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First Group preferred bidder for Scotrail

11/06/2004

First Group has been selected as the preferred bidder for the new Scottish passenger rail franchise, which will begin later this year.

Transport Minister Nicol Stephen said that higher standards of service for passengers year after year, on an expanding rail network, will be delivered through the next ScotRail franchise.

Final negotiations to conclude the details of the new contract are expected to be completed in the next few weeks.

As well as safeguarding all of Scotland's existing rail services, the new franchise will bring in a number of improvements. These include:

  • Improved punctuality and reliability of services
  • Improved passenger safety and comfort, including higher standards of cleanliness, security and travel information
  • Plans to reduce overcrowding so that no-one should have to wait more than ten minutes for a seat
  • Tougher penalties for poor performance

The franchise will also allow extra services to be added as and when necessary at a reasonable cost to help deliver the Executive's ambitious plans for the Scottish network.

Nicol Stephen said:

"This has been a hard-fought and challenging competition with each bid being subject to rigorous scrutiny. The decision to appoint First Group as the preferred bidder demonstrates our commitment to providing the best deal for passengers and the Scottish economy. Their bid offered the highest quality overall and the best value for money.

"Services which are more reliable, clean and comfortable are key to encouraging more people to choose to travel by train. Rail travel reduces congestion and protects the environment.

"We want immediate improvements for rail passengers in Scotland but also new services which get better year after year. The new franchise introduces more demanding performance targets year on year, to ensure continuous improvement over the life of the contract.

"We have already invested in 29 new trains, improved station security and better travel information. Passenger numbers are improving. Along with the Strategic Rail Authority we have also invested in longer platforms across the country to reduce overcrowding and accommodate the new trains. We expect First Group to build on this solid starting point, and make real improvements to the quality of rail services in all parts of Scotland.

"We have worked very closely with the SRA and SPT in this process and I would like to thank them for their dedicated efforts in securing this deal for Scotland's rail network."

The Scottish franchise is one of the largest in the UK with more than 3000 kilometres of track, 650,000 train journeys a year and more than 300 stations to run.

The three companies bidding for the franchise are Arriva Trains Ltd, FirstGroup plc and National Express Group plc. The SRA formally announced the preferred bidder to the Stock Exchange earlier this morning.

Scottish Ministers specify (by means of directions and guidance) and fund the ScotRail franchise. The Strategic Rail Authority acts as the procurement agent for the new rail franchise on the Scottish Executive's behalf and is a co-signatory to it with Strathclyde Passenger Transport (SPT) and the train operator. There has been close working between Executive officials, SPT and the SRA throughout the refranchising process.

The current franchise was due to end on March 31 2004 but the SRA extended the franchise by six months to allow a smooth handover. The new franchise will begin in October 2004, and will run for seven years with a possible extension for an extra three.

Page updated: Saturday, July 17, 2004