HISTORIC PRESS RELEASE : SRA Approves ECML Costs and Announces Strategic Agenda Approval [March 2001]
The press release issued by the Strategic Rail Authority on 2 March 2001.
Two important developments affecting the future strategic direction of Britain’s railways were announced by the SRA today.
East Coast Main Line
The Strategic Rail Authority has informed Ministers, and then the two counterparties for the Intercity East Coast franchise – Virgin/Stagecoach and GNER – that it has satisfied itself there is no need to continue the pause in the process of selecting the preferred counterparty for the proposed new 20-year franchise to replace the existing short-term franchise held by GNER.
On 14 February the SRA announced the pause following receipt from Railtrack of a range of higher cost estimates for the proposed upgrade of the East Coast Main Line (ECML). The purpose of the pause was to allow the SRA and its advisers to examine closely those new estimates, seeking to reassure the SRA that the upgrade at the heart of the proposed new franchise remained value for money.
The SRA’s Chairman, Sir Alastair Morton, wrote to the Deputy Prime Minister on Tuesday, 27 February – the day before Wednesday’s tragic accident in South Yorkshire – to report to him on the findings of that examination. He informed Mr Prescott that the escalation of the comparable core costs of the upgrade was less than 20%, with other costs reflecting a range of options unlikely to be accepted by the SRA and therefore could be excluded from the core project under consideration.
Adding in those options, said Sir Alastair, “plus fees and contingencies upon contingencies” would appear to double last year’s estimate. He cited as an example the option to spend hundreds of millions north of Newcastle for marginal increases in capacity to Edinburgh, together with a marginal reduction in journey time.
Accordingly, the contest between Virgin/Stagecoach and GNER for the new franchise is now as it was before 14 February. Early in December, the SRA, as required under statute, requested the approval of the Deputy Prime Minister for its confidential recommendation of a preferred counterparty.
Strategic Agenda
The Board of the Strategic Rail Authority yesterday approved the printing and publication of the SRA’s ‘Strategic Agenda’. Once printed, arrangements will be made for distribution to the media and stakeholders in Britain’s railway system.
