6th Jun 2007 12:32
Stagecoach Group PLC06 June 2007 Stagecoach Group PLC 6 June 2007 VIRGIN AND STAGECOACH WITH GNER SUBMIT BID FOR EAST COAST RAIL FRANCHISE inter city - railways limited ("ic-r"), a 50/50 joint venture between the VirginGroup of Companies and Stagecoach Group plc, today (6 June 2007) submitted itsbid for the InterCity East Coast rail franchise with a commitment to set a newbenchmark for service to passengers. The bid has been developed through a partnership with incumbent operator GreatNorth Eastern Railway (GNER) and extensive consultation with local stakeholders. Passengers and taxpayers will benefit from an innovative package of improvementsthat build on the strengths of the current operation, including • a multi-million-pound investment in trains, stations and systems • improved punctuality and reliability • better environmental performance A spokesman for inter city - railways said: "New thinking and putting passengersfirst are at the heart of our plans. InterCity East Coast is a complex andchallenging franchise. We believe our unique partnership of the most experiencedand innovative operators on the UK rail network will deliver a new benchmark forthe franchise's customers and communities." ic-r announced in April 2007 that GNER Holdings Limited will acquire a 10% stakein the new franchise holding company at the time of signing a new franchiseagreement, if the ic-r bid is successful. Virgin and Stagecoach will jointlyretain the remaining 90% shareholding as part of the commercial agreementbetween the parties. The Government is expected to award the ICEC franchise in the late summer of2007.ENDS For further information, please contact: Stagecoach GroupSteve Stewart, Director of Corporate CommunicationsTel: 01738 442111 or mobile: 07764 774680email: [email protected] Virgin GroupWill Whitehorn, Director, Virgin GroupTel: 020 7229 4738 or mobile 07941 228844email: [email protected] GNERAlan Hyde, Head of CommunicationsTel: 01904 523515 (direct line) or 07771 831642 (mobile) or 01904 523072 (GNERPress Office)email: [email protected] Sea ContainersLisa Barnard, Director of CommunicationsSea Containers LtdTel: 0207 805 5550 or 07887 823116 (mobile)email: [email protected] NOTES TO EDITORS Stagecoach GroupStagecoach Group is a leading international transportation group, with extensivebus and rail operations in the UK and North America. The Group's businessesoperate around 12,000 vehicles and rolling stock, and employ around 27,000people. Stagecoach operates South West Trains, the UK's biggest commuter rail network,which runs nearly 1700 trains a day in the south-west of England out of LondonWaterloo. The Group also runs Island Line, the country's smallest rail network. The Department for Transport announced in September 2006 that Stagecoach hadbeen selected to operate the new 10-year South Western franchise, which combinesSouth West Trains and Island Line and started in February 2007. Stagecoach Group is shortlisted for the East Midlands rail franchise, which runsfrom November 2007. Stagecoach operates the Supertram network in Sheffield on a 27-year concessionrunning until 2024. Stagecoach Group has signed a 10-year contract with Greater Manchester PassengerTransport Executive (GMPTE) to operate and maintain the 37km ManchesterMetrolink tram system and the associated infrastructure. The contract isexpected to commence in July.The Virgin Group of Companies The Virgin Group of Companies was established by Sir Richard Branson in 1970 andnow encompasses more than 200 companies around the world, operating in sectorsranging from transportation to financial services, mobile telephony,entertainment and retail. Virgin Group's total annual worldwide sales will reach£11 billion in 2007. Virgin Rail Group Stagecoach and Virgin are partners at Virgin Rail Group (VRG), which operatesthe CrossCountry and West Coast inter-city rail franchises. Both franchisescommenced in 1997. Virgin Trains is the brand name of VRG, which is owned 51 percent by VirginGroup and 49 percent by Stagecoach. VRG and the DfT agreed new commercial terms for the West Coast franchise inDecember 2006. The agreement put the franchise on new commercial terms that willrun through to March 2012. The franchise had been operated on a managementcontract since July 2002 following the collapse of Railtrack and changes to theinfrastructure upgrade to the West Coast main line, which prevented VRG fromoperating 140mph trains. VRG is bidding to win the New Cross Country franchise, which is due to start inNovember 2007. GNER GNER runs fast, frequent passenger rail services between London King's Cross,the East Midlands, Yorkshire and Humberside, the North East of England andScotland, carrying 17.4 million passengers a year. Since starting in 1996, the company now runs 36% more services and has attracted45% extra passengers. GNER is currently refurbishing its 13-strong diesel High Speed Train fleet andinstalling new, more reliable, fuel-efficient engines. Last month, GNERintroduced 12 extra services between Leeds and London, creating a half-hourlyfrequency every weekday and delivering 1.6 million extra seats a year on thisbusy route. InterCity East Coast InterCity East Coast is one of Britain's busiest long distance rail routes,which links London with several cities in both England and Scotland, includingEdinburgh. Short-listed bidders will be asked to bid against a specificationbased on a consultation process undertaken by the DfT, which is proposing thatcurrent services are maintained and that the Leeds half hourly service willcontinue. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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