The Courier & Advertiser (Perth and Perthshire Edition)
Future of East Coast rail franchise revealed.
Perth operator Stagecoach disappointed at move by UK Government
Public transport giant Stagecoach was left “disappointed” yesterday after the UK Government opted to renationalise its failed East Coast rail franchise.
The move follows Transport Minister’s Chris Grayling’s intervention in February when he confirmed the Scotland to London route was in trouble and said the Stagecoach led Virgin Trains East Coast (VTEC) partnership behind it was “running out of money on the franchise.”
Stagecoach chief executive Martin Griffiths admitted at the time the operator had got its sums wrong on the growth potential of East Coast and faced a £200 million hit as a result.
VTEC parent East Coast Mainline Company (ECML) had hoped to continue to operate the route on a notfor-profit basis.
However, the potential for a new direct award of the franchise hit the buffers yesterday after the Department for Transport confirmed it was instead pursuing an Operator of Last Resort (OLR) option that will see the route brought back into public hands.
“We are surprised and disappointed that the Department for Transport has chosen not to proceed with our proposals,” Mr Griffiths said.
“We believe our plans offered a positive, value-for-money way forward for passengers, taxpayers and local communities, ensuring the continuation of the exciting transformation already under way on East Coast and a smooth transition to the government’s new East Coast Partnership.
“However, we respect the government’s decision.
“We will work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements, supporting our employees and maintaining the same clear focus on our customers as we have over the past three years.”
In a statement to the Commons, the transport secretary said VTEC’s franchise would end on June 24.
Mr Grayling said: “So on the same day we will start with the launch of a new long-term brand for the East Coast Main Line through the recreation of one of Britain’s iconic rail brands, the London and North Eastern Railway, the LNER.
“The team that’s been working for me since last autumn to form the Operator of Last Resort will take immediate control of passenger services.
“They will then begin the task of working with Network Rail to bring together the teams operating the track and trains on the LNER network.”