Stagecoach forms UK’s first ‘deep’ alliance with Network Rail

STAGECOACH has become the first of the UK’s rail operators to take charge of the tracks on some of its routes after government officials gave the green light to plans championed by chief executive Sir Brian Souter.

The Perth-based transport firm has joined forces with infrastructure operator Network Rail in a new alliance that will see a single senior management team take responsibility for both trains and track on the Wessex route operating out of London’s Waterloo station.

Stagecoach argues that the move will make its South Western Trains franchise more efficient. Souter, who has previously voiced support for a return to a more integrated “track and trains” system last seen in the days of British Rail, said: “This new model is a real opportunity to deliver change that will benefit both passengers and taxpayers and support our objective of growing the railway.

“By working more closely with Network Rail than ever before, and with aligned incentives, we can deliver a more customer-focused and more efficient railway for the long-term.”

Trade unions claimed that the move could compromise safety, but that was denied by Stagecoach. The firm added that no employees will be transferred as a result of the alliance and their terms and conditions will not change.

Each company continues to be “ultimately accountable” for its own areas of responsibility, Stagecoach said.

The alliance is a first for the privatised UK rail industry and has been approved by the Department for Transport and the Office of Rail Regulation. The tie-up will run until 4 February 2017, the expiry date of the South West Trains franchise agreement.

Stagecoach says the single management team will provide better efficiency for Waterloo, the UK’s busiest railway station with more 90 million passengers a year.

It is also promising better planning of track maintenance work, improved response to disruption and faster decision-making. The alliance is also expected to benefit rail freight operators who use the Wessex route.

The move follows the publication of the McNulty Report last year, which recommended a package of measures to reduce inefficiencies in the UK rail system. It also delivers a key element of the UK government’s “rail command paper”, issued in March, which called for closer co-operation between operations and infrastructure.

Stagecoach’s South West Trains and Network Rail had already been working together through the Wessex integrated control centre at Waterloo, which co-ordinates the response to incidents on the route.

Network Rail has recently moved to devolve operational responsibility to regional units.

Network Rail chief executive David Higgins said: “This marks a new phase in the evolution of Network Rail as we continue to push decision making away from the centre, empowering our front-line managers to run the railway more effectively, and forging closer working relationships with our customers, the train operators.

“Network Rail will continue to focus on delivering our obligations to all parties, protecting the interests of all customers whilst maintaining the seamless operation of the whole network.”

The alliance will be headed by Tim Shoveller, currently managing director of Stagecoach South Western Trains.