Merger on the west express

From the archive, first published Wednesday 28th Sep 2005.

BIDDERS for the Greater Western franchise are now facing a nail-biting wait to hear who will take the prize.

All three bidders, First Group, who currently run the Great Western franchise, the Stage-coach Group and the National Express Group have all formally submitted their bids to the Department of Transport earlier this week.

The companies should find out if they have won or lost one of the most lucrative prizes in British rail travel some later this year or early in the New Year.

The new franchise would see no less than three railway franchises merge into one.

It would see the network extend westward to Pembroke Dock and Penzance and eastwards, as far as Paddington and Brighton bringing together train services in West London, the Southern Midlands and the Thames Valley under one integrated Greater Western flag.

The company who wins could take up to half a billion pounds of revenue every year for seven years.

There could also be a further three years, depending on whether the franchisee fulfils a series of performance criteria.

National Express Group managing director designate for the new franchise, Peter Cotton, said: "After a year of research and discussion with customers and stakeholders across the region, we are confident we have submitted the bid that best suits the needs of the customers and the requirements of government."

Brian Souter, chief executive of Stagecoach Group, said: "Brunel was one of Britain's true engineering greats and we believe we have put together a bid that incorporates the same qualities of investment, innovation and improvement that will truly put the `great' into the Greater Western franchise.

"We believe we have developed a compelling and winning package that can transform Greater Western into a national model for punctual, clean and comfortable trains, smart and safe stations, and friendly and efficient staff, delivering a revitalised railway."

Alison Forster, managing director, First Great Western and First Great Western Link said: "A key part of our bid is building on, and improving, our partnership approach to working with industry bodies, such as Network Rail, and local stakeholders including Community Rail organisations.

"The benefits of our bid are two-fold.

"It will mean improvements for thousands of customers while also giving good value to tax payers through the financial premium we are offering the Government to operate the franchise."

By merging three franchises, the government aims to cut rail industry costs and hopes the scheme will inject impetus into industry performance and operator efficiency.

Anthony Osborne

Archive Home