HISTORIC PRESS RELEASE : SRA Halts Replacement Process For Central Trains Franchise [February 2001]

The press release issued by the Strategic Rail Authority on 7 February 2001.

The Strategic Rail Authority (SRA) announced today that it was halting negotiations on the replacement of the Central Trains franchise with the two companies who had submitted proposals – National Express Group plc and Group 4 Falck Global Solutions Ltd.

The SRA recognised the parties’ efforts, but was not satisfied with the value of the proposals it had received in response to its original invitation in March 2000. In addition, a number of policy issues relating to franchise replacement remain to be resolved with the Passenger Transport Executives (PTEs).

Mike Grant, Chief Executive of the SRA, confirmed that the current incumbent franchisee, National Express, is committed to meet the terms of the existing franchise agreement until its expiry in 2004. He has also secured the agreement of the company on the restructuring of the franchise to separate Cambrian Coast and Central Wales (Aberystwyth) line services for inclusion in the new Wales & Borders franchise.

Commenting on today’s announcement, he said:

“When the replacement process got underway last Spring, we made it clear that any detailed proposals from Group 4 and National Express would have to be competitive. Otherwise, the franchise would continue to run its remaining term. ”

In the event, we took the view that neither party’s proposals would have delivered the benefits passengers are looking for. We have always said that we would not agree longer franchises unless we were satisfied that they offered sufficient benefits to passengers and taxpayers.

“Up until the formal expiry date in April 2004, the SRA plan to continue with investment in the area served by the franchise with infrastructure improvements (IOS schemes) it has negotiated with Railtrack, and we are happy to consider local improvements under the Rail Passenger Partnership fund put forward by the company and the local authorities it serves.

“Irrespective of today’s announcement, proposals arising from the work we have commissioned in our West Midlands capacity study will continue to be progressed and the outputs taken account of in any future franchise”.