£5bn for Wales!
148 new trains, 106 miles of electrification, four new stations plus a new depot in 15-year Welsh franchise
A COMPLETE fleet replacement using mainly new trains, electrification of the Valleys routes, and transfer of infrastructure from Network Rail to Transport for Wales are some of the major changes planned in the new 15-year Wales & Borders and South Wales Metro franchise that KeolisAmey will operate from October 14.
The cost of investment by all stakeholders will total £5 billion.
Four new stations will be built in Cardiff - at Loudoun Square, Crwys Road, Gabalfa and Flourish. On-street running by tram-trains in Cardiff also feature in the deal, which replaces the existing Arriva Trains Wales franchise.
The new operator plans to invest £1.9 billion in the new franchise. Final design of the infrastructure upgrades are under way, while negotiations surrounding the funding of 148 new trains were ongoing as this issue of RAIL went to press.
The franchise will be managed by the Welsh Government in a notfor-profit agreement ( RAIL 854).
Welsh Cabinet Secretary for Economy and Transport Ken Skates said: “We are at an historic point for the railway in Wales. For the first time a rail service has been procured and awarded in Wales, for Wales.”
He said the Welsh Government had learned lessons from rail franchising and infrastructure delivery. It has spoken to Transport Scotland regarding how the latter specified and procured the ScotRail and Caledonian Sleeper deals, and will “focus on quality and innovation”.
He confirmed there are break points at the five and ten-year periods in the franchise.
Alistair Gordon, chief executive of Keolis UK, said: “For too long the railways in Wales have suffered from underinvestment. While the changes we need to make will take time, we are creating a platform for future economic growth and prosperity that will benefit all of Wales now and for generations to come.
“In five years’ time, the railway will be unrecognisable from what it is today, thanks to the vision of the Welsh Government.”
Amey Chief Executive Andy Milner said: “As well as creating new jobs and apprenticeship opportunities, we will be focused on upgrading the existing infrastructure and introducing new trains to significantly improve the passenger experience.”
Under the new franchise, KeolisAmey will spend £800 million replacing the fleets, with 95% of journeys to be made on new trains built by CAF and Stadler. £194m will be spent on improving all 247 stations, and by December 2023 there will be an extra 285 services every weekday across the country. An extra 294 trains will run on Sundays. In total, there will be a 65% increase in capacity.
Running under the Transport for Wales brand, KeolisAmey will recruit an extra 600 staff and 450 apprentices over the 15 years.
KeolisAmey Mobilisation Director Colin Lea told RAIL: “The vast majority of the new 600 staff are traincrew. Keolis’ international
headquarters are moving from Paris to Cardiff in 2020.
“This is the first majority franchise we have had. We like a good mix of UK rail expertise and shareholder’s expertise, so there will be SNCF and Keolis staff, but the vast majority are UK rail industry people. And we’ll take over Arriva Trains Wales’ 2,000 staff.”
Skates added: “Public investment with a social purpose is a cornerstone of our new approach to rail. Working with, and not against, our trade union partners, we are safeguarding the conditions of those people who work on our rail network and we will keep a second member of staff on every train.”
There is a plan to reduce the price of some fares, and a reform of the existing structure. Smart ticketing will also be introduced.
“This is a contract that offers value for money,” said Skates. “With £738m in the South Wales Metro, a further £800m in new rolling stock, and almost £200m in modernising all 247 stations, the franchise will be driving a nearly £2bn investment programme that will bring about transformation to communities and people the length and breadth of Wales and its borders.
“On top of the contractual profitcapping and sharing mechanism, the franchise does not expect to pay dividends to its shareholders for the first five years, reinvesting profits to fund this investment.”