2nd Jun 2015 09:01
LONDON (Alliance News) - The UK government Tuesday said it has shortlisted FirstGroup PLC, National Express Group PLC and a joint venture containing Stagecoach Group PLC as the three bidders for the new East Anglia rail franchise.
The government said Abellio East Anglia Ltd, a joint venture between Dutch railway operator Abellio and Stagecoach, First East Anglia Ltd and National Express East Anglia Trains Ltd will now work to develop their proposals for the franchise before the invitation to tender in August.
The new operator is due to take over the franchise in October 2016. The East Anglia franchise carries 354,000 passengers a day on five routes across the region, from London Liverpool Street station to destinations including Norwich and Peterborough. It replaces the current Greater Anglia franchise, which is run by Abellio alone.
Stagecoach has a 40% stake in the Abellio East Anglia franchise and Abellio has 60%.
"We have ambitious plans for East Anglia's rail network, and the successful bidder will be central to making these plans a reality. We want to find a partner who will help us meet the increasing demand for transport in the region by providing faster, more reliable journeys and better connections across the region and beyond," UK Rail Minister Claire Perry said.
Bidders will be asked to show how they will improve the region's railways, including providing reduced journey times to London, more reliable services, and better connections, the government said. They will also be expected to show how they could achieve the recommendations of the Great Eastern Main Line Taskforce, which includes reducing London to Norwich journey times to 90 minutes.
"Our plans will include a focus on delivering shorter journey times, better connections and investment in and around stations. We look forward to working with local stakeholders to develop detailed proposals for better services to the commuters and leisure passengers who use the network," Stagecoach said in a statement.
"We have extensive experience of intercity, regional and commuter services, such as those that make up the East Anglia franchise, and we have a strong track record in delivering passenger growth as well as capacity and infrastructure upgrades on the franchises we run - First Great Western and First TransPennine Express. We look forward to reviewing the East Anglia franchise contract details and submitting an innovative, compelling, and value for money bid which meets the needs of taxpayers as well as customers and businesses along the route," said FirstGroup Chief Executive Tim O'Toole.
FirstGroup shares were up 0.4% to 114.8 pence on Tuesday, while National Express shares were down 1.3% to 309.2 pence and Stagecoach shares were up 0.3% to 405.844 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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