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Franchise holders are now partners, says DfT

There will be an expansion of services, with 17 new four-car electric units added to the fleet. The timetable will provide 20% additional services, made possible by the release of capacity on the former electric lines between Stratford and Liverpool Street, by the diversion of some Crossrail services to Abbey Wood. This will allow trains operating from the c2c line to run to Liverpool Street as well as Fenchurch Street station.

A significant passenger benefit is the commitment to running a ‘right-time’ railway, with a Passengers’ Charter obligation to make automatic refunds to passengers by giving smartcard credits on an automated basis. This will replace a process that requires a paper-based application for compensation (to reflect service shortfalls) that many users do not make.

Caledonian Sleeper will see service transformation

In Scotland, Serco has been awarded a 15-year contract to operate the overnight Caledonian Sleeper services, starting April 1 2015.

This follows the decision by Transport Scotland to separate operations from the overall ScotRail franchise, as it believed different management skills were required to meet market opportunities.

The change in emphasis has already been demonstrated by Serco, with the involvement of a Scottish-based hotel group as project partners. Income from fares is expected to be supported by subsidy payments of up to £180m over the contract term.

The two daily return services have operated mainly in the tourist market, as for business travel requirements the availability of domestic air flights and the speeding up of daytime trains has weakened the appeal of overnight rail travel.

Issues remain with the sleeping car product, given the change in customer expectations, and Transport Scotland has taken the view that if the services are to be continued there has to be a step change to transform the offer and maximise value as a tourist attraction.

The centrepiece of the franchise plan is a £100m investment to supply 72 new overnight vehicles, built by CAF in Spain, to be formed into four trainsets that are to be introduced in 2018. The product will offer en-suite berths, pod seats comparable to the airline business class, and improved catering with a restaurant offering a brasserie style of service.

Serco is expected to buy in train haulage. Reports have been circulating that GB Railfreight will provide these services, presumably using Class 92 electric locomotives, for the trunk haul part of the journey over electrified routes, with the possibility of upgraded Class 73 electro-diesel traction being used on relevant line sections in Scotland.

East Coast transfer to the private sector 

Within the DfT domain, the next award will be for the East Coast franchise. The bid winner will be announced in October 2014, when mobilisation will be required to enable operations to commence in February 2015. The contract length has yet to be confirmed, but it is expected to be around eight to nine years with a possible extension of up to two years if business plan benchmarks are achieved.