New UK rail vision welcomed by train operating companies

Shares in Stagecoach group took a double-digit spike yesterday after Transport Secretary Chris Grayling outlined his long-term vision for the UK rail sector.

As part of a package of reforms that included the potential for some mothballed Beeching rail lines to be brought back into use, Mr Grayling said he wanted to identify the routes that would boost the economy, encourage housebuilding and ease overcrowding.

The plans include the introduction from 2020 of a joint public / private East Coast Partnership under a single brand.

Stagecoach and venture partner Virgin are in talks with the Government over transition arrangements for the next two years before the new model is introduced.

The firm also welcomed the invitation to tender for the South Eastern franchise and said it looked forward to hearing the detail for a new alliance to run the East Midlands network.

Stagecoach CEO Martin Griffiths said the new vision outlined by the Transport Secretary represented a “positive new direction for Britain’s railway”.

“With a strong commitment to partnership working by all industry stakeholders, we see a successful future for the UK rail market as a whole which will benefit customers, communities and the country,” he added.

Stock in north east-based rival Firstgroup saw a smaller single digit rise.

It also welcomed the Government’s vision and said the Department for Transport had confirmed it was extending its Great Western Railway franchise for a year to 2020.

Firstgroup CEO Tim O’toole said: “We are pleased that our strong track record at GWR is recognised, and that the DFT intend to extend the franchise and negotiate a further direct award lasting at least two years.

“A period of detailed negotiation will now follow.”

business@thecourier.co.uk