Brum joy at train scoop

Aug 14 2007 By Jon Griffin, Birmingham Mail

GLOBAL transport group National Express today won the East Coast Main Line rail franchise.

The £2.5 billion turnover transport group, which is moving its headquarters to Birmingham, was named winner of the franchise bids ahead of rivals Arriva, Virgin/Stagecoach and Start Group.

GNER has run the service since 1997 and won a competition to retain the franchise in 2005.

But the Department for Transport retendered the deal after GNER's parent company, Bermuda-based Sea Containers, filed for bankruptcy protection in the Unrted States last year.

GNER was obliged to pay the Treasury £1.3 billion in premiums during the life of the franchise, but revenues failed to match expectations.

National Express, best known for its regional links with Central Trains and Travel West Midlands, will pay the DfT £1.4 billion during the franchise, which will run until March 2015.

Under the deal, the operator will be expected to deliver faster journey times, with London to Leeds services taking two hours, as well as more London to Edinburgh trains with journeys lasting four hours 20 minutes.

National Express has committed to ensuring that nine out of 10 trains run on time, as well as environmental benefits such as reducing fuel consumption per passenger kilometre by 28 per cent over the life of the franchise, and investment in four 'green' stations.

Rail minister Tom Harris said: "There is provision in this contract for extra services and fewer delays. National Express will also invest in stations and on-board services."

National Express said unregulated fares are likely to rise by an average of retail price inflation plus 2.1 per cent a year during the franchise.

The Government currently limits annual rises in regulated fares to RPI plus 1 per cent.

National Express chief executive Richard Bowker said: "We have won with a bid which is ambitious, deliverable and structured to generate shareholder value."