Saturday 26 July 2014

Responce from DfT about re-franchising Great Eastern Mainline

Dear Mr Collins,


Thank you for your email of 17 July to the Rt Hon Patrick McLoughlin MP, Secretary of State for Transport, regarding the Abellio Greater Anglia franchise; I have been asked to respond.

The Abellio Greater Anglia franchise commenced in February 2012, with an expiry date in July 2014.  This short franchise length was to allow the Secretary of State to consider the outcome of the consultation on franchising policy together with the recommendations of the McNulty review of 2011.  It was envisaged at the time that bidders for the longer franchise to be let in 2014 would propose improvements to the franchise. As such it would have been unrealistic to expect the incoming franchisee to deliver largescale improvements in performance when utilising the same trains and infrastructure as the previous operator, or provide new rolling stock in such a short time-period. 

As I said, Abellio started running Greater Anglia services in 2012, when they stepped in to replace National Express as franchise holders. Since then, as with all rail regions, Network Rail (who own and maintain the UK rail structure) have been investing money in both maintaining and improving in the Anglia region; with the Crossrail project improving services from Shenfield, and the recently announced ‘Norwich in Ninety’ looking into ways to speed up rail services to the East of England by as much as 25% being two obvious examples of such work. Network Rail has also started to invest almost £1 billion in 800 miles of track and station improvements in the Anglia region. For more detail please see http://www.networkrail.co.uk/aspx/7063.aspx

Network Rail has invested, and will continue to invest, billions of pounds in maintaining and improving the rail network. In the next 5 years, over £38 billion will be invested by Network Rail across the UK rail network. This programme takes forward the plan set out by the Government in its rail investment strategy (RIS/HLOS) published in 2012.

In 2002 when Network Rail took control of Britain's Rail infrastructure, train performance was languishing at record low levels (78.6% of trains arriving on time nationally). Since then, it has risen to averaging around 90%. Network Rail has been tasked with ensuring that 92.5% of trains arrive on time nationally by 2019.

As you may be aware, the new franchising programme announced by the Secretary of State in March 2013 required a further short term contract to be entered into with Abellio, to run until October 2016. The new Franchise Agreement includes refurbishment works to be carried out on some of the rolling stock. There are two committed obligations in the Franchise Agreement.  The first; the refreshment of the Mark III rolling stock is for the franchisee to procure, undertake and complete during the franchise period, and the Franchisee has already begun the tendering process for the work to be carried out for this refreshment. The second is for the Franchisee, during the Franchise Period to use best endeavours to procure the carrying out of refurbishment works to 12-4 car Class 321 units which is a project being led by the Rolling Stock Owning Company that lease the stock to Abellio Greater Anglia.

The Department is aware of stakeholder aspirations for improvements to the rolling stock for Greater Anglia services and will be considering whether improvements can be made ahead of the long term franchise which will commence in October 2016. A consultation process will commence during 2015 to inform the specification for the long term franchise. 

When launching the new franchising programme in March last year, the Secretary of State made it clear that the new programme would give  fair weight to passenger satisfaction, which has not always been respected as it should have been;

[the] future competitions will also place passengers in the driving seat by ensuring that their views and satisfaction levels are taken into account when deciding which companies run our railway services.

I hope that this provides some insight on the Government’s approach to the matters you raise.

Kind regards

Alistair Hobbs
Rail Commercial Correspondence Manager | Rail Executive

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