Wednesday, 12 December 2012
Tuesday, 11 December 2012
Monday, 10 December 2012
Now that's what I call a Santa Special!
This from Deutsche Bahn, with a bowler tip to @JohnMurray1960...
Ho ho ho!
Bid teams beefed up for franchising restart
This from Arriva's HR director...
Senior management changes within Arriva Trains Wales
We are pleased to announce that Arriva Trains Wales’ Managing Director Tim Bell has been appointed to a new role within the Trains Division of ‘Managing Director Franchise Bidding’.
Tim will assume this position from Monday 10 December 2012 and will be based in London.
The Bid Team face a challenging and exciting period over the next 12 months and Tim will give added focus to Arriva’s ambitious programme for growth.
This is initially a 12 month secondment for Tim from his role at Arriva Trains Wales.
In the immediate interim, Ian Bullock, Arriva Trains Wales’ Customer Services Director, will replace Tim as Managing Director while the secondment opportunity at Arriva Trains Wales is advertised within the Group.
I am sure you will offer your full support to Tim and Ian going forward.
- ENDS -
The case of the missing numbers
Telegrammed from 221b Baker Street
I say, Holmes, this report by Mr Samuel Baker on the strange case of the Intercity West Coast franchise is a deuced three pipe read if ever I saw one.
Indeed so, Watson, but since I observe that you have reached page 29 I am sure you will have noted the significance of the different Subordinated Loan Facilities required of messrs Virgin and First Group.
But Holmes, all the figures for First Group have been redacted!
That, my dear old friend Watson, is the significance.
Friday, 7 December 2012
Not much blogging today...
Today I will mostly be burying my father, Passenger Transport of 30th November refers...
The next edition of Passenger Transport will be published on the 14th December.
Thursday, 6 December 2012
DfT publishes Laidlaw Inquiry report
This from the DfT (includes links to the actual report)...
West Coast Main Line: Final report of the Laidlaw Inquiry
06 December 2012 11:40
The independent inquiry into the cancelled West Coast Main Line franchise competition has concluded that the project failed because of an accumulation of significant errors related to inadequate planning and preparation, complex organisational structure, and a weak governance framework.
Transport Secretary Patrick McLoughlin asked Sam Laidlaw, the chief executive of Centrica and a non-executive DfT board member, to conduct an urgent investigation following the discovery of unacceptable flaws in the procurement process that led to the competition being cancelled on October 3.
His final report, published today by the Department for Transport, finds that:
- The DfT used flawed and inconsistent methodology when guiding bidders on the amount of risk capital (known as the Subordinated Loan Facility) they would need to offer to guarantee their franchise against default (Inquiry report paragraph 4.31, p22);
- The Subordinated Loan Facility figures resulting from the flawed methodology were then varied in a way that contravened franchise competition rules (3.4, p11);
- Ministers made the original August 14 provisional contract award without being told about the critical flaws (2.12, p8) and having been given “inaccurate reports” (3.8, p12).
- But the Laidlaw Inquiry also concluded that:
- The report’s recommendations to strengthen accountability and governance structures “if acted upon quickly and effectively, will help to restore confidence in the DfT’s ability to conduct effective rail franchising and procurement” (paragraph 8.6, p79);
- While there were inconsistencies in the way First Group and Virgin Trains Ltd were treated during the franchise process, the report finds that there is no evidence of a culture of bias against Virgin at the DfT (paragraph 2.6, p7);
- There is nothing in the report to suggest that the flaws discovered in this franchise competition exist in any other DfT procurements (paragraph 8.3, p79).
- The DfT is today publishing its formal response to the report which commits the Department to implementing swiftly a series of actions that will enable it to resume the franchising programme, with the confidence of the rail industry, as soon as possible.
- Ensuring future franchise competitions are delivered at a good pace based on sound planning, a clear timeline, rigorous management, and the right quality assurance;
- Creating a simpler and clearer structure and governance process for rail franchise competitions, including the appointment of a single director general with responsibility for all rail policy and franchising;
- Ensuring we have the right mix of professional skills, in-house, and where necessary from professional external advisers.
“Building upon and confirming the conclusions from my initial findings, the final report provides an in-depth analysis of the events that led to the flaws whereby the InterCity West Coast competition was cancelled. Alongside this I have also made a series of recommendations for the future.
“I have explained in detail the technical nature of certain errors, specifically around modelling flaws and the Subordinated Loan Facility sizing process. In addition, the report outlines an accumulation of contributory causes including a lack of transparency, inadequate planning and preparation, as well as a complex and confusing organisational structure with weak quality assurance and insufficient governance oversight.
“While it is clear that a number of serious and regrettable errors have occurred, I believe that if acted upon quickly and effectively, my recommendations will help to restore confidence in the DfT’s ability to conduct effective rail franchising and procurement.”
Patrick McLoughlin said:
"The final report from the Laidlaw Inquiry makes extremely uncomfortable reading for the Department. It has identified precisely what went wrong, revealing serious failures, as well as offering us a number of sensible recommendations to put things right.
“We will not allow these mistakes to be made again and the Department is determined to ensure all future franchise competitions are conducted on the basis of sound planning, the rigorous identification and oversight of risk, and the right quality assurance.”
He added:
“Sam Laidlaw has delivered an uncompromising report that offers us a way to face up to a number of shortcomings and I would like to thank him and his team for producing these findings with such diligence and speed.”
DfT Permanent Secretary Philip Rutnam said:
“There is no question that this has been a serious blow for the Department and I am determined that we learn everything we can from this episode.
“We will implement all of Mr Laidlaw’s recommendations, and go further, to ensure we have the right set of skills, support and training to ensure failures like this do not happen again.”
Notes to Editors
1. The Laidlaw Inquiry final report to the Transport Secretary is available here:
https://www.gov.uk/government/publications/report-of-the-laidlaw-inquiry
2. The Department’s response to the Laidlaw Inquiry’s final report, setting out the actions being taken immediately to resolve the report recommendations, is available here:
https://www.gov.uk/government/publications/response-to-the-report-of-the-laidlaw-inquiry
3. The Transport Secretary’s oral statement to the House of Commons is available here:
https://www.gov.uk/government/speeches/laidlaw-inquiry-final-report
4. The Laidlaw Inquiry’s final report is only part of the work the Department is doing to review its rail franchising policy. It will also take into account the forthcoming NAO report into the lessons from the cancellation of the InterCity West Coast franchise and the conclusions of Richard Brown’s review of the future of the rail franchising programme, due to be submitted to the Secretary of State by the end of December.
- ENDS -
Virgin gets 23 month extension on ICWC franchise
So Virgin gets a 23 month extension to the InterCity West Coast franchise.
- Revenue and cost remains with DfT (so risk transfer went well then).
- Virgin to get a guaranteed 1% of revenues under 'management contract'
- The mad midi franchise of two years that was to follow this extension will now not take place.
Here the DfT press release...
Virgin Trains to run improved West Coast services
Rail passengers will experience better services including 28,000 more seats a day under an agreement announced today for Virgin Trains to continue operating rail services on the West Coast Main Line.
The new franchise agreement will run for up to 23 months after which the West Coast Main Line will be let under a long-term franchise.
It coincides with the early completion of a Government-backed deal to roll out 106 new Pendolino carriages, providing passengers with four new 11-carriage trains and lengthening 31 existing trains from nine carriages to 11. A new hourly service between London and Glasgow will also be introduced.
Patrick McLoughlin said:
“We are determined to ensure not only that passengers continue to experience the same levels of service they have in the past, but that services improve. There will be a new hourly service linking Glasgow and London and we will also work with Virgin Trains to explore other service improvements.
“I am also extremely pleased that passengers will benefit from up to 28,000 more seats daily thanks to the delivery of 106 new Pendolino carriages onto the West Coast Main Line which has happened on budget and ahead of schedule.”
Passengers travelling on Virgin Trains will also find it easier to claim compensation if their train is severely delayed thanks to plans for Virgin Trains to introduce an improved Passenger’s Charter incorporating a Delay Repay scheme from 1 April 2013, subject to agreement.
Notes to Editors
1. The 23 month franchise will run from 9 December 2012 until 9 November 2014 after which the West Coast Main Line will be let under a long-term franchise. The Department for Transport (DfT) will be able to shorten this period by up to six months if a subsequent franchise can be let on a shorter timescale.
2. The franchise will operate as a management contract with both revenue and cost risk being borne by the DfT. In return Virgin Rail Group (VRG) will receive a margin of 1% on revenue for operating services. The franchise also makes a provision for the DfT and VRG to agree revised commercial terms that would see VRG take greater revenue and cost risk in the period to 9 November 2014.
3. The 106 Pendolino carriages project has been delivered on budget and ahead of schedule and has resulted from a successful collaboration between the Department for Transport, Virgin Trains, Alstom, Angel Trains and Network Rail.
- ENDS -
Tuesday, 4 December 2012
West Coast franchise agreement reached?
Sources suggesting that Virgin and DfT have reached agreement on the ICWC franchise.
Believed to be an extension for 13 months.
No information on contractual details.
Expect an announcement shortly...
UPDATE: This from @Captain_Deltic, via twitter...
Taking a punt, look for Virgin to get a 2 year extension with DfT's bonkers idea of bidding for an interim 2 year ICWC franchise binned.
Interesting! Anymore for anymore?
DfT appoints David Prout to be DG HS2
This from the DfT...
Full speed ahead as Government appoints new Director General to oversee HS2
The Government’s commitment to delivering a new national high speed rail network has been underlined by the appointment of a new Director General to oversee the crucial project.
David Prout, currently a Director General at the Department of Communities and Local Government (DCLG), will join the Department for Transport (DfT) in the New Year in a newly-created post taking charge of the delivery of HS2.
HS2 is a national high speed rail network linking London, Birmingham, Manchester, Sheffield, Leeds, the East Midlands, with each other and cities beyond it, to drive regional growth, improve connectivity and create extra space and capacity on our railways and roads.
In his current role, David Prout has been at DCLG since 2009, with responsibility for localism, and additional responsibility as deputy for Sir Bob Kerslake given the latter’s role as Head of the Civil Service.
Philip Rutnam, DfT Permanent Secretary, said:
“HS2 is a hugely important programme for the future of the UK. I am very pleased that David Prout will be taking charge at such an exciting time. He will be leading a team which is already hard at work delivering this project, as well as liaising closely with HS2 Ltd, as we work together to introduce the legislation into Parliament on time next year that will make HS2 a reality.”
David Prout said:
“Making HS2 a reality is absolutely crucial to our country’s future prosperity and I am very pleased to have been asked to take leadership of this much-needed programme at this time. I look forward to helping to take the project through Parliament and continuing to demonstrate the very real need for more capacity for people and freight on our railways, which will help make Britain a more prosperous and less congested country.”
Notes to Editors
1. Prior to his current role at DCLG, David was Executive Director for Planning and Borough Development at the Royal Borough of Kensington and Chelsea. Before that he was Director of Local Government Policy in the Department for Communities and Local Government.
2. David has held a range of high profile civil service positions including Principal Private Secretary to the Deputy Prime Minister in the Department for the Environment, Transport and the Regions, Cabinet Office and Office of the Deputy Prime Minister.
3. From 1995 to 1998 David was environment attaché at the UK Permanent Representation to the European Union in Brussels. Prior to that he held a variety of posts in the Department of the Environment. He also worked in the planning department of Westminster City Council from 1990 to 1993 and for the Victorian Society from 1991 to 1993.
-ENDS-
Attlee calls for metal thieves to be shot!
This from the Mother of Parliaments...
Lord West of Spithead (Labour)
My Lords, does the Minister agree that although metal theft is a heinous crime and has caused damage to war memorials and danger to hospitals and railway lines, shooting those involved might be a little over the top?
Earl Attlee (Whip, House of Lords; Conservative)
My Lords, in the case of a war memorial, I am sure that the noble Lord and I would have some doubt over whether that would be over the top. Police officers have a range of options. It is important to note that British Transport Police armed officers have not only a firearm but a Taser and other weapons, such as pepper sprays, so they do not need to resort to the firearm immediately.
Errr... up to a point Lord Copper!
Monday, 3 December 2012
Laidlaw evidence delayed - no sh1t, Sherlock!
This from the Transport Select Committee...
RESCHEDULED ORAL EVIDENCE – RAIL 2020: WEST COAST MAINLINE FRANCHISE
The oral evidence session with Transport Committee scheduled for Tues 04 December with Sam Laidlaw and Ed Smith has been cancelled.
Commenting on this decision, Louise Ellman, Transport Committee Chair said,
“I am very disappointed that the Government has delayed publication of Sam Laidlaw’s final report into the collapse of the West Coast Main Line franchise competition. It was expected that the report would be released last week and, as a result, we arranged to hear oral evidence from Mr Laidlaw and his colleague Ed Smith on 4 December.
“Not only has the report not appeared, but the DfT has not had the courtesy to contact us directly about the delay nor explain when this document will be made public. It is regrettable that the DfT should have added to the confusion caused by the abandonment of the West Coast Main Line competition with this episode.
“We have reluctantly decided to postpone the evidence session on the Laidlaw report until Tuesday 18 December at 10am, by which time the Laidlaw report should be in the public domain.”
Tuesday 18 December 2012
Witnesses:
10.00 am
Department for Transport
• Sam Laidlaw, Non-Executive Director
• Ed Smith, Non-Executive Director
The DfT delaying something and failing to communicate - now who would have guessed it?
Friday, 30 November 2012
Wyvern Rail in one and a quarter minutes
A bit of Friday night easy viewing via Raildate:
Lovely.
McLoughlin signals end to micro-management!
Yesterday the Secretary of State visited NR's Western Route to look at flood damage.
Here Patrick is being interviewed by the Beeb at the site of the Westerleigh landslip between Swindon and Bristol, where a falling away of part of the track’s foundations is resulting in service alterations and delay.
And here the Route Managing Director, Patrick Hallgate, describes mitigation measures and plans to restore full service, as well as pointing out that this site is one of dozens his team are currently dealing with across the Route.
Note that the SoS has resisted the urge to dress up as a member of railway staff!
An encouraging sign for the future?
Melbourne Metro: Dumb ways to die
This Australian safety video has gone viral...
Not sure why Boris Johnson features at the end though!
Thursday, 29 November 2012
Macquarie enters Rosco market
This from Macquarie
Macquarie Acquires Rolling Stock Business From Lloyds, Launches New Rail Business
Macquarie Group has launched a new rail business, Macquarie European Rail, and agreed to acquire a European rolling stock leasing business from Lloyds Banking Group.
It has acquired from Lloyds a fleet of rolling stock leased to the franchisee of the Stansted Express airport rail service, and also a rail freight portfolio of locomotives and wagons under operating lease to two operators in the United Kingdom.
The deal also involves the acquisition of a continental European rail freight and passenger portfolio of locomotives, passenger trains and wagons on operating lease to operators in Europe.
For those interested in such things this involves CB Rail (the continental rolling stock lessor), the Stansted Express Electrostar (cl379) fleet and some UK freight assets (including some 66s, the Class 70s and wagons).
What is unclear at the moment is whether this deal includes the Cross Country and West Coast Voyager fleets?
Siemens buy Invensys
This from the Graun...
Engineering group Invensys shocked the City on Wednesday night when it sold its rail business to German rival Siemens for £1.74bn, in the latest foreign takeover of a British technology firm.
If you can't beat them, buy them!