Thin gruel at DfT threatens Open Access!

Exciting news from Great Minster House!

This important announcement seen today…

We may safely assume that DfT's former chilly support for on-rail competition, will now be as stone-cold as their canteen food.

Tornado does the ton

Good news for fans of Kettles!

A couple of Eye co-respondents (sic) have sent through some images of last night's Tornado test run and PR coup.

Tornado clocked up speeds of 100mph on the ECML between Raskelf and Alne, north of York, as can be seen here...

From Newcastle back to York the loco carried the ‘Matey’ headboard, in memory of Ray Towell whom we sadly lost just over a year ago.

And here is a picture of the test run team (and guests) safely back at York, following the 100mph triumph.

Good effort!

Meanwhile, Eye is unsure what Northern passengers must make of this, as traction across their franchise is both older and slower.

No matter!

Rumours that Tornado is now on Thunderbird duties, to drag VTEC services through crappy OHLE at Retford, have been denied...

Hammond Eggs - On Open Access

Time for an exciting new Eye feature!

Hammond Eggs records the searing insights of the latest member of the ministerial transport team to take responsibility for rail.

This from a written answer on the 14th October:

Christopher Pincher (Tamworth, Conservative)
To ask the Secretary of State for Transport what assessment he has made of the contribution of open-access operators on the East Coast Main Line in support of the franchised operator.

Stephen Hammond (Wimbledon, Conservative)
The impacts of open access operation have been assessed against three criteria: (a) performance; (b) network utilisation; and (c) revenue of the InterCity East Coast franchise.

(a) Open access operators on the east coast route have typically delivered lower levels of performance than the franchised operator, in part because one of them operates relatively old diesel trains;

(b) Open access operation has had no material adverse impact on network utilisation, although the constraints on platform occupancy at Kings Cross, in particular, and Doncaster, to a lesser extent, have complicated operations at those two stations;

(c) Open access operators have generally tended to abstract revenue from the franchised operator. Furthermore, where bidders in the forthcoming InterCity East Coast franchise competition perceive a risk of additional open access competition causing further abstraction, they are likely to offer lower bids.

No sources cited of course.

Good to see that Stephen Hammond (of all people) is happy to repeat the prejudices of his civil servant masters (is this right? Ed).

As usual that old 'abstraction' canard gets an airing - perhaps Pete Wilkinson (Director Franchising and late of Renaissance Trains) can explain to Mr Hammond the 'not primarily abstractive' test, which the ORR uses to validate all Open Access bids?

At the same time the Parliamentary Under Secretary of State may even wish to read the Office of Rail Regulation's June 2013 consultation on On-rail competition, which states:

Despite the very limited role that competition currently plays, there is evidence that it drives passenger benefits including lower fares increases, higher growth in passenger numbers, direct services to new destinations, and various service quality benefits.

Open access entrants, who always face strong competition from franchised operators, have higher passenger satisfaction scores than franchised operators, including other intercity operators, who in the main do not face on-rail competition.

Quite so.

But then, since when have the residents of Great Minster House ever been interested in driving passenger benefits?

UPDATE: This from Depot Lad... 

On the subject of “old diesel trains”.

I thought the following key points might be helpful for Mr Hammond who is evidently new to his brief.

• Grand Central operates the same type of “old diesel trains” as those operated by both East Coast and Great Western, and some that are significantly newer than East Coast’s diesel and electric fleets;

• Hull Trains operates diesel trains that are significantly newer than East Coast’s diesel and electric fleets;

• Grand Central’s HSTs were the last on the network to be re-powered and upgraded and as such, are in a newer “mod state” than those operated by East Coast;

• Open access operators need less cancellations than franchised operators to seriously adversely impact on the stats;

• East Coast’s cancellations rate is well in excess of that of Great Western, who exclusively operate “old diesel trains”.

Note: Grand Central and Hull Trains are 'evil open access operators'. Great Western is a 'wonderful franchised operator'. Whilst East Coast is run by the minister's own department.

As our North American cousins might say - go figure!

UPDATE: This from Data Minor...

I thought Eye readers and the minister might be interested in the latest NFRIP figures below:

Operator	Fleet	Primary DPI	Primary DPI MAA	MTIN	MTIN MAA
Grand Central	Class 180	25.4	24.3	13,118	8,641
East Coast	IC225	38.4	33.3	11,537	12,326
Grand Central	HST Set	0	19.3	41,421	13,188
Hull	Class 180	18	27.9	14,380	14,561
East Coast	HST Set	34.9	47.3	18,653	18,619

Hull Trains class 180s and Grand Central HSTs are both more reliable than East Coast's IC225 fleet. 

UPDATE: This from a source close to DOR...

For the record:

1. EC's HSTs currently have the best MTIN MAA of all the HST fleets, and this is on an improving trend

2. Second spot in the HST MTIN MAA table is occupied by the XC HSTs, which just happen to be maintained by EC

3. The poor design of the 225 fleet leading to historically chronic levels of reliability is well documented by all operators including BR, GNER, NXEC and now EC.

MTIN MAA is currently at its highest level since this measure was introduced, and on a rising trend, despite the utilisation of the fleet being substantially higher than ever before.

Eye biased towards Open Access Operators? Just fancy that!!!
 

 

More Open Access!

Now pay attention DfT!

This from the Centre for Policy Studies...



That is all.

Grand Central abolishes Christmas!

Oh dear.

It looks like Grand Central is about to fail the Daily Mail test!

The Arriva owned company is offering a 'Festive Timetable' covering the period between 22nd December and 1st January.

But of 'Christmas' and the 'New Year' not a word.

No doubt this one will run and run!

Open Access? Bah humbug!

ORR blows raspberry at Marsham Street

As is well known the dead statist hands of mandarins at Marsham Street are doing their level best to kill off competition on the railways.

This of course comes as no surprise, as the control-freaks of Great Minster House have zero control over Open Access Operators, preferring to see paths granted to their own nationalised Directly Operated Railways or indeed the running dog Owner Groups bidding for franchises.

So bad news for Open Access Operators and of course passengers, who regularly score companies like Grand Central or Hull Trains much more highly in satisfaction surveys then their franchised peers.

But what's this?

Despite Rutman and La Greening having issued new directions and guidance telling ORR to squish Open Access aspirations (Eye passim) the plucky ORR issued the following on the 21st September in respect of Grand Central's desire to run additional services to the North East:

69. Clearly, the introduction of the proposed services would have a number of benefits for existing passengers, would promote the use of the network and would promote competition. It would also allow Grand Central to make more efficient use of its existing rolling stock, and plan its business accordingly. However, it would run contrary to the general guidance issued by the Secretary of State and would impact on the funds available to the Secretary of State, and would be unlikely to improve railway performance.

70. Where, as in this case, our duties do not all point in the same direction we are required to balance them. In particular, where the benefits to passengers of new competing services on the one hand are offset on the other by a negative impact on the funds available to the Secretary of State, we use the NPA test in order to help us strike the appropriate balance. As indicated above, this application passes the test. We therefore have decided to approve the application.

Who would have thought such bravery and independence existed in Kemble Street? 

No doubt Price and Co have been subjected to number of meetings with the new Secretary of State, sans coffee!

Tom Clift RIP - Passenger Champion

Eye was shocked to hear today that Tom Clift had passed away.

Tom recently described himself as follows:

Tom Clift has worked in the railway industry since 1972.

He has covered many roles including Operations, General Management, Business and Resources (including whilst MD of one company - being passed out as a Guard!).

Most recently Tom was MD of Open Access operator Grand Central, which he joined in August 2007, shortly before passenger services commenced. Before this he was MD of Valley Lines.

In 2011 Grand Central was judged by passengers to be Britain's most popular rail company (according to Passenger Focus).

At the beginning of 2012 Tom left Grand Central and is now advising rail companies facing similar challenges.

Tom is married, has a daughter and a Westie and lives in Caerphilly, South Wales.

Tom supports Sheffield United FC, Caerphilly and Wales Rugby teams.

He is misguided enough to own a former British Rail Class 26 diesel locomotive.
 
Many readers will remember Tom for his dry humour, enthusiasm, care for colleagues and attention to detail.
 
Residents of Great Minster House, Kemble Street, King's Place and Bernard Street will remember him for his tenacity!

Tom - Eye salutes you. 

Pinky and Perky announce the HLOS

Despite having been extensively leaked over the weekend, Cameron and Clegg were in the West Midlands today to officially launch the HLOS.

It would be churlish not to recognise that the proposed investment plan for the period 2014-19 contains some good news for passengers, freight and the industry, but the devil remains in the detail, so a cautious welcome from Eye.

Of perhaps greater interest to students of the railway scene are the revised directions and guidance that DfT has issued to the ORR, which were also published today.

Section 24 should make Open Access chums a little nervous...

ORR a shoe-in for franchise regulation

This from Rose Hill...

So. Congratulations to the ORR for their latest novel proposals aimed at reducing industry costs and improving efficiency. 

The Regulator's latest tome, ‘2013 Periodic Review : Financial and Incentive Framework’ confirms that from 2014, access charges will be geographically based, reflecting the different costs of maintaining the track and signalling on various Network Rail routes. 

As yet, Network Rail haven't actually managed to produce any data upon which these charges could be based, but you might of course expect that costs will be higher in some parts of the country, for example areas that are hillier, flatter, colder, wetter, hotter, prettier or possibly with smarter postcodes (is this right? Ed).

To be fair some routes are busier, some less well used, some quicker, whilst others are errr... slower (get on with it! Ed).  So making access charges reflect this will, say the ORR, incentivise operators to be more efficient.

Now of course franchised passenger services are held neutral to any changes by DfT and Transport Scotland. 

So these reforms only apply to freight and open access services (around 10% of traffic), who will now be in the happy position of being able to plan their services avoiding the most expensive parts of the country. 

Indeed, there is some suggestion that railfreight customers are so keen to embrace these changes and do their bit to reduce wear and tear on the network, that they are giving serious thought to relocating their quarries, blast furnaces and deep-water ports (you're just not taking this seriously, are you? Ed)

Happily these exciting ORR proposals will also do their bit to generate new jobs, mainly amongst desk jockeys calculating the new charges and drivers of ever heavier HGV vehicles.

Well done ORR. With a document as well thought out as this the DfT will be only too delighted to hand over responsibility for regulating franchises.

UPDATE: This from Sir William Ackworth...

Is one of the objectives of geographical track access charging to ensure that a much higher proportion of national rail infrastructure costs is transferred  to Mr Salmond and his jocular friends north of the border ASAP – certainly prior to any independence referendum?

The Scottish network is disproportionately blessed with very expensive infrastructure, including the 2 longest estuarial rail crossings in GB (and other structures needing careful monitoring), and significant stretches of line requiring extensive coastal defence and mitigation measures, or susceptible to flooding or rock-falls, or suffering from unstable formations (e.g. in former mining areas or across bogs and moors.) 

In due course, the same approach might be adopted to transfer 50% of the costs of the Severn Tunnel and 100% of the costs of the Cambrian Coast (lots of flooding, rock falls & estuarial crossings there!) and Central Wales lines to the WAG in Cardiff.
 
If this were to happen, then by deploying the same analysis of the second-order effects of differentiated TACs as the fragrant Rose, and also looking at C18th and 19th Scottish history, we can confidently expect the cross-Border migration of many able but destitute Scottish economists and administrators who cannot afford cost-reflective rail fares in their homeland, travelling on cheaper parts of the rail network to seek employment in organisations such as ORR and DfT and willing to accept salaries well below those currently enjoyed by incumbents.

This would significantly reduce rail industry costs and contribute to closing the efficiency gap identified by Sir Roy McNulty (by coincidence, also a Celt). 
 
I feel sure that the occupants of Kemble and Marsham Streets would consider the loss of their current posts to cheaper competitors, or the option of a significant reduction in their salaries to remain employed, to be a small price to pay to facilitate the efficient working of the infrastructure charging and labour markets.

Grand Central appoints new MD

This from the Northern Echo...

At that time York based Grand Central, employing 125, said it would continue with the same management team, but now Arriva has announced its managing director Tom Clift is to leave.

Mr Clift, who has been in his role since the firm's launch, said: "I have enormous pride in the small, committed and professional team that has worked so hard to make Grand Central the success it is today.

Richard McClean will become managing director of the open access operator, in addition to his current role as managing director of Arriva's Tyne and Wear Metro operation.

Heil Bahn!

Arriva snaps up Grand Central

This from Arriva...

ARRIVA ACQUIRES OPEN ACCESS OPERATOR GRAND CENTRAL RAILWAY

Arriva plc has confirmed it has acquired UK open access operator Grand Central Railway which runs passenger train services between Sunderland and London, and between Bradford/Halifax and London.

The acquisition, for an undisclosed amount, adds to Arriva’s UK Trains portfolio of the CrossCountry, Arriva Trains Wales and Chiltern Railways franchises, and concessions to operate the Tyne and Wear Metro and (as a joint venture) London Overground operations.

Grand Central is an open access operator, it does not receive subsidy from, or pay any premium to the Department for Transport. It operates four direct services between Sunderland and London Kings Cross daily, and three direct services between Bradford/Halifax and London Kings Cross. It provides approximately 700,000 passenger journeys a year.

Bob Holland, Arriva UK Trains managing director, said: “We firmly believe open access will play a valuable part of a balanced portfolio for our UK Trains division alongside our three franchises and concessions operated on London Overground and the Tyne and Wear Metro.

“Bringing Grand Central on board means we have a live open access operation up and running, one which is popular with customers and which we believe we can develop to become a key commercial part of our UK rail operations.”

- Ends -

Hmmm!

Go on then... but in the original version of course!



Well, even Her Majesty is part German!

Love-in on the East Coast?

This from King Henry...

Exciting news from the country's two remaining Open Access Operators.

According to the National Rail website...

Saturday 12th and Sunday 13th February:
Grand Central Trains Sunderland service and First Hull Trains will combine and run in unison between London Kings Cross and Doncaster.

Can the nuptials be long delayed ?

So. Farewell WSMR!

This from Chiltern chairman, Adrian Shooter...

It is with great regret that I am writing to tell you that we are intending to close the Wrexham & Shropshire railway company.

This has been a very difficult decision to take, but having thoroughly investigated all possible options, we feel there is no alternative but to cease operations

I am sure you are aware that the unprecedented economic environment has severely delayed the business’s move into profit. While we have worked extremely hard to increase passenger numbers, a loss of £2.8m was made in 2010 and it has been concluded that the potential for further changes to the company’s operations, including any synergy with Arriva Trains Wales, will not improve the financial position sufficiently, and there is no prospect of reaching profitability.

It is therefore intended that the service will cease on Friday 28th January 2011.

Any passengers who have already booked tickets for travel after this date will be offered alternative travel.

I must make it clear that Wrexham & Shropshire is not insolvent nor is it being placed in administration. The shareholders have ensured funding to ensure that all outstanding financial commitments can be met and all suppliers will be paid in full.

Alternative employment opportunities within the railway industry are being sought for employees, and all staff wages and full redundancy entitlements will be paid.

We are already seeking to find alternative employment within the railway industry for our staff.

We also intend to hold a recruitment fair at Wrexham on Tuesday 1st February.

Even though we are forced to close the business, we remain extremely proud of what we have achieved with Wrexham & Shropshire; with many stating that we set the standard for all other train companies to follow.

Our people are central to this and we believe they are some of the very best in the industry.

Their unfailing attention to detail and their sincere, personal interest in passengers has become the Wrexham & Shropshire way.

They are the reason we achieved 99% customer satisfaction in the National Passenger Survey of Autumn 2010, the highest ever recorded.

I would like to pay tribute to Andy Hamilton, Managing Director, and everyone in the Wrexham & Shropshire team.

UPDATE: This from today's Passenger Focus press release on the Autumn 2010 Passenger Satisfaction figures...

The highest ratings for overall satisfaction were achieved by Wrexham & Shropshire (96%) and Grand Central (95%). First Hull Trains, Heathrow Express and Merseyrail all had 93% of passengers satisfied.

Is this what is called 'going out with a bang'?

Hull Trains has falling out with local MP

This from Guido...

It seems Labour’s replacement for Prezza in Hull, the uninspiring Karl Turner, is as ham-fisted and polite as his predecessor. On the morning train out-of-town on the Wednesday before Christmas Karl was in standard class, but thought he would help himself to a complimentary first class newspaper. Problems ensued when he was politely reminded not to steal by one of the train staff.

More here.

Yesterday's ECML woe

Much media excitement yesterday over disruption to the East Coast Main Line

This from the BBC...

Thousands of rail passengers are being urged to reschedule their journeys after a power failure caused havoc on the East Coast mainline...

Passengers heading north from Kings Cross were advised to use alternative services from St Pancras, heading to Yorkshire, or on the West Coast mainline from Euston to Glasgow.

But what's this?

The same story was illustrated with this picture of Kings Cross:

It would appear that not all operators gave up the ghost quite as easily as nationalised East Coast...

New services on the WCML

This from Billy Connections...

So Grand Central proposes using DB Class 67s for its Open Access service from Euston to Blackpool.

Meanwhile DB backed Alliance Rail plan to introduce brand new Chinese trains.

With DB backing both sides could this be one battle that the Germans actually win?

WCML - frying pan to fire

Exciting news from DB owned Alliance Rail.

The putative Open Access Operator is proposing a range of interesting new services on the West Coast Main Line, once Moderation of Competition restrictions designed to protect Virgin end in 2012.

But what's this?

Eye thought Open Access was all about bringing competition and customer choice to the railways.

But a quick glance at Yoghurt Rail's Track Access Application reveals the following:


Perhaps no surprise that Alliance Rail's state owned parent is happy to see the dead hand of a monopoly restored to the route.

DB slashes a quarter of rail services

This from Wrexham and Shropshire, via RailUKForums...

Press Release

2 November 2010

Wrexham and Shropshire : Changes to Train Services

With effect from Sunday 12th December, Wrexham & Shropshire will be making changes to its timetable. Two off peak services each way will be combined and the company will move from four to three services direct to London Marylebone.

After analysing customer travel patterns, Wrexham & Shropshire have determined that several off peak services are too lightly-used to run profitably. The decision has been taken to combine the two least used weekday off peak services and run one less service in each direction per day. Saturday will similarly be reduced from four to three trains in each direction.

Wrexham & Shropshire is an innovative local train operator receiving no subsidy from the Government. The provision of services and profitability of the company is based directly on fares received by passengers.

Andy Hamilton, Managing Director at Wrexham & Shropshire, said: “Our unique position as a local train operator working without subsidy means that our viability is directly affected by passenger numbers. We have several trains that are not being used sufficiently to justify continuing to run them.

“We are passionately committed to the Wrexham & Shropshire business running a direct service from Wrexham to London Marylebone. The change will not affect travel for over 70% of our passengers and will allow us to focus our resources on growing our business where demand is greatest. We know that some customers will be inconvenienced, and for that we apologise.

“Our people take immense pride in the customer service that they deliver and they will continue to provide the award winning travel experience that has seen us achieve 99% customer satisfaction; the highest ever for any train company in this country.”

The changes are as follows

Wrexham to London Marylebone
The 11.27 and 15.25 trains will be replaced by a service at 13.28 arriving in London at 17.30.

London Marylebone to Wrexham
The 07.20 and 11.20 trains will be replaced by a service at 09.20 arriving in Wrexham at 13.20.

Passengers with concerns or additional queries should contact the customer service team on 0845 260 5200.

Ends

Grand Central new MD - Shocker

This from the Railway Herald...


Eye is unsure whether the Tom Windsor mentioned is the former Rail Regulator or a minor scion of the Royal Family?

Perhaps the soi disant 'veteran' observer would care to clarify?

UPDATE: This from a Mr Brennan Brown...

It is neither as well you know!

And can you please stop referring to me as the "soi disant veteran observer", it's not particularly funny and... (sadly, owing to reasons of space, Eye is unable to publish the rest of this email from the soi disant 'veteran' observer. Ed).

UPDATE: This from Chianothus Virginicus

I hope they have considered Psalm 42 before choosing this name and have amended their maintenance regime accordingly!

"As pants the hart for cooling streams
When heated in the chase..."

DB expands Open Access offering

This little gem from the latest edition of Rail Professional...

Yeowart was reluctant to name the company that is funding Alliance, which, he explained, was happy to remain in the background for now. But a look at the Companies House website reveals all. The mystery backer is Arriva, which, of course, has just been bought out by Deutsche Bahn.

Eye wonders whether DB will bundle Alliance Rail into its other open access undertaking WSMR, or vice versa?

Perhaps WSMR will remain stand alone?

No doubt by Christmas all will be clear.