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11/06/2004
FirstGroup lines up as preferred bidder for ScotRail franchise
Aberdeen-based transport company FirstGroup has achieved "preferred bidder" status effectively clearing the way for the company to take over the running of the ScotRail franchise.
The current franchisee, international passenger transport company National Express Group, considered the favourite to win the bid had been keen to retain the ScotRail franchise which is worth around £1.75 billion over seven years.
But two episodes of industrial action and problems with new rolling stock had led to passenger disenchantment with the existing franchisee.
FirstGroup had faced a Competition Commission inquiry to allow its bid for the ScotRail franchise to proceed without any divestment of the company's substantial Scottish bus business.
However, the Commission’s findings and remedies were mostly behavioural in nature rather than calling for structural changes in the company's operations.
A third bid by Arriva - the cheapest - had been submitted with reservations that the low bid could have had an impact on service provision.
The ScotRail network connects Scotland's six cities: Glasgow, Edinburgh, Stirling, Dundee, Aberdeen and Inverness as well as providing services to the country's suburban and rural areas.
In effect, ScotRail, which provides over 95% of Scotland's rail passenger journeys is one of the biggest train operating businesses in the UK. It operates 2,000 services daily to 354 stations and the Scotland to London sleeper service.
FirstGroup's Chief Executive Moir Lockhead said: “This is terrific news for us and our new customers. We were the only Scottish company to be short-listed and are very proud to be given the opportunity to run Scotland’s railways.
“We already have an excellent track record for improving train services and look forward to doing the same in Scotland where we are a major bus operator and are confident we can bring real integration benefits for passengers.
“We have comprehensive plans to develop Scotland’s rail service and a real enthusiasm to get started. This is very encouraging for us as a company."
(SP)
The current franchisee, international passenger transport company National Express Group, considered the favourite to win the bid had been keen to retain the ScotRail franchise which is worth around £1.75 billion over seven years.
But two episodes of industrial action and problems with new rolling stock had led to passenger disenchantment with the existing franchisee.
FirstGroup had faced a Competition Commission inquiry to allow its bid for the ScotRail franchise to proceed without any divestment of the company's substantial Scottish bus business.
However, the Commission’s findings and remedies were mostly behavioural in nature rather than calling for structural changes in the company's operations.
A third bid by Arriva - the cheapest - had been submitted with reservations that the low bid could have had an impact on service provision.
The ScotRail network connects Scotland's six cities: Glasgow, Edinburgh, Stirling, Dundee, Aberdeen and Inverness as well as providing services to the country's suburban and rural areas.
In effect, ScotRail, which provides over 95% of Scotland's rail passenger journeys is one of the biggest train operating businesses in the UK. It operates 2,000 services daily to 354 stations and the Scotland to London sleeper service.
FirstGroup's Chief Executive Moir Lockhead said: “This is terrific news for us and our new customers. We were the only Scottish company to be short-listed and are very proud to be given the opportunity to run Scotland’s railways.
“We already have an excellent track record for improving train services and look forward to doing the same in Scotland where we are a major bus operator and are confident we can bring real integration benefits for passengers.
“We have comprehensive plans to develop Scotland’s rail service and a real enthusiasm to get started. This is very encouraging for us as a company."
(SP)
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