Fee agreed with TransPennine Express

THE DEPARTMENT for Transport (DfT) and FirstGroup plc confirmed on May 11 that they had reached agreement regarding the fee payable for termination of the TransPennine Express franchise. This is part of the process agreed with the DfT when the COVID-19 pandemic meant operators moved into Emergency Recovery Measures Agreements (ERMA) in order to provide continuity for passengers and the industry. This required Train Operating Companies and the DfT to agree whether any payment would be required to terminate the existing franchise agreements, based on a model of the business’s pre-coronavirus trajectory.

In TPE’s case, FirstGroup and the DfT have agreed that the termination requires a further FirstGroup contribution of around £6m, in addition to the £42.5m already paid to the TOC. The DfT has extended the ERMA term to September 19, after concluding the operator would not have defaulted on the franchise had the pandemic not occurred.

TPE faces additional challenges, including those posed by the cracks and other faults discovered in the TOC’s 19-strong fleet of Hitachi Class 802 units and the likelihood of a repair programme being needed for the CAF Class 397 sets. The arrival of the new stock meant 15 of the TOC’s 51-strong fleet of threecar Siemens Class 185 DMUs were due to go off lease. However, this will now have to be reappraised to take into account the fallout from the pandemic, the need for extra capacity, ongoing delays to the acceptance of the Nova 3 Mk 5a fleet and the current problems with the Hitachi Class 802 Nova 1 trains.

Service pattern changes in the Manchester area will also be required if a decision is taken over managing performance through the Castlefield Corridor. This could include turning back some services from the north east at Manchester Victoria, reducing the use of the Ordsall Chord to an hourly train in each direction, and the diversion of the Cleethorpes to Manchester Airport service to Liverpool instead of the airport.