Abellio still in running for franchise after collapse of Carillion

DUTCH transport giant Abellio has insisted it “remains” in the process that will decide who runs the next Wales and Borders rail franchise – despite the collapse of its construction partner Carillion.

Abellio is one of three bidders in the running to build the next phase of the South Wales Metro and take over the franchise currently run by Arriva Trains Wales.

Its bid was in partnership with Carillion.

But the company yesterday released an update on the status of its bid.

It came amid growing speculation that it could be ruled out of the procurement process due to the compulsory liquidation of Carillion.

Abellio’s bid was submitted before Christmas, via company Abellio Rail Cyrmu.

In a statement it said: “Abellio Rail Cymru (ARC) acknowledges the decision by Carillion plc to enter into liquidation on Monday, January 15.

“We remain in the contract letting process for the Wales and Borders rail service and south Wales Metro being administered by Transport for Wales and are bound by the procurement rules governing that process.

“During the duration of the competition we will make no further comments or issue any press releases relating to our bid unless there are any changes in our position.”

The other two bidders in the process are MTR and KeolisAmey.

Last October, German-owned Arriva Trains Wales confirmed it would not be submitting a bid, having spent more than a year putting together a detail case at an estimated cost running into millions of pounds.

The procurement for the next 15-year Wales and Borders franchise, from October this year, and the design and build of the next phase of the South Wales Metro, with electrification of the the core Valley Lines, is being overseen by the Welsh Government’s at arm’s length transport body, Transport for Wales.

Transport for Wales is expected to confirm the preferred bidder for the Metro and new franchise this spring, ahead of finalising contracts over the summer.

Abellio is a subsidiary of Dutch Railways (Netherlandse Spoorwegen) which operates train franchises in the UK and Germany, as well as buses in London and the Netherlands.

It is currently the fourth largest passenger rail operator in the UK, running the ScotRail, Merseyrail and Greater Anglia franchises.

And last month it started to operate the new West Midlands franchise with partners JR East and Mistui. It also operates bus routes in London. In the UK it handles 1.2 billion passengers a year with 2,058 trains and 1,455 buses. It employs 13,000.

Its other partner on the Metro and franchise bid is AECOM.