Welsh closer to receiving devolved franchising powers
The Welsh Government’s bid for powers to award and manage the Wales & Borders franchise moved a step closer on February 28, with the laying of a draft order in front of Parliament. The order also seeks to protect passengers using services run by the Wales & Borders franchise that cross into England.
Welsh Secretary for Economy and Transport Ken Skates said: “I welcome this recognition of the extensive nature of the cross-border services - and services wholly within England - provided by the Wales and Borders franchise, and the need for appropriate accountability for rail operations on each side of the border.”
Meanwhile, Abellio has pulled out of the bidding for the franchise, following the collapse of Carillion. The two companies had been involved in a joint venture, with Carillion the infrastructure partner, under the banner Abellio Rail Cymru (ARC).
Transport for Wales (TfW) says it learned of falls in Carillion’s share price in July 2017, and raised this with ARC. At this time, ARC decided to remain with Carillion, but TfW demanded independent financial guarantees by a bank for Carillion’s performance.
When Carillion entered liquidation ( RAIL 845), TfW says it asked ARC to provide a proposal which demonstrated it could still deliver the final tender “without changing essential elements of it”.
Amey acquired the majority of Carillion Rail from the liquidator, but because it is already bidding with Keolis for the same franchise, TfW says this “left ARC unable to secure the capability it would need to proceed”. Had another noncompeting buyer been found, it might have been possible for ARC to continue with its bid.
Although there are now just two bidders left for Wales & Borders (MTR and KeolisAmey), Skates said TfW “has analysed the robustness and technical capability of the remaining bidders, and is confident that they are both capable of providing a high-quality solution that will enable us to transform rail services right across Wales”. The franchise is expected to be awarded in May and start from October 2018.
Skates has also renewed his call for devolution of funding for Network Rail in Wales (in a similar model to that used in Scotland), and promised to “continue dialogue” with the Department for Transport on that matter.
Rail Minister Jo Johnson described the move as a “positive and significant step”, adding: “The devolution of these powers delivers on recommendations made by the Commission on Devolution in Wales, and demonstrates the commitment we made as a government in the 2015 St David’s Day Agreement.”
The Government confirmed it will provide an additional £125 million towards upgrading the Valley Lines as part of the Welsh Government’s Metro project.