By Richard Johnstone | 24 March 2014
Controversial government plans to re-privatise train services on the East Coast railway line have taken a step forward after ministers published the invitation to tender for the contract.
In a statement to MPs today, Transport Secretary Patrick McLoughlin set out the invitation to tender, calling on three shortlisted firms to set out plans to improve passenger services on the line, which runs from London to Leeds and Edinburgh. The shortlisted bidders include the current operators of the West Coast line Virgin Rail Group, First Group, and a joint venture between Keolis and cross-channel operator Eurostar.
Since the then operator National Express gave up the East Coast franchise in November 2009, the line has been run by the government-owned Directly Operated Railways.
Plans to re-privatise the line were delayed following the high-profile collapse of the West Coast mainline deal in October 2012. This led to a review of the rail franchise programme, which found a need to strengthen Whitehall's capability to decide on contracts.
Under reforms that have followed the review, bids will now be examined by an independent Franchise Advisory Panel, which will provide a commercial perspective on the programme to assure ministers the award is based on sound advice and governance.
Labour has called for the line to be kept in public hands and for Directly Operated Railways to provide a public sector comparator for franchise bids.
However, rail minister Stephen Hammond insisted franchising to the private sector had been ‘a force for good’ on the railways.
‘The time is now right for us to find a long-term partner for the East Coast franchise, who can use their private sector expertise and knowledge to build on the significant investment planned for the route.
‘I want to see innovative bids that provide value for money for taxpayers and deliver improved services for passengers and local businesses.’
The tender document called on bidders to set out how they will support the rollout of a new fleet of intercity trains on the route when the eight-year franchise begins in March 2015. As well as continuation of services to all current destinations, bidders are also asked for suggestions on how to introduce faster and more frequent services from London to Leeds and Edinburgh by May 2020, as well as the potential for new destinations on the line – Huddersfield, Scarborough, Harrogate, Middlesbrough and Sunderland.
The Department for Transport said the winning bidder would be announced in November.
