Three companies have been shortlisted for the next East Midlands rail franchise – the minimum the Government considers necessary to provide competition.
The companies in the running for the franchise, which will begin next year, include First Trenitalia East Midlands Rail Limited, a joint venture company wholly owned by First Rail Holdings Limited and Trenitalia UK Limited, which is part of Italy's main rail firm.
The other two shortlisted bidders are subsidiaries of Arriva and Stagecoach.
The Department for Transport (DfT) has previously said that it ‘requires at least three bids per competition to create competitive tension and increase the likelihood of receiving high quality bids’.
Rail minister Paul Maynard said: 'I am delighted that all these first-class companies have demonstrated their confidence in our vision for the future of the rail industry in Great Britain by bidding for this key franchise.’
A Southeastern train under the current franchise
South Eastern Franchise
The DfT has also published pre-qualification information for potential bidders for the controversial re-letting of the South Eastern franchise.
The franchise was due to have been the first to see suburban services devolved to Transport for London (TfL) and the London mayor, under an agreement last year between the then transport secretary, Patrick McLoughlin and mayor Boris Johnson.
However, current transport secretary Chris Grayling caused controversy in December when he backtracked on this plan. Current mayor Sadiq Khan subsequently refused Mr Grayling’s offer to second a TfL representative to the franchise specification team.
The DfT has not yet published the specification for the franchise. A DfT spokesman told Transport Network it would be published ‘in due course’.
Wales and Borders Franchise
Transport for Wales, on behalf of the Welsh Government and the DfT, has published a consultation on the ‘high level direction’ for the new Wales and Borders Rail Service, which includes parts of England and delivery of the South Wales Metro.
The existing 15-year contract, which is operated by Arriva, ends next year. It has been criticised for making no allowance for growth in passenger numbers and no provision for extra train capacity.
The consultation document states: ‘It is recognised that the next operator will need to deliver a number of improvements which will be phased over the duration of the next contract.’
It adds that the Welsh Government ‘will expect the successful bidder to invest continuously throughout the 15 years, which is the planned term for the next Wales and Borders Rail Service’.
It also states that: ‘The Welsh Government is absolutely committed to ensuring that the benefits of the new Rail Service will be seen in the Borders area as much as Wales’.
In a sign that the new franchise may see a move to driver only operation, which has been the subject of industrial disputes in England, the document asks respondents to state how important a second member of staff is and, if provided, what that person should focus on.
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