More ERMAs extended
THE DEPARTMENT for Transport has exercised its option to extend the Emergency Recovery Measures Agreements with three operators – c2c, South Western Railway and TransPennine Express – from April 1 until the end of May. This was to allow discussions to continue regarding the termination of existing franchise agreements and the move to directly awarded National Rail Contracts. All three franchises had been listed among those in the most perilous financial state and so the DfT is reportedly said to be eager to conclude the new deals. This was hoped to have been possible by April 1, but First Group, parent of SWR and TPE, said it was “working constructively” with DfT to conclude negotiations for the new contracts. However, industry insiders think it’s the transfer to NRCs that is the greatest challenge, not franchise termination amounts.
It appears that the DfT is focussing on how it wishes to see the railway is running and its structure in five years’ time, rather than what is needed now to keep services going. It is this uncertainty that is causing reluctance by owning groups to sign new contracts.