HISTORIC PRESS RELEASE : SRA and Stagecoach Sign Up To £1.7 Billion Investment Package for South West Trains [April 2001]

The press release issued by the Strategic Rail Authority on 2 April 2001.

The Strategic Rail Authority (SRA) has signed heads of terms with incumbent Stagecoach Holdings plc as the preferred counterparty for the new South West Trains replacement franchise. Under the new franchise agreement, a total of £1.7 billion will be committed over the first 15 years to implement much needed changes on this intensively used and overcrowded commuter network.

Currently, around 2.5 million passengers use the South West Trains network every week.

The focus of the investment proposal is to allow growth in passenger demand, increase reliability and punctuality, improve levels of customer satisfaction and reduce overcrowding. Highlights of the deal include more and longer trains, infrastructure improvements including platform extensions, more frequent services, and station upgrades to facilitate interchange with tube and bus.

The SRA has negotiated a tough deal with Stagecoach to deliver extra capacity, higher performance standards and a step change in quality of service for passengers. The original franchise is due to expire in February 2003; the new franchise will operate for 20 years, with provision for shortening the term to 15 years if later capacity schemes are not implemented.

From the start of the new franchise, Stagecoach will be subject to substantially increased penalty payments for poor performance. They have committed to providing better customer service and improved punctuality and reliability, and within the next ten years, aim to run 15 out of 16 trains on time each day, the equivalent of running 93.75% of all trains on time.

Stagecoach has committed, over the remainder of this year, to introduce new trains, take steps to improve security, accelerate training for staff, and improve customer information and to implement a range of other initiatives.

Safety

In line with the Health and Safety Executive’s requirement Stagecoach will replace all Mark 1, slam door rolling stock by 31 December 2004. All rolling stock in use after 2003 will be fitted with Train Protection and Warning System (TPWS). Stagecoach is committed to ensuring further continuous safety improvement.

Within the heads of terms, Stagecoach has detailed a set of schemes, which are intended to provide the users of South West Trains with the following benefits.

Early Benefits (by 2004)

• Investment in 800 new vehicles to replace the ageing Mark 1 stock by 2004, to increase the fleet and to help relieve overcrowding
• Stagecoach will undertake a programme to lengthen platforms at Waterloo and throughout the suburban system to allow the use of 10-car trains in place of the current 8-car trains. This will increase the peak capacity on most suburban routes by 25% by the end of 2004
• A recast timetable on the Windsor and Reading lines to provide 14 extra trains in each peak and give 15 minute service frequency on the Suburban lines through Hounslow and Putney
• Doubling of the Portsmouth to Southampton service frequency and provide a new service between Southampton and a re-opened station at Chandlers Ford
• Integrated transport projects including three new Rail link buses from Waterlooville to Petersfield, from Yately to Farnborough and from Alton to Winchester via Alresford. Existing Stagecoach bus services in Hampshire and Surrey will be re-organised to provide a Rail Connections Network. Timetables will be changed to improve rail connections, and there will be through ticketing

Longer Term Benefits

• The re-development by 2007 of Clapham Junction, one of the busiest interchange stations on the railway network. The upgrade is designed to make the station more comfortable and convenient for local passengers and for those who change trains. There will be a new overbridge or upper concourse with lift or escalator access to platform level, passenger lounges and improved passenger shelter on platforms
• Improvements at Waterloo Station to provide for the safe and convenient circulation of a growing number of passengers
• Upgrading of Wimbledon and Vauxhall stations to improve interchange with the Underground
• A programme of investments in infrastructure designed to overcome major causes of delays to trains. The programme includes installing stronger rail and more reliable signalling components on the most critical sections of the network (between Waterloo and New Malden, and between Havant and Portsmouth)
• Stagecoach is committed to providing 3,400 new car park spaces by May 2006
• Bringing facilities at all stations up to an improved standard to increase passenger comfort and personal security. CCTV will be installed at all stations and linked to the British Transport Police management information control centre. Waiting areas will be improved and toilets will be provided at all staffed stations. Stagecoach is committed to a phased programme to provide disabled access to all platforms by 2014

Also contained in the document are a set of aspirations. These are projects that will be brought forward subject to feasibility studies, and, where appropriate, passenger growth.

Aspirations

• Introduction of 16 car trains on long distance routes by extending platforms at Waterloo and other stations (2006)
• Extension of platforms 1-6 at Waterloo for 12 car suburban trains (2009)
• Various infrastructure schemes to ease delays, including new platforms at Havant and Portsmouth and Southsea (End 2009)
• Introduction of double deck trains between Waterloo , Guildford, Basingstoke, Chessington, Hampton Court and Kingston
• Restoring passenger services between Bournemouth and Swanage and between Southampton and Hythe, as well as doubling the frequency of services between Weymouth and Poole

Chief Executive of the SRA, Mike Grant said:

“I am delighted to announce the Heads of Terms for this exciting new franchise deal with Stagecoach. South West Trains is one of the South East’s most congested networks. Everyday thousands of passengers use it and the number is still increasing.”

“I believe the Stagecoach deal includes significant passenger benefits and addresses the key issues that affect passengers at an early stage. It represents a commitment to help resolve capacity problems on the busiest rail network in Britain, while keeping disruption to services to the minimum. Stagecoach have learned lessons from their existing tenure, and acknowledge the need for further progress. Passengers can now look forward to a step change in customer service.”

“Investment is the key to improving the rail network, and as part of the deal, around £700 million will be invested in new trains, most of which are planned to be in service by 2004. A further £1 billion will be invested in new infrastructure to help ease congestion problems and to improve reliability.”

“The decision to select Stagecoach was a tough one. It was a highly competitive process, offering us a choice of strong proposals. However, we are confident we have made the right decision and I look forward to substantially improved performance from Stagecoach and the South West Trains franchise going forward.”

Chairman of the SRA, Sir Alastair Morton, said:

“With this decision for South West Trains, we have taken a crucial step in the franchise replacement programme described in our Strategic Agenda. I look forward to the SRA agreeing a number of others this year.”

“New investment is key to the success of the rail industry and rolling stock replacement plays a major part, as this deal demonstrates. I am pleased by the benefits generated from competitive bidding; in particular, Nederlandse Spoorwegen (Dutch State Railways) joined FirstGroup in submitting a very challenging bid. I hope we shall see more from them.”

“Change cannot happen overnight, but over the next few years passengers on the South West Trains franchise will see marked improvements to their service.”