Stagecoach on key London shortlist

Published on Wednesday 20 August 2008 21:54

STAGECOACH has been shortlisted in the competition for a new English rail franchise which operates some of London's most important commuter routes.

The Perth-based company was yesterday named on the list for the new South Central franchise along with National Express, which operates the East Coast Line, Govia, a joint venture between Go-Ahead and French transport group Keolis, and Ned Railways, a Dutch rail operator.

South Central combines the former Southern Railway routes with the Gatwick Express operations, which links most passengers using Britain's second-largest airport with central London.

Stagecoach chief executive Brian Souter said the franchise was critical to the economy of the south of England.

He said: "Stagecoach has an excellent track-record of high operational performance and delivering major investment to improve services for millions of passengers across our existing rail networks."

Souter added that the company would work with stakeholders to develop a competitive bid to attract more people to "greener, smarter rail travel".

"Our experience in running the UK's biggest commuter rail franchise at South West Trains and attracting new leisure passengers will give us a strong platform to develop innovative and environmentally sustainable plans for the South Central franchise."

South Central is the only rail franchise up for grabs this year and it is expected to be keenly contested by all of the companies on the shortlist.

The eventual winner will operate trains in south London and parts of Kent, Sussex, Surrey and Hampshire.

Govia currently operates both the Southern franchise and the Gatwick Express, after taking control of the airport link in June.

Last year, the Gatwick Express and Southern franchises accounted for more than 140 million passenger journeys.

A Department for Transport consultation paper highlighted overcrowding at peak times as a problem on many of the lines, so the winner of the new franchise will be required to increase overall capacity by around 10 per cent.

The new operator will also be required to help facilitate the East London Line Extension, part of the London Underground network, from 2010, as well as the 5.5 billion Thameslink Programme, both of which will provide a significant boost to capacity in London.

On top of this, the DfT is expected to push for the introduction of smartcards across the franchise, similar to the Oyster cards used for travel in London.

The winning bidder is likely to be named next summer, the franchise operating from September 2009 until July 2015.

Shares in Stagecoach fell 4p to 280p, while National Express fell 14p to 964p.