Thursday 30 August 2018

Comment - Public bidders for next Scotrail Franchise?

380 019 wearing the Transport Scotland prescribed 'Saltair' livery calls at Paisley Gilmore Street.

This week it has been announced by Transport Scotland that a public body will be able to bid for the next Scotrail franchise, which will begin in 2025. I had not realised that it was as long ago as 2014 where I wrote a comment on the Inter City East Coast franchise, which was then under public ownership as Directly Operated Railways following the collapse of the National Express franchise. I asked at that time whether it was appropriate for a public bidder to enter the competition for the Inter City East Coast franchise- of course it didn't, and the contract was let out to a consortium of Virgin and Stagecoach. Fast forward to today and Inter City East Coast is once again in public ownership, now branded as LNER, after the failure of the Virgin/Stagecoach operation.
320 313 approaches Bellshill
I was particularly interested therefore to see the announcement this week that Transport Scotland would allow a public bidder to compete against the private sector in Scotland, something which the UK Government had previously refused to entertain. Transport Scotland have stated that 'Our consistent view over many years is that there ought to be a level playing field between the private and public sector in bidding for rail franchises.'- Almost exactly what I had suggested in my previous comment, and very similar to the model used in many parts of Europe where national operators bid (and sometimes win) against the private sector. This landmark ruling is a breath of fresh air for the UK rail industry and provides a real opportunity to challenge the current franchising system which has been so criticised in recent years. I will certainly be watching the next Scotrail bidding competition closely; whether or not a public bidder wins the franchise or not it will certainly shake up the system, and this can only be a positive step.
The full Transport Scotland statement can be read here.

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