30th Nov 2005 07:04
Go-Ahead Group PLC30 November 2005 30 November 2005 The Go-Ahead Group plc ("Go-Ahead" or the "Group") Integrated Kent Franchise The Board of Go-Ahead welcomes the decision of the Department for Transport("DfT") to select Govia, Go-Ahead's 65% subsidiary, as the new franchisee forthe new eight year Integrated Kent Franchise. The franchise will include routeson the national rail network currently operated by South Eastern Trainsthroughout Kent, parts of Sussex and South East London, plus from 2009 theplanned high speed services on the Channel Tunnel Rail Link ("CTRL") from theMedway towns, Ashford and East Kent to Ebbsfleet, and on to Stratford and St.Pancras. The franchise will run from 1 April 2006 until 31 March 2012, with anautomatic two year extension subject to the achievement of specified performancetargets. This will be extended pro rata for up to two further years in the eventof any delay in the start up of the CTRL high speed services. There will be a revenue share mechanism and the significant initial subsidy willreverse into a modest premium at the end of the franchise. The franchise isexpected to generate revenue of approximately £560m at the outset, inclusive ofsubsidy. Commenting on the DfT's announcement, Chris Moyes, Chief Executive of the Group,said: "We are delighted to have reached agreement with the DfT on the Integrated KentFranchise, one of the largest commuter rail franchises. It fits perfectly withour focused strategy to provide passenger transport management services in theUK and the addition of IKF will endorse us as a pre-eminent operator of commuterrail services in the South East. We submitted a robust and competitive bid andare confident that real benefits will be delivered for passengers in terms ofimproved services, punctuality and reliability." For further information, please contact: The Go-Ahead Group plcChris Moyes, Chief Executive 0191 232 3123Ian Butcher, Group Finance Director Weber Shandwick Square Mile (WSSM) 020 7067 0700Richard Hews/Rachel Taylor/Stephanie Badjonat A conference call for analysts will be held at 9.30am today. For furtherdetails, please contact Weber Shandwick on 020 7067 0730. Note to Editors: Go-Ahead is a key operator of commuter services in London and the South East.Through Govia, it is the franchise holder for Thameslink and Southern. Busservices include London Central and General, companies in North East England,Oxford, Brighton, Poole, Bournemouth, Southampton, Isle of Wight and routes inthe Gatwick Airport and Crawley conurbation. The aviation and car parkingbusinesses have nationwide coverage. Govia is a joint venture between Go-Ahead (65%) and Keolis SA (35%) which is aFrench-based operator of passenger transport services in seven Europeancountries and in Canada. Keolis is owned by 3i, SNCF and senior management. Key highlights of the new franchise include: • Under the deal, there will be significant investment in the business, creating a better railway for passengers with cleaner and more reliable trains, improved safety and security on the network and graffiti-free stations and trains. • The introduction of additional services to ease overcrowding in the busy peak periods from December 2006. • A comprehensive timetable overhaul in December 2007, to improve punctuality and deliver more services. • A target of 9 out of 10 trains on time within three years, rising to 15 out of 16 by 2014. • An investment of £18.1 million to improve the on-train environment across the entire fleet, with work to include new seat covers, toilets and new audio visual passenger information systems on the Networker trains. • A 20 % reduction in cancellations due to vandalism. • A £17.6 million programme to install modern CCTV on the entire train fleet. • On stations, a £5.5 million improvement scheme will see the installation of help points and measures to improve accessibility at stations; plus improvements to car parks, CCTV enhancements and improvements to the customer information system. • Repainting of all IKF stations within three years. • Graffiti will normally be removed from trains and stations within 24 hours of it being reported. • A commitment to significantly improve National Passenger Survey scores, in particular those for station cleanliness and ticket buying facilities. • A commitment to achieve full Investors in People accreditation by the end of 2009, and will together with targeting 35% of the workforce to have an NVQ qualification by the same date. • A new Stakeholder Advisory Board. • The installation of wireless broadband internet access equipment on trains used for longer distance services. • The introduction of zonal fares in the Metro area. • New automated ticket gates at Ashford, Canterbury West and Gravesend. • £1.8million investment in new ticket machines. • Continuous support from SNCF, the French National railway company, in the planning and introduction of new high speed domestic services. Uniquely among UK train operators, Govia has a comprehensive partnership agreement with SNCF, who are the world leaders in all aspects of high speed rail technology and services. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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