Level 2

Company Announcements

Stagecoach welcomes new direction for UK rail

Related Companies

By LSE RNS

RNS Number : 8200X
Stagecoach Group PLC
29 November 2017
 

29 November 2017
 
Stagecoach Group welcomes new direction for UK rail network
 
Stagecoach Group ("Stagecoach") welcomes the planned new direction for the UK rail network announced today by the Secretary of State for Transport.
 
The Secretary of State's vision envisages a number of changes to franchises currently operated by Stagecoach, as well as other routes, as part of plans to deliver improved integration between train and track. 
 
Planned new arrangements include:
 
• the introduction from 2020 of the East Coast Partnership, a joint venture between the public and private sector, operated by a single management, under a single brand and overseen by a single leader. The Government is currently in discussion with Stagecoach-Virgin, which runs the existing East Coast franchise, with the aim of putting in place new contractual arrangements in early course to facilitate the transition to the East Coast Partnership model over the next two years.
 
• the next competitively tendered East Midlands franchise being operated by a joint team under an alliance. The Department for Transport ("DfT") previously exercised its pre-contracted option to extend our East Midlands Trains franchise to March 2019, with plans for a further Direct Award franchise from March 2019.  We look forward to hearing the detailed plans beyond that for a franchise operated by a joint team under an alliance agreement.
 
In addition, the DfT today published the Invitation to Tender for the new South Eastern franchise, for which Stagecoach is shortlisted. The Government has indicated that the new franchise will be headed by a new Alliance Director, with a joint team responsible for the day-to-day operation of train and track.
 
Martin Griffiths, Stagecoach Group Chief Executive, said: "Stagecoach has championed a more integrated and customer-focused railway over many years and we are encouraged by the positive new direction for Britain's railway. 

"We welcome the Secretary of State's clear statement of intent to seek to negotiate new terms for the East Coast franchise with Virgin Trains East Coast and we are hopeful of reaching an agreement through to 2020 within the next few months.  

"We look forward to exploring further with the DfT its vision for the franchise from 2020, leveraging our knowledge and expertise from the South Western Railway deep alliance and our longstanding interest in greater vertical integration of UK rail.

"We are excited by the potential to be a trailblazer for a new regional partnership railway on East Coast, building on the huge transformation we have already delivered in customer experience and benefits for local communities on the route.


 "With a strong commitment to partnership working by all industry stakeholders, we see a successful future for the UK rail market as a whole which will benefit customers, communities and the country."
 
As previously confirmed, Stagecoach will announce its half year results on 6 December 2017.
 
For further information, please contact: 
Stagecoach Group plc www.stagecoachgroup.com 
 
 
Investors and analysts 
 
Ross Paterson, Finance Director 01738 442111
Bruce Dingwall, Group Financial Controller 01738 442111 
 
Media 
 
Steven Stewart, Director of Corporate Communications 07764 774680 
 
Notes to editors
 
• In 2001, Stagecoach Group published detailed proposals for vertical integration to restore the close relationship between train and track on Britain's railways. The policy document, 'A Platform for Change', proposed improved integration of train operations and infrastructure management and better aligned incentives to deliver a safer, more efficient and more customer-centric railway. 
 
• Stagecoach Group pioneered the ground-breaking deep alliance with Network Rail on the South West Trains network from 2012. A single joint management team, under an Alliance Managing Director, took responsibility for the trains and track on the route operating out of London Waterloo to the South West of England. The alliance delivered a number of customer benefits, including reduced delays per incident, better train performance, a joint approach to managing the impact the weather has on the railway, and improved staff engagement.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCDKLBLDFFLFBF

Top of Page