation that talks on a contract extension with First Group, due to be announced in the next few weeks, are in trouble.
RMT has received the following notification from DOR:
“GW Railway Ltd, a wholly owned subsidiary of Directly Operated Railways, has today submitted applications to the Office of Rail Regulation (ORR) for a Safety Certificate (Part A and Part B) and Safety Authorisation in respect of undertaking train and station operations on the Great Western Franchise (i.e. the line of route currently operated by First Greater Western), should current negotiations between the Department for Transport and First Group, on a short term extension to the franchise commencing in October 2013, fail to reach a satisfactory conclusion.“
Interesting...
UPDATE: This from First Group...
Our negotiations with the DfT in respect of an extension to the First Great Western franchise are, contrary to claims by the RMT, progressing well. Our proposal is not due to be submitted to the DfT until next month.
The step taken by DOR to register a safety certificate is usual practice and reflects the fact that the process to achieve a safety certificate takes sixteen weeks. This process is expected to take place in respect of all potential single tender agreement awards for franchises.
First Great Western has also registered for a safety certificate in respect of an extension to the franchise.
UPDATE: This delightful non-sequitur from Maria the Eagle..
David Cameron and his Ministers must come clean if they are preparing to take over Great Western rail services. Passengers deserve to know the truth about the future of the rail services on which they depend.
The plan to extend existing franchises is collapsing into chaos. This is a direct consequence of the misguided decision by Ministers to prioritise a costly and unnecessary privatisation of rail services on the East Coast ahead of getting the rest of the rail network back on track.
The Government should accept it has got this wrong and allow East Coast services to continue to be run on a not for private profit basis. It will be a scandal if even more taxpayers’ money is wasted, adding to the £55 million that has already gone down the drain thanks to the franchising fiasco for which David Cameron and his Ministers were responsible.
UPDATE: This from a source close to DOR...
You know of course that DOR went through exactly the same process during the negotiations to extend both the West Coast and Essex Thameside (C2C) franchise?
Still, not like the RMT to let the facts get in the way of a good story...
This from Our Man at 222 Marylebone Road...
DfT has once again warned the thinly capitalised equity profiteers not to mess with Clare 'The Franchise' Moriarty or DOR will again step in to run the railway.
But surely DOR hasn't the resources to run 10 franchises over the next couple of years?
Don't be too sure. That sounds well within the modest ambitions of DOR chief Michael Holden.
And to judge by the guest list at the First Class Partnerships thrash at the Carriage Sidings at Kings Cross the other evening, DfT's Consultancy of First Resort would have no problems rustling up any number of deeply experienced TOC management teams.
You have been warned!
This from Directly Operated Railways...
Today’s announcement
In this morning’s announcement, the Transport Secretary said he has decided that the East Coast franchise will now be returned to the private sector in February 2015, some five years and three months after DOR took over the business in November 2009. The decision means that the competition process for East Coast will re-commence almost immediately.
DOR has actively worked to prepare the business for a return to the private sector when the Government decided that the time was right. Due to the delay to the original programme caused by the cancellation of the West Coast competition last autumn, DOR agreed with the Government that it should prepare a fresh medium term business plan to cover a five year period starting in April 2014. This work is almost complete and will be used to guide the further development of the business over the remaining two year period of operation before the new franchise is scheduled to start, and to inform the work of bidders at the appropriate time.
East Coast today
Since 2009, the East Coast business has been transformed. The Company has returned more than £640 million in cash to the taxpayer, achieved record beaking customer satisfaction, and last year delivered the best operational performance on the route since records began in 1999.
Clearly DOR can't wait to get rid of East Coast...
So. A director of First Class Partnerships is now leading franchising for
DfT.
Meanwhile First Class Partnerships has form for advising Directly Operated Railways 'on preparations to take over' franchises, most recently on the West Coast:
This from the RMT, in scraping the barrel mode...
RAIL UNION RMT warned today that the continuing franchise chaos on the West Coast main line could force the Government to run trains over the busy Christmas and New Year period blown over in grey primer with no livery as they continue to drag their heels over the renationalisation of the service under East Coast operator, Directly Operated Railways
Forgive me if I don't get excited.
UPDATE: This from a Mr Tony Miles...
Indeed - scraping the barrel - because obviously state owned East Coast repainted all their trains the day they took over from NXEC, didn't they? Well actually no they didn't as some are still in GNER livery…
Franchise handover rules just require the departing operator to remove their logos from trains.
Remember how long it took Arriva CrossCountry to remove the Virgin colours from the Voyagers when they took over?
Perhaps Bob should have gone to Specsavers?
Phones have been ringing across the industry as Directly Operated Railways assembles its West Coast team of Last Resort.
Despite McLoughlin's warm words about Beardie at today's Transport Select Committee he remained clear that the DfT would continue with First's winning bid, m'learned friends allowing.
Expect the state owned tanks to arrive at Euston on the eve of the 9th December.
As Beardie and ToT gear up for this afternoon's barnstorming performance at the TSC, the DfT is turning up the heat on Virgin.
In yesterday's Sunday Times Karl West reported that Marsham Street is considering renationalising the InterCity West Coast franchise if there are delays to the start of the new franchise (due to commence on the 9th December).
A DfT spokesman said "In view of the legal challenge from Virgin Trains, we are looking at our responsibilities under Section 30 of the Railways
Act and it is only prudent to increase our
focus on contingency planning."
On the plus side, taking over the ICWC franchise for a short time this year will help Directly Operated Railways prepare for a longer custodianship in 2019. (Shurely shome mishtake? Ed)
This from Rail Barbie...
I wanted to write and let you know personally that I will be stepping down from my position as both Chairman of Directly Operated Railways (DOR) and East Coast Main Line Company (East Coast), at the expiry of my contract term at the end of the year. I shall be taking up a new senior industry role at the beginning of January 2012.
I’ve immensely enjoyed being at the helm of East Coast, it’s a really good business and I’m genuinely sorry to be leaving. We’ve achieved a huge amount in the last two years and we’re just starting to see the benefits of the Company ‘turnaround’. The business still has a number of challenges to overcome – but I’m absolutely convinced we made the right base choices and have established a strong new foundation for our successes to be sustainable. The franchise extension until the end of 2013 will see this task largely completed – with Britain’s flagship train company in much better shape than when we started. I couldn’t have achieved this level of progress without the very strong support from the staff of East Coast, the board, and in particular Karen Boswell, East Coast’s Managing Director.
And so, I’m genuinely regretful of the fact that I won’t now be around to ‘finish the job’. The introduction of a major new timetable and the launch of a new complimentary catering offer in First Class in May 2011, have both been strategically significant and delivered positive results. Passenger numbers have increased by 3 per cent in the last year (2010/11), and East Coast is now one of the best financial performers in the rail industry.
I want to personally thank all our customers and stakeholders for travelling with us, but particularly for your engagement over the last couple of years. I can assure you that your feedback has been pivotal in helping us to drive our determination to, ‘get it right’. I know Karen and her team are passionate about carrying on the good work – and will welcome a continuance of the dialogue in the future.
Following my departure, Michael Holden will become Chairman of East Coast and Doug Sutherland Non Executive Chairman of Directly Operated Railways. Michael and Doug will fulfil these roles on an interim basis until discussions with the Department for Transport on filling these roles permanently are concluded.
- ENDS -
Telegrammed by The High Tea Party
So. Directly Operated Railways has published its accounts.
Amidst the usual self congratulatory PR puff there are one or two hard numbers.
Like the directors' remuneration for example.
Perhaps at some point the Department for Transport could explain why, in the Age of Austerity, we need an organisation like DOR to second guess the management decisions of East Coast's own well paid directors?
Meanwhile, trebles all round!
UPDATE: This from a reader who wishes to remain Anonymous...
Whilst the DfT Business Plan published today claims that:
We will also pursue our wider transparency agenda through publishing details of:
The government has announced that the following Quangos are to be abolished (with a bowler tip to the Local Democracy Blog):
Department for Transport (DfT):
This from Puffing Billy...
Good news for those interested in railway catering.
There was much disappointment last month when East Coast cancelled, at short notice, the launch of its new catering offer.
Happily it would appear that the state owned TOC has found a new venue to unveil it's exciting plans for the future - no less a location than the opulent Stafford Hotel in the exclusive St James area of London.
As well as offering trade hacks the chance to meet with Rail Barbie and Karen Boswell over a 'special meal', tonight's invitees have also been promised a tour of the hotel's unrivalled wine cellar and, as an added bonus, a 'special guest' appearance by a senior figure from Network Rail!
In these austere times it is comforting to know that the public sector can still put on a good show.
Perhaps Sir Philip Green should call by to see such efficiency in action?
UPDATE: This from one of Eye's spies at last night's dinner...
It would appear that Ms Holt is one of Eye's growing band of devotees.
She began last night's festivities by introducing herself as 'Rail Barbie'...
Good effort.
The Office of Rail Regulation today confirmed that it would "consider any alternative uses" for the London - Lincoln paths granted to East Coast.
Previously the state owned operator had said that they would operate seven return services a day between Lincoln and London. However, modelling work suggested that this service pattern would lose approximately £9m a year.
In its place East Coast proposed running just one daily return service from London to Lincoln and four shuttle services from London to Newark.
Other operators had protested that East Coast's revised proposals did not make best use of scarce resources on the ECML.
In a letter sent today to stakeholders Brian Kogan of ORR said:
As most of you will be aware, East Coast has recently announced that it no longer plans to operate seven weekday services each way between Lincoln and London. Instead it wishes to operate just one service each way, with a further four services each way operating between Newark and London. It has indicated that it intends to submit a track access application to amend its rights.
We have received representations from other operators pointing out that this is the second significant change to the destinations served since NXEC Trains Limited (National Express East Coast) submitted its original application for track access rights in June 2008, and suggesting that East Coast’s revised proposals do not make best use of the capacity available on the East Coast Main Line (ECML), and therefore that we should evaluate alternative proposals.
In November 2009 we agreed to East Coast’s request for a change of destination from Leeds to York. The reasons were set out in a letter to the industry dated 25 November 2009. But circumstances are now somewhat different:
As predicted by Eye on Tuesday there is bad news for the East of England
CHANGES TO EAST COAST EUREKA! TIMETABLE PROPOSALS
Train operator East Coast has today announced a number of amendments to the planned introduction of a new timetable from May 2011.
Under the amendments, most of the planned new London King’s Cross – Lincoln services will now operate between King’s Cross and Newark, with one through train per day in each direction between Lincoln and King’s Cross. As a consequence, it will not be necessary to introduce an additional fleet of trains (five Adelante Class 180s), and the daily service to and from Lincoln/King’s Cross will be resourced from within the existing East Coast fleet.
The amendments to the timetable changes proposed will result in a net saving of £9 million per year compared to the original plans.
Speaking about today’s announcement, Elaine Holt, Chief Executive of Directly Operated Railways and Chairman of East Coast, said: “I know this will come as a disappointment to many people, especially to those in Lincoln who were looking forward to a much improved direct service to London.
“We had believed the proposed new Lincoln services would provide more through trains for customers from the region – and this formed an important part of the Eureka! timetable changes. However, given the very tough economic climate, all parts of the Government are looking to see where efficiencies can be made.
“We’re very pleased that two through services will be retained for Lincoln.”
East Coast mounted an extensive information and consultation programme earlier in 2010 in England and Scotland to communicate details of the proposed Eureka! timetable. As a result, the company processed 1,500 feedback enquiries and the results of this work were passed to Network Rail, the Office of Rail Regulation and the Department of Transport.
East Coast will be communicating the details of the latest changes to stakeholders over the next few days.
Seven weekday trains in each direction had been planned for the new Lincoln/London King’s Cross services, using the Adelante Class 180 trains.
Now, the modified service pattern will include a single direct service from Lincoln, in the morning departing at 07.22, arriving at King’s Cross at 09.21 (calling at Newark, Grantham, Peterborough, Stevenage, and London King’s Cross). During the evening peak, a single direct service will leave King’s Cross at 19.06, arriving at Lincoln at 21.00.
Four additional services will be available in each direction between Newark and London King’s Cross, provided by East Coast’s nine-carriage trains, and providing valuable extra capacity on this busy route. These will link to connecting services between Newark and Lincoln.
ENDS
Lincoln must be pleased it elected a Tory MP.
UPDATE: This from Tony Miles...
The campaign to keep the three Adelantes with Northern Rail, pending the delayed return of its Class 142 Pacers from FGW because of the 172 fiasco now steps up.
No doubt the various ITAs will be asking for Northern to be allowed to borrow the other two 180s currently at Bounds Green until the Government does something about serious overcrowding in "The North".
The North, for members of the new Transport Team, is that place above Watford that you have probably read about in books.
UPDATE: This from a Southerner...
Whilst Parliamentary Under-Secretary Mike Penning is the only Minister without a direct rail remit, he is MP for that well-known constituency of Hemel Hempstead, which when seen from the glorious south (of the Thames) is very definitely North of Watford.
Admittedly it may not be as far north of London as Stretford - but there again, Miles' own country might be considered to be 'deep south' by the denizens of Thurso.
Meanwhile, if Northern wants the 180s, they are welcome to them. At least we don't [yet] have to worry about them appearing on the Lymington branch.
UPDATE: This from Live Culture...
There will be no money for the ITA's to take the Adelantes on.
So that leaves the open access mob to scrap it out.
Unless Sir Humphrey can suddenly find a pot of gold to stop them.
UPDATE: This from a Mr Damon Powell (presumably in Lincoln?)...
Its OK, as long as they terminate them at Newark, we can get there, because a week or so ago, Stagecoach in Lincolnshire launched their new bus service from Lincoln to Newark North Gate (which originates at Grimsby - fancy that, just like the train!).
Its supposed to link us to Newark North Gate so we can get London trains there.
Here is the interior which admittedly is much superior to a 153:
Now, I can't figure out what's best about the service...
a) The fact that it's Stagecoach Bus competing with Stagecoach EMT
or
b) That most of the buses are timed to leave Lincoln 5 or 6 minutes before or after the train to either Newark Castle or Newark North Gate, but takes twice as long as the train does!
Shurely a case of Stagecoach 'improving the efficiency and value for money of rail franchises'. Ed
UPDATE: This from Tony Miles...
Perhaps I could point out that Northern already has the funds for three Adelantes as they are "in lieu" of the Pacers loaned to FGW at the DfT's request. I'm sure any shortfall is made up by the DfT as it brokered the loan.
If DfT decides the Pacers will have to stay with FGW longer (it has decided this actually) then it'll have to let Northern keep the 3 Adelantes a bit longer.
As for the other two, well GMITA is very miffed that WYITA got local support for additional rolling stock & nobody in the N West was as generous.
Maybe it's time for them to start a campaign in the spirit of the Wars if the Roses over who will fund two more trains?
UPDATE: This from King Henry...
The question now is whether ORR's forthcoming 'lessons learned' review of the East Coast saga is ruthlessly honest about the collective madness or whether it is another outpouring of guff.
Whilst the new government warns that transport will not be immune from swingeing spending cuts it appears that not all civil servants are on message.
This from The Journal...
Elaine Holt, chairman of state-owned rail company East Coast, told The Journal new trains were needed to cope with rising passenger numbers and the needs of travellers in the coming years.
Presumably Elaine's new boss, Philip Hammond, will shortly be summoning her for a meeting, sans coffee?
This from The Times...
National Express, the struggling transport group, has walked away from a last-gasp merger with rival Stagecoach over concerns that competition regulators could derail a deal.
State operator 'East Coast Mainline' is expected to take on the NXEC franchise at the December Timetable change.
This from nebusiness.co.uk...
Passenger revenue growth was 1.3% up on the CrossCountry rail franchise during the 42 weeks to October 24 and jumped by 3.8% in the last six weeks. The figure was even higher at Arriva Trains Wales at 6.7%.
Stand down DOR...
UPDATE: This from City Boy...
Remember that Arriva XC needs annual growth of 10% to maintain profitability on the franchise.