Stagecoach frustration as rival wins rail contract

FRANCHISE: FirstGroup/MTR consortium to run South West trains from August

Perth transport giant Stagecoach has expressed its disappointment after the Government awarded its long-held South West Trains (SWT) franchise to Scottish rival FirstGroup.

The north-east-based operator and Hong Kong-based partner MTR will run SWT for a period of seven years following handover in August.

The decision to switch is a major blow to Stagecoach which has operated the SWT service for more than 20 years.

Chief executive Martin Griffiths said Stagecoach was “disappointed” at the outcome of the franchise process.

“Over the past two decades, we have delivered real improvements for our customers right across the network,” Mr Griffiths said.

“That success has been built on fantastic people, detailed knowledge of the business and strong relationships with our stakeholders and railway partners. But we have never thought our job was finished.

“We believe we submitted a strong bid for the new South Western franchise.

“It offered a transformation in the travel experience for our customers, more investment to help the railway support the communities and economy of the south west, as well as a substantial and deliverable financial benefit to taxpayers to help fund better public services.

“We will be seeking detailed feedback from the Department for Transport on the various elements of our bid.

“I would like to thank all of our employees and partners who have been involved in delivering our vision for the railway in the south west over the past two decades as well as those who contributed to our strong bid for the new franchise.”

The new operators have promised fresh investment of £1.2 billion in the rail franchise, adding 750 new rail carriages.

FirstGroup CEO Tim O’Toole said: “Our successful bid will deliver the tangible improvements that customers and stakeholders have told us they want from this franchise.

“Passengers can look forward to new and better trains, more seats and services, quicker journey times, improved stations and more flexible fare options.”

MTR, which operates the Hong Kong metro system, said it looked forward to “delivering a major programme of upgrades” to SWT.

Transport Secretary Chris Grayling announced the switch.

He said: “We are delivering the biggest rail modernisation programme for over a century and this franchise will deliver real changes for passengers.”

A South West employee prepares for a train’s departure.