Franchise FAQ

how many rail franchises are there in the uk

by Noemie Senger Published 2 years ago Updated 1 year ago
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Full Answer

What is DFT in rail?

What is Thameslink franchise?

What is the West Coast Partnership?

When is the PQQ passport?

What is the route of Great Northern?

What is regional franchise?

When will the West Coast Main Line run?

See 4 more

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How many rail companies are there in the UK?

There are 28 major UK train operators across the UK, typically covering a geographical area or region.

Who owns the rail franchises in the UK?

Current franchisesFranchiseTOCOwnerGreater WesternGreat Western RailwayFirstGroupInterCity East CoastLondon North Eastern RailwayDepartment for TransportWest Coast PartnershipAvanti West CoastFirstGroup (70%) Trenitalia (30%)New CrossCountryCrossCountryArriva13 more rows

Are rail franchises ending?

New system will end franchising model and deliver a simpler, effective model through high performance targets and simplified journeys. Ministers today ended rail franchising after 24 years as the first step in bringing Britain's fragmented network back together.

How many different rail companies are there?

Approximately 630 freight railroads operate across the nearly 140,000-mile U.S. freight rail network. The seven “Class I” railroads —with 2021 revenue of at least $900 million — account for around 68% of freight rail mileage, 88% of employees, and 94% of revenue.

Does Germany own UK railways?

“Britain's railways are being sold off to European state-owned outfits with the profits from our fares – amongst the highest in Europe – subsidising operations abroad....70% of UK rail routes now owned by foreign states.Contract / RouteGrand CentralOperatorArrivaOperator Owner nameDeutsche BahnOperator Owner - CountryGerman state railways27 more columns•Jan 11, 2017

What will replace rail franchising?

Passenger service contracts. Passenger service contracts will replace rail passenger franchising.

Are trains in UK privatised?

The privatisation of British Rail was the process by which ownership and operation of the railways of Great Britain passed from government control into private hands. Begun in 1994, it had been completed by 1997.

How does rail franchising work UK?

Rail franchising is where contracts to operate passenger railway services in Great Britain are awarded to private train operating companies for a limited period of time following a detailed bidding and competition process.

Are trains nationalised in UK?

most rail infrastructure is owned, maintained and operated by Network Rail, a publicly-owned company (with some limited exceptions). most passenger services have been run by privately-owned train operating companies (TOCs) under multi-year franchises let by the UK, Scottish and Welsh governments.

What is the largest rail company?

What is the largest railroad company in the world? By market capitalization, Union Pacific Railroad ranks number 1 on our list of the top 10 largest railroad companies in the world in 2022. Union Pacific Railroad has a current market cap of USD 123.56 billion — the highest on this list.

What railroad Does Bill Gates Own?

Bill Gates sold about $940 million of Canadian National Railway Co. shares, trimming one of the largest holdings of the investment firm that controls his $117 billion personal fortune.

Which country has the most profitable railways?

China: the world's biggest exporter of train technology Most Western nations would have a lot to learn from China's high-speed rail network, one of the most efficient in the world, soon expected to reach 30,000km in length.

How do UK rail franchises work?

Rail franchising is where contracts to operate passenger railway services in Great Britain are awarded to private train operating companies for a limited period of time following a detailed bidding and competition process.

Do the government own the railways UK?

most rail infrastructure is owned, maintained and operated by Network Rail, a publicly-owned company (with some limited exceptions). most passenger services have been run by privately-owned train operating companies (TOCs) under multi-year franchises let by the UK, Scottish and Welsh governments.

Who holds the franchise for rail operation in a route?

TOCs are the consumer face of the rail industry, and generally apply for franchises to run specific routes from the Department for Transport. Network Rail's local routes and train companies work closely together to run the railways.

Who is Network Rail owned by?

We're a public sector company that operates as a regulated monopoly. Our income is a mix of direct grants from the UK and Scottish Governments, charges levied on train operators that use our network, and income, mainly from our commercial property estate.

Rail franchising schedule - GOV.UK

1 July 2019. Rail franchise schedule update. 20 July 2017. Rail franchising schedule as of July 2017 released. 6 December 2016. Updated to show the rail franchise schedule as of December 2016.

UK railway franchises and open access operators

Special circumstances and pioneers. Because it was not nationalised, the independent Liverpool Overhead Railway ran its own services over BR-owned track between Seaforth Sands [Liverpool Overhead] and Seaforth & Litherland [BR] stations.This arrangement lasted from 1 January 1948 until closure after services ended on 30 December 1956.

GUIDE TO RAIL FRANCHISING PROCUREMENT PROCESS - GOV.UK

• Introduction • Pre- Qualification • Consultation • The invitation to tender • Franchise award • During the franchise • The roles of Ministers and officials

List of companies operating trains in the United Kingdom

There are many companies operating trains in the United Kingdom, including the operators of franchised passenger services, officially referred to as train operating companies (TOCs), as distinct from freight operating companies.

Rail franchises: A guide for potential bidders - GOV.UK

1 . Rail franchises: A guide for potential bidders . This updated guide (which supersedes the document . Rail Franchises: Q&As, last updated in April 2014) is published to assist franchise bidders and other

Passenger rail franchising in Great Britain - Wikipedia

Passenger rail franchising in Great Britain is the system of contracting the operation of the passenger services on the railways of Great Britain to private companies, which has been in effect since 1996 and was greatly altered in 2020, with rail franchising being effectively abolished in May 2021.. The system was created as part of the privatisation of British Rail, the former state-owned ...

What is the recovery contract?

new ‘recovery’ contracts deliver government commitment to end the complicated franchising model and deliver a simpler, effective model to reform Britain’s railways

What is the first stage of the new railway system?

The first stage, today, is moving operators onto transitional contracts to prepare the ground for the new railway.

Why do airlines run almost full service?

Under current public health guidance, the intention is also for operators to run an almost full service to ensure there is space to help passengers travel safely.

Is it time to get Britain back on track?

Passengers will have reliable, safe services on a network totally built around them. It is time to get Britain back on track. Until passenger numbers return, significant taxpayer support will still be needed, including under the transitional contracts announced today.

Is privatization working?

The model of privatisation adopted 25 years ago has seen significant rises in passenger numbers, but this pandemic has proven that it is no longer working.

Who is the chairman of Royal Mail?

In 2018 Keith Williams, the chairman of Royal Mail, was asked to review the railways after a chaotic timetable change and the failure of some franchises. Today’s announcement, which has his full support, is the prelude to a white paper which will respond to his recommendations.

Who is the chair of the Williams Review?

Keith Williams, chair of the Williams Review, said:

Why did the operating companies cease to exist?

Operating companies have ceased to exist for various reasons, including withdrawal of the franchise, the term of the franchise has expired, bankruptcy or merger.

Is there a commuter service from Newry to Dublin Pearse?

The only exception is that Iarnród Éireann operate one early morning cross-border commuter service from Newry to Dublin Pearse every weekday, as part of its Dublin Suburban Rail operations.

Who owns the Northern Ireland train?

In Northern Ireland, most passenger trains are government-owned by Translink. The following brands are used:

When did the SRA re-franchize?

In 2000 the shadow SRA announced plans to use the re-franchising of the 18 shorter term (7-year) franchises expiring by 2004 to make various changes aimed at improving service grouping and lengthening franchises, with the aim of making them more robust and better able to invest in services. It aimed to have these proposals agreed by Autumn 2001, and published a timetable for the letting of 9 franchises in three tranches. These long-term plans were disrupted in 2001/2 by the impact of the Hatfield rail crash, which led to the nationalisation of Railtrack, the owner of the railway infrastructure, to create Network Rail. On 1 February 2001, the position of Franchising Director was abolished by the Transport Act 2000 and the passenger rail franchising functions were formally transferred to the SRA.

What happened to the Hatfield rail crash?

These long-term plans were disrupted in 2001/2 by the impact of the Hatfield rail crash, which led to the nationalisation of Railtrack, the owner of the railway infrastructure, to create Network Rail. On 1 February 2001, the position of Franchising Director was abolished by the Transport Act 2000 and the passenger rail franchising functions were ...

What is an open access operator?

An open-access operator is a train operating company that is not subject to franchising or concessions, but instead purchases individual train paths from a railway infrastructure company such as Network Rail. These operators include Eurostar, Grand Central, Heathrow Express, Hull Trains and Pre Metro Operations (providing a shuttle service on the Stourbridge Town branch line ).

What is passenger rail franchising?

Passenger rail franchising in Great Britain is the system of contracting the operation of the passenger services on the railways of Great Britain to private companies, which has been in effect since 1996 and was greatly altered in 2020. The system was created as part of the privatisation of British Rail, the former state-owned railway operator, ...

Why are some commentators criticising the re-franchising deals?

Some commentators have criticised the re-franchising deals by comparing the performance of the private-sector franchisees unfavourably with the public-sector operators. Advocates of the franchising system contrast public-sector operations with commercial operators, citing their ability to invest private capital into the franchises, financial returns to the Treasury and customer incentives such as free on-board Wi-Fi and loyalty card schemes.

How long are franchises?

The Treasury had initially envisaged franchises to be around 3 years long, to promote sustained competition, however as it became clear that potential buyers were not interested in such short terms, it was announced in 1995 that franchises would be around 5 to 7 years long, or longer if major investment was required. The first franchise agreements to be signed were for the South West and Great Western franchises, on 19 and 20 December 1995 respectively. The first passenger train service operated by a privatised franchise was the South West Trains 05;10 Twickenham to Waterloo on 4 February 1996, although this came after the first privately run service, which ironically was a rail replacement bus service covering the early morning Fishguard to Cardiff journey in South Wales, due to engineering works.

What is the CMA?

In January 2015, as part of its statutory duty to promote competition, the Competition & Markets Authority (CMA) launched a policy review to determine if there were opportunities to improve the current system outside the established areas of competition, namely the bidding process and the open access operators.

Information about the companies that serve our rail network

Train operating companies (TOCs) run passenger services, leasing and managing stations from Network Rail.

Related information

Rail network maps – maps showing all UK passenger rail routes (National Rail Enquiries)

What is the name of the railway that runs the Great Northern and Gatwick Express?

Following the loss of Southeastern, Govia is left with Govia Thameslink Railway (GTR), which runs the Thameslink, Southern, Great Northern and Gatwick Express services.

When did the London North Eastern Railway start?

The OLR launched the London North Eastern Railway (LNER) in June 2018, the London-Edinburgh-Inverness service, after operators Virgin and Stagecoach could no longer make the contract payments.

Did Southeastern fail to declare taxpayer funding?

Southeastern had failed to declare more than £25m of taxpayer funding that should have been returned, and deemed a serious breach of the franchise agreement’s “good faith” obligation by the UK government. Photograph: Gareth Fuller/PA

Is the Southeastern Railway public or private?

Southeastern railway services, one of Britain’s busiest commuter networks, has come back under direct public control, after the government stripped the private operator of its franchise agreement.

Who runs the London train line?

Train services on the line, which stretches across Kent and parts of East Sussex and connects them with London, will be run by the Department for Transport (DfT) from Sunday onwards under the Operator of Last Resort (OLR) scheme.

What is the Govia Thameslink contract?

13. Govia Thameslink’s contract with the Department contains performance measures, such as targets to limit the number of delays and cancellations. Penalties are charged if Govia Thameslink does not meet these targets. However, the franchise contract, like other contracts the Department has with train operators, defines industrial action as a ‘force majeure’ event, which means that the operator is not usually responsible for poor performance caused by industrial action.31 The Department ultimately decided that much of the disruption in 2016 and 2017 took place for reasons outside Govia Thameslink’s control. As a result, in spite of the significant disruption to passengers, Govia Thameslink has only paid £12.4 million in performance payments, to cover the period from September 2015 to September 2018.32

What is the most complicated upgrade we have ever attempted on the live UK rail network?

8. The Department told us that the Thameslink programme is “probably the single most complicated upgrade we have ever attempted on the live UK rail network”. It designed the franchise in a way which would, in its view, minimise the risk of disruption to passengers. This included awarding a single franchise covering the routes most affected by the Thameslink programme and not requiring the operator to take on the risk that revenue is not as high as expected (as is the Department’s usual practice) to avoid incentivising it to focus on maximising revenue at the expense of supporting the Thameslink programme.20 However, the Department did allow bidders to propose increasing the number of ‘driver-controlled’ or ‘driver-only operation trains, where the driver is responsible for opening and closing the train doors.21

What is a TSGN?

The Thameslink, Southern and Great Northern (TSGN) franchise, which operates services in South East England, is the largest of the Department’s passenger rail franchises and is also tasked with supporting delivery of the Thameslink Programme to improve services for passengers. The current operator, Govia Thameslink, started operating services on the franchise in September 2014. Since then, performance has been poor: 146,000 trains were cancelled between July 2015 and March 2017, and more trains have been delayed on this franchise than any other.

Is the Department of Transport's management of two of its most important franchises inadequate?

We are deeply concerned that the Department for Transport’s management of two of its most important franchises has been completely inadequate and could be indicative of wider weaknesses in its contract management capability. Passengers on the Thameslink, Southern and Great Northern franchise have suffered an appalling level of delays and cancellations since the franchise started in 2014. At one point, less than two thirds of trains arrived on time. This totally unacceptable state of affairs which caused misery for passengers was due to a catalogue of failures by the Department, Network Rail and the operator, Govia Thameslink. The Department was too ambitious about what could be achieved, and it overlooked the poor condition of the infrastructure of the rail network. The Department was also ambivalent about the risk of industrial action and neglected to engage constructively with rail unions. The Department failed to see, or chose not to see, the perfect storm of an ambitious upgrade programme coupled with plans to increase driver controlled operation of trains. While there has been some improvement recently and there are signs that Network Rail and Govia Thameslink are now working together more effectively, we remain sceptical that this will address the serious and deep-rooted problems we have identified. On the East Coast franchise, the Department has failed to learn the lessons from previous failures of the franchise, and has again allowed the operator to promise more than it could deliver. The Department will have to put in place new arrangements for running train services. We are concerned that the Department could terminate its contract with VTEC yet still give the operator the opportunity to run the franchise again in the future. The issues we have found with the East Coast and TSGN, and the small pool of potential bidders in the market, highlight the broken model of franchising.

Who is the Committee of Public Accounts?

The Committee of Public Accounts is appointed by the House of Commons to examine “the accounts showing the appropriation of the sums granted by Parliament to meet the public expenditure, and of such other accounts laid before Parliament as the committee may think fit” (Standing Order No. 148).

What is DFT in rail?

DfT is the franchising authority for the rail network.

What is Thameslink franchise?

A commuter interurban and regional franchise bringing together Thameslink and Great Northern services with Southern services.

What is the West Coast Partnership?

The West Coast Partnership rail franchise will combine the existing InterCity West Coast ( ICWC) services with the development and introduction of services on the new high speed network, High Speed 2 ( HS2 ).

When is the PQQ passport?

The pre-qualification questionnaire ( PQQ) passport for rail franchising covers all rail franchise competitions held between September 2015 and September 2019. Passport holders can express an interest for any future franchise competition without having to submit the same detailed technical information each time – saving time and reducing costs.

What is the route of Great Northern?

Great Northern runs between London King’s Cross and Moorgate to Hertford North, Peterborough, Cambridge and King’s Lynn. Southern operates predominantly commuter services between London, Surrey and Sussex, plus Gatwick and Brighton, as well as south coast services between Southampton, Brighton, Hastings and Ashford.

What is regional franchise?

A regional franchise consisting of a range of inter-urban, commuter and rural services throughout the north of England.

When will the West Coast Main Line run?

The new franchise operator will run services on the West Coast Main Line from 2019. They will also design and run the initial high speed services from 2026 and the redesigned ICWC services when HS2 is launched. The franchise operator will need to set a new global standard in rail travel; bringing together the highly successful existing conventional Intercity West Coast Mainline rail services and the new high speed services.

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Overview

History

The franchising system was created by the Railways Act 1993 as part of the privatisation of British Rail by the Government of John Major, and the first franchises came into effect in 1996. Prior to this, the railway system had been owned and operated by the government-owned corporation British Rail (BR), which has since been wound up.

Process

Railway franchises are decided by the UK Government's Department for Transport (DfT), who design the boundaries and terms of service, and award contracts to the train operating companies. Under the devolved administration arrangements, franchises for ScotRail and Caledonian Sleeper are awarded by Transport Scotland and the Wales & Borders franchise is awarded by Transport for Wales.

Franchises and concessions

A small number of urban railway systems are not franchised but are contracted out as a concession instead. Concession holders are paid a fee to run the service, which is usually tightly specified by the awarding authority. They do not take commercial risk, although there are usually penalties and rewards specified in the contract for large variations in performance.
Examples

Competition inquiries

Whenever there is a possibility through the franchising process for multiple franchises to come into the common ownership of a larger transport group, these can lead to referrals to the competition authorities for investigation (currently the Competition & Markets Authority (CMA)), if it is deemed there is a concern that market dominance might result in a monopoly. This can also be triggered when there is an overlap between train and bus services in a particular area or corri…

Controversies

According to the Railways Act 1993, the public sector cannot bid for rail franchises in Great Britain, although some rail franchises in the past have been taken on temporarily by a state-owned operation following an unsuccessful private franchise.
Some critics of the franchising system have suggested that state-owned orga…

See also

• Campaign to Bring Back British Rail
• Financing of the rail industry in Great Britain
• History of rail transport in Great Britain 1995 to date
• Impact of the privatisation of British Rail

External links

• Rail franchising – Department for Transport
• Rail passenger franchising up to October 2012 – Department for Transport, February 2013

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