No return to franchises soon
Concessions are set to replace franchise agreements after the Emergency Measures Agreements expire in September.
THE franchised passenger operators are continuing to operate under the terms of Emergency Measures Agreements (EMAs), where the Department for Transport meets the cost of providing the timetable for key workers and other essential travel.
The EMAs are due to expire on September 19, but the Government has said that franchise agreements will not be reinstated in their current form as an expected shortfall in revenue will invalidate previous contract assumptions.
The preferred alternative appears to be the concession style of agreement, which is already used by Transport for London for its London Overground services, and the Liverpool City Region for Merseyrail.
The change means that train operators will no longer have responsibility for revenue and become operational contractors, with the relevant public authority determining the performance benchmark and fares policy.
This business model is more appropriate for local metro style operations than longer distance services where passengers are choosing rail over other options. Long distance routes require a competitive product supported by marketing initiatives that is not necessarily compatible with removing any incentive for the operator to attract customers in a competitive market.
STRUCTURAL CHANGES
Changes can also be expected after the failure to align timetables with capacity. The situation in Manchester is the most quoted example, where a timetable was planned on the basis of an enhancement scheme that the DfT did not subsequently authorise. As a result, more trains are now planned to run through the Castlefield corridor, which links Victoria and Piccadilly stations, than can be reliably operated.
There have been similar problems with the West Midlands franchise, which required an increase in services from December 2018, although this was put off until May 2019. An investigation by the ORR has shown that the additional capacity has been created by splitting and joining services at Birmingham New Street, which has impacted on performance. Despite the need for change, Network Rail has said its planning process will not permit this to happen before May 2021 at the earliest.
It is little wonder that a future industry structure is planned with a central guiding mind that, in the words of the Government, will create ‘a railway that is brought together a lot more’.
INTERCITY SETS TAKE SHAPE:
Hitachi has started work building new train sets for both the West Coast and East Coast main lines. A Class 805 bodyshell for Avanti West Coast is pictured (far left) at the company’s Kasado plant in Japan, although others have already been shipped to Newton Aycliffe in County Durham for assembly to begin. These 13 five-car bi-modes will replace AWC ‘Voyagers’ from 2022, and there will also be 10 all-electric seven-car Class 807 units. Meanwhile, Newton Aycliffe is also assembling five 5-car Class 803 EMUs for open access operator East Coast Trains. These are due to enter service between Edinburgh and London from autumn 2021, offering a cost effective alternative to flying.