Chinese state to run UK trains
THOUSANDS of Britain’s busiest train services were put under Chinese state control yesterday after a domestic rail firm was controversially dumped.
Transport Secretary Chris Grayling announced that Hong Kong-based MTR was to partner British company First Group to run South West Trains, saying it would deliver faster, cleaner services across southern England.
He awarded the seven-year franchise after rejecting Stagecoach’s application for a new contract.
Industry sources said MTR – in which the Chinese government is a major shareholder – won because of its success at running Hong Kong’s metro.
It is the latest in a string of state-owned companies buying into the British system including Dutch firm Abellio, Germany’s Deutsche Bahn and French operator SNCF.
Yesterday union bosses criticised the decision. The RMT’s Mick Cash said: “Once again the Government have refused to consider the public sector option for a major rail franchise.
“Instead it’s a foreign state operator, in this case the Chinese state, which is set to make a killing at the British taxpayers’ expense.”
Manuel Cortes, of the Transport Salaried Staffs Association, said: “They don’t deliver better services, they deliver higher fares for passengers who are milked as cash cows.”
The franchise covers suburban trains out of London’s Waterloo and intercity services to cities including Bristol.
Mr Grayling said the new operator would invest £1.2billion, creating 22,000 extra seats into Waterloo each morning and 30,000 every evening.