SWR, C2C, LNER Prior Information Notices for direct award

Snow1964 · 2 Apr 2024

DfT has today issued 3 Prior Information Notices relating to rail contracts that expire in 2025

The rail contract between the Secretary of State for Transport and South Western Railway for the delivery of passenger services is due to expire on 25 May 2025.

No less than 36 months and a maximum of 96 months.

Contract for provision of commuter and regional rail passenger services on the UK conventional mainline rail system. These serve the key cities of London, Portsmouth, Southampton and Reading, and extend as far as Bristol, Exeter and Weymouth.

Services also operate between Ryde and Shanklin on the Isle of Wight. It is envisaged the services would run between:

(a) Ascot to Guildford

(b) Brockenhurst to Lymington Pier

(c) Portsmouth Harbour to Southampton Central

(d) Salisbury to Southampton Central

(e) Salisbury to Yeovil Junction (via Westbury and Castle Cary)

(f) Eastleigh to Romsey

(g) Ryde Pier Head to Shanklin

(h) London Waterloo to Weymouth

(i) London Waterloo to Portsmouth Harbour (via Haslemere and Botley)

(j) London Waterloo to Exeter St Davids

(k) London Waterloo to Guildford (via Cobham, Esher, and Bookham)

(l) London Waterloo to Alton

(m) London Waterloo to Basingstoke

(n) London Waterloo to Hampton Court

(o) London Waterloo to Shepperton (via Twickenham and Kingston)

(p) London Waterloo to London Waterloo via Kingston

(q) London Waterloo to Dorking (via Bookham)

(r) London Waterloo to Chessington South

(s) London Waterloo to Reading

(t) London Waterloo to Windsor and Eton Riverside

(u) London Waterloo to London Waterloo via Hounslow

(v) London Waterloo to London Waterloo via Richmond

(w) London Waterloo to Weybridge and Woking (via Brentford and Chertsey)

There is a mixture of leisure, business and commuter travel. These services would be similar to those currently operated under the South Western National Rail contract.

The rail contract between the Secretary of State for Transport and c2c for the delivery of passenger services is due to expire on 20 July 2025.

No less than 36 months and a maximum of 96 months.

Contract for provision of rail passenger services on the UK conventional mainline rail system. It is envisaged the services would run between:

(a) London to Shoeburyness

(b) London to Southend via Ockenden

(c) London to Grays

There is a mixture of leisure, business and commuter travel. These services would be similar to those currently operated under the Essex Thameside National Rail Contract.

The rail contract between the Secretary of State for Transport and LNER for the delivery of passenger services is due to expire on 22 June 2025.

LNER No less than 24 months and a maximum of 60 months.

Contract for provision of intercity rail passenger services on the UK conventional mainline rail system. It is envisaged the services would run between:

(a) London and Edinburgh. Some services are extended to Dundee, Aberdeen and Inverness

(b) London and Leeds. Some services are extended to Bradford, Skipton and Harrogate

(c) London and York. Some services are extended to Middlesbrough

(d) London and Hull

(e) London and Lincoln

(f) London and Newcastle

There is a mixture of leisure, business and commuter travel. These services would be similar to those currently operated under the London North Eastern Railway (LNER) services contract.

This prior information notice (PIN) informs the incumbent train operator that the Department for Transport seeks to obtain a direct award at the end of the current contract.

South Western rail passenger services: prior information notice

Prior information notice (PIN) for direct award of the South Western rail services contract.

www.gov.uk

Essex Thameside rail passenger services: prior information notice

Prior information notice (PIN) for direct award of the Essex Thameside rail services contract.

www.gov.uk

InterCity East Coast rail passenger services: prior information notice

Prior information notice (PIN) for direct award of the InterCity East Coast rail services contract.

www.gov.uk

RailUK Forums

LNW-GW Joint · 2 Apr 2024

It would seem unlikely that DfT can negotiate and confirm these direct awards before the general election, although they might try.
These are therefore likely to be the first test of Labour's policy of "returning franchises to public ownership when contracts expire".
It would also be an early test of their organisational policy (ie implementing their GBR equivalent).
I suspect they will all be added under the OLR umbrella initially (LNER being there already, of course).

YorkRailFan · 2 Apr 2024

I notice that the contract for LNER does not envisage services to run to Sunderland or Glasgow as they currently do.

Snow1964 · 2 Apr 2024

I would not be surprised if the current Government which manages to act like a zombie at times and doesn't get much done, will probably burn the midnight oil to award these before an election, just to annoy Labour Party

Big Jumby 74 · 2 Apr 2024

Snow1964 said:
I would not be surprised if the current Government which manages to act like a zombie at times and doesn't get much done, will probably burn the midnight oil to award these before an election, just to annoy Labour Party

I make a point of not normally getting involved in these sort of discussions, but you may well be correct, but if anyone (out there) thinks a change of 'colour' in Westminster will make anything better, then they will likely be sadly disappointed.....!

Recessio · 2 Apr 2024

Snow1964 said:
I would not be surprised if the current Government which manages to act like a zombie at times and doesn't get much done, will probably burn the midnight oil to award these before an election, just to annoy Labour Party

They managed it getting everything privatised before the 97 election...

LNW-GW Joint · 2 Apr 2024

Recessio said:
They managed it getting everything privatised before the 97 election...

LNER won't be an issue as no owning group is involved.
c2c is relatively small and I would have thought straightforward, but FS Trenitalia are the incumbents and their staying-power in the UK will be tested.
SWR is a large, complex TOC with many problems, and a 3-8 year horizon should require a detailed road map over that time.
It will also test FirstGroup/MTR's commitment to the task.
MTR is also positioning for the competitive bids for the next Elizabeth Line contract for TfL.

Class 170101 · 2 Apr 2024

Snow1964 said:
I would not be surprised if the current Government which manages to act like a zombie at times and doesn't get much done, will probably burn the midnight oil to award these before an election, just to annoy Labour Party

In a way I'm surprised they haven't gone for longer than 2 to 3 years core period with the option for extensions but instead gone for a longer core period say 6 to 8 years to stick it to the opposition even before they enter office.

Snow1964 · 2 Apr 2024

Class 170101 said:
In a way I'm surprised they haven't gone for longer than 2 to 3 years core period with the option for extensions but instead gone for a longer core period say 6 to 8 years to stick it to the opposition even before they enter office.

I think it would have complicated the South West one, if going for a 6 year minimum (from 2025) then got to factor in class 159 replacement as would be 40 years old by 2031.

Can't really leave it and only start thinking about replacement in 2031 as might be mid 2030s by time replacements enter service.

ainsworth74 · 2 Apr 2024

YorkRailFan said:
I notice that the contract for LNER does not envisage services to run to Sunderland or Glasgow as they currently do.

Keep up at the back! They were already announced as going a while ago now! :lol:

ScottGallagher · 2 Apr 2024

So these will all go to the incumbent operator subject to negotiations /going through the motions?

Snow1964 · 3 Apr 2024

ScottGallagher said:
So these will all go to the incumbent operator subject to negotiations /going through the motions?

Doesn't say that, now the notices are issued, in theory any organisation with experience could try and negotiate

I think they have already had extensions so automatically reawarding again would go against the Government's own value for taxpayers rules, although of course after some competitive comparison might be the incumbent gets it again

YorkRailFan · 3 Apr 2024

ainsworth74 said:
Keep up at the back! They were already announced as going a while ago now!

I thought it was open to consultation no?

LNW-GW Joint · 3 Apr 2024

Essentially the incumbent gets exclusive negotiating rights for the extension.
Of course they might decline the contact, or DfT could terminate negotiations, but that's unlikely - nobody has refused a direct award yet.
The Tories still maintain that rail contracts will eventually be put out to competitive tender, but that won't happen before the election.
For LNER, it's not really a negotiation unless DfT is unhappy with the OLR management team.

Clarence Yard · 3 Apr 2024

ScottGallagher said:
So these will all go to the incumbent operator subject to negotiations /going through the motions?

Yes, it isn’t a competitive tender. The PIN is to show that they are going through due process, not to open it up for others to get involved.

The only option that is really on the table is OLR, should the negotiations with the incumbent fail. The contract then goes to OLR - this fallback is standard procedure for all DfT Direct Award negotiations and OLR is usually used as the comparitor.

Snow1964 · 3 Apr 2024

LNW-GW Joint said:
Essentially the incumbent gets exclusive negotiating rights for the extension.

I am not sure it is exclusive, more first preference.

If it was exclusive then no one else (including OLR) is going to waste time and money offering a comparator.

ainsworth74 · 3 Apr 2024

YorkRailFan said:
I thought it was open to consultation no?

If you thought that was a consultation without a predetermined outcome I have a bridge to sell you

YorkRailFan · 3 Apr 2024

ainsworth74 said:
If you thought that was a consultation without a predetermined outcome I have a bridge to sell you

I was too optimistic after the ticket office closure consultation.

Gaz55 · 4 Apr 2024

Hasn't every private operator on the ECML failed for one reason or another? I can't see companies lining up around the block to want to take on that operation no matter what the Conservatives might want to rush through before the election.

Clarence Yard · 4 Apr 2024

They would if they had the chance because it’s fees only now, no real risk. You get millions each year for just “minding the store”.

But it isn’t an open competition so they won’t get a sniff.

PG · 4 Apr 2024

I wonder if First/MTR consider that this might be an opportune moment to say goodbye to SWR and let the OLR pick up the pieces?

JonathanH · 4 Apr 2024

PG said:
I wonder if First/MTR consider that this might be an opportune moment to say goodbye to SWR and let the OLR pick up the pieces?

Why would they do that if the contract is earning them money?

PG · 5 Apr 2024

JonathanH said:
Why would they do that if the contract is earning them money?

Perhaps if the level of return is lower than they desire?

HamworthyGoods · 5 Apr 2024

PG said:
Perhaps if the level of return is lower than they desire?

Which it isn’t if you look at FG trading statements.

I’m not sure what you’re trying to infer here and what pieces you refer to that need picking up?

SWR generally, NR infrastructure issues aside delivers the train service the DfT contracts it to do so.

DanNCL · 5 Apr 2024

Companies know that Labour intend to renationalise everything and they also know that Labour will almost certainly be in government before any of these contracts would actually begin. For C2C and SWR other than the incumbents companies will probably stay away. As for LNER, after what happened to all three private TOCs to have a go at it before, plus the political situation, any company would be mad to even consider a bid.

HamworthyGoods · 5 Apr 2024

DanNCL said:
Companies know that Labour intend to renationalise everything

I thought they only plan to bring DfT contract TOCs in house and leave everything else privately run (but not managed by DfT) as it is?

DanNCL · 5 Apr 2024

HamworthyGoods said:
I thought they only plan to bring DfT contract TOCs in house and leave everything else privately run (but not managed by DfT) as it is?

That’s what I meant, everything that they can renationalise. Obviously the open access operators aren’t part of that.

Snow1964 · 5 Apr 2024

JonathanH said:
Why would they do that if the contract is earning them money?

We don't know how much money a potential 8 year contract would earn, or if there would be risky performance clauses and penalties

LNW-GW Joint · 5 Apr 2024

DanNCL said:
That’s what I meant, everything that they can renationalise. Obviously the open access operators aren’t part of that.

But not freight and rolling stock, HS1, Eurostar, Heathrow Express etc.
Labour has given no hint how it would organise its railway.
Other parts of Labour are busy buttering up the private sector, realising that's where economic growth lies.
TfL still intends to contract out its concessions (Overground, Elizabeth Line etc).

Clarence Yard · 5 Apr 2024

Snow1964 said:
We don't know how much money a potential 8 year contract would earn, or if there would be risky performance clauses and penalties

There are no penalties in an NRC - it’s a “one way” fees contract.

And, in response to another poster, LNER is not open for bids. It will go to OLR. This procurement process is all about showing that they are directly awarding (hopefully) to incumbents in accordance with the rules, not inviting bids from third parties.

The Core Term Expiry Date in each contract is the date to watch out for if Labour want to take it back. It costs them nothing from that date onwards.

SWR, C2C, LNER Prior Information Notices for direct award

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