Government poised to break up TSGN mega-franchise

The Thameslink, Southern and Great Northern franchise is set to be broken up at the end of its current operation in 2021.

TSGN is let to Govia as a management contract, which started in 2014. It combined Southern, Gatwick Express and First Capital Connect operations, and includes the introduction of the full 24 trains per hour operation on Thameslink from December 2019. Through trains from Peterborough and Cambridge to Gatwick Airport via the Canal Tunnel begin running in April.

A Department for Transport spokesman told RAIL: “In advance of the expiry of a franchise contract, the Department considers the size and scale to ensure new train operations best meet passenger needs. As previously announced, the Department is actively looking at the shape and size of the next Thameslink, Southern and Great Northern (TSGN) franchise on expiry of the existing contract in 2021.”

Government says it seeks to ensure that the revenue risk sharing for a franchise is commensurate with the market’s ability to bear it, and employs robust revenue sharing and support mechanisms designed to incentivise market growth, passenger satisfaction and ensure financial stability.

It claimed DfT has recently developed an additional risk sharing option for consideration when developing future franchise specifications, which allows larger revenue fluctuation risks (for example, from wider macroeconomic factors) to be shared between the franchise operator and the Department.