Rail fares and franchises - Transport Committee Contents

Supplementary memorandum from the Association of Train Operating Companies (ATOC) (RFF 01A)

1.  At the session on 4 February 2009, David Mapp undertook to ask ATOC members if they would provide the Transport Committee with information about the financial details per franchise.

  This information might perhaps be more appropriately sought from the Department for Transport, which is the only body that has this information in aggregate. It is also worth noting that train operators are constrained by the terms of their confidentiality clauses from giving details of their franchise agreements with DfT, and that some of this information will also be commercially confidential.

  2.  Our table of current franchises is set out below, and includes open access operators:

FranchiseFranchise period Description
Arriva Trains Wales

(Arriva Trains Ltd)

December 2003 to December 2018Arriva Trains Wales operates a mix of long distance, regional and local rural services in Wales, including the Valley Lines network of services around Cardiff, and also in the English border counties and to Manchester, Liverpool and Birmingham.

(National Express Group)

May 1996 to May 2011c2c operates an intensive, mainly commuter, service into London Fenchurch Street from south east Essex.
Chiltern Railways

(Deutsche Bahn AG)

March 2002 to December 2021Chiltern Railways operate passenger train services throughout the M40 corridor between Birmingham and London. Their passengers are a mix of commuters, business and leisure travellers.

(Arriva Trains Ltd)

November 2007 to April 2016, with a provision for termination after six years if certain performance criteria are not met. CrossCountry operates a network of long distance services between Scotland, North West and North East England through to the South West of England, Bournemouth and Brighton. Also between:

  —  Birmingham, Leicester and Stansted Airport

  —  Cardiff, Birmingham and Nottingham.

East Midlands Trains

(Stagecoach Midland Rail Ltd)

November 2007 to March 2015, with a provision for termination after 6 years if certain performance targets are not being met. It operates train services between London, the East Midlands and Yorkshire (Leicester/Nottingham/Derby/Sheffield/Leeds) and all the central England services groups linking Nottingham/Derby/Worksop/Lincoln/Cleethorpes/Skegness/Leicester/Cambridge. Also the trains between:

  —  Derby and Crewe/Matlock

  —  Liverpool and Norwich

  —  Doncaster and Peterborough

There is a mixture of leisure, business and commuter travel.

EurostarN/AOperates high speed international train services between London/Brussels/Paris (centre and Disneyland Paris), the Alps and Rhone Valley.
First Capital Connect

(First Group)

April 2006 to March 2015First Capital Connect (FCC) operates trains between Bedford and Brighton via central London and also between Luton and Sutton via Wimbledon. It serves five major stations in central London and two airports - Gatwick and Luton.

FCC also runs commuter and local services between London Kings Cross and Moorgate to Peterborough and Cambridge, as well as longer distance services to Ely and Kings Lynn.

At the end of the fourth year the franchise will automatically continue for another 2 years if performance improvement targets are met. Subject to the DfT's agreement the franchise will then continue for up to three further years. This flexibility is necessary to facilitate work on the Thameslink project

First Great Western

(First Group)

April 2006 to March 2016 (Final three years dependent on service performance achieving agreed targets) First Great Western (FGW) operates high-speed train services between London Paddington, South Wales, the Cotswolds and the West Country. These trains serve a mix of commuting, business and leisure customers.

FGW also provides semi-fast and stopping services for commuters, business and leisure travellers, throughout the Thames and Kennet Valleys, the Cotswolds, to Stratford-upon-Avon, and on the North Downs line between Reading and Gatwick Airport, as well as a mix of long distance and local urban and rural services in the West and South West of England.

First ScotRail

(First Group)

October 2004 to October 2011 (extended to November 2014) First ScotRail operates the vast majority of the passenger rail services in Scotland, and its services extend across the border to Carlisle and Newcastle. It also operates the Sleeper services between London and Glasgow, Edinburgh, Inverness, Aberdeen and Fort William.
First TransPennine Express


February 2004 to January 2012First TransPennine Express operate predominantly long distance inter-urban services linking major centres of population across both North East and North West England including Newcastle, Middlesbrough, Leeds, Manchester, Liverpool and also Manchester Airport. It also operates trains between Manchester and Glasgow/Edinburgh.
Grand CentralN/AGrand Central is a open access operator and provides a limited number of through London Kings Cross/Sunderland via Hartlepool services
Heathrow ExpressN/A Operates dedicated high speed services between London Paddington and Heathrow Airport.
Hull Trains

(Renaissance Trains/FirstGroup)

N/AHull Trains is a open access operator and provides a limited number of through trains between London Kings Cross and Hull services
London Midland

(London & Birmingham Railway Ltd)

(Govia—Go-Ahead Group/Keolis)

November 2007 to September 2015 (final two years dependent on achieving performance targets) London Midland operates express services between:

  —  London Euston, Milton Keynes and Birmingham New Street (via Northampton)

  —  Birmingham and Liverpool

  —  Birmingham and Stafford/Stoke/Crewe

  —  London and Crewe

Also local service groups in the West Midlands conurbation and to neighbouring towns including Redditch, Leamington Spa, Worcester, Stratford-on-Avon, Hereford, Shrewsbury, Telford and Stafford.

In addition it operates the branch lines:

  —  Bletchley and Bedford

  —  Watford Junction and St Albans.

London Overground -contract managed by Transport for London

(MTR Laing)

November 2007 to November 2014, with a possible extension for a further two years. London Overground operates services between Richmond and Stratford via Willesden, together with the Willesden Junction/Clapham Junction and Gospel Oak/Barking lines, and also local services between London and Watford Junction.

It will also operate the East London Railway between Highbury & Islington and West Croydon from 2010.

Transport for London is responsible for the letting and management of the London Overground service.

Merseyrail—contract managed by Merseyside PTE


July 2003 to July 2028. To be reviewed in 7 years and then every 5 years to fit with the Merseyside Local Transport Plan Merseyrail provides services between Liverpool and Southport, Ormskirk, Kirby, Hunts Cross, New Brighton, West Kirby, Chester and Ellesmere Port.

Merseyside PTE is responsible for the letting and management of the Merseyrail Electrics service.

National Express East Anglia

(London Eastern Railways)

(National Express Group plc)

April 2004 to March 2011National Express East Anglia operates main line trains between London, Colchester, Ipswich and Norwich and local trains across Norfolk, Suffolk and parts of Cambridgeshire. Also local and commuter services into London from a range of places including Ilford, Hertford, Enfield, Chingford, Romford, Southend, Chelmsford, Colchester, Clacton and Ipswich. In addition it operates the Stansted Express service.

Its trains serve business and leisure travellers as well as daily commuters into London.

National Express East Coast

NXEC Trains Ltd

(National Express Group plc)

December 2007 to March 2015, the final 17 months being dependent on performance. National Express East Coast operates an intensive range of long distance services linking London Kings Cross with North East England and Scotland, together with the East Midlands, South and West Yorkshire, Humberside and Lincolnshire.
Northern Rail


December 2004 to September 2013 (final two years dependent on achieving performance targets) Northern Rail operates a range of inter-urban, commuter and rural services throughout the North of England, including those specified by West Yorkshire, South Yorkshire, Tyne & Wear (Nexus), Merseytravel and Greater Manchester PTEs.

(Govia—Go-Ahead Group/Keolis)

May 2003 to September 2009Southern operates predominantly commuter services between London, Surrey and Sussex, as well as services to Gatwick and Brighton, and South Coast services between Bournemouth, Brighton, Hastings and Ashford.

From June 2008 Southern will also run the Gatwick Express services, some of which will be extended to Brighton (from December 2008).

Since June 2008 it has also operated the Gatwick Express services.


(Govia—Go-Ahead Group/Keolis)

April 2006 to March 2014 (final two years dependent on achieving performance targets) Southeastern operates all the services in the south east London suburbs, the whole of Kent and part of Sussex, primarily commuter services to/from central London. From 2009 it will also operate domestic passenger services on the Channel Tunnel Rail Link.
South West Trains

(Stagecoach Holdings)

February 2007 to February 2017,(final three years dependent on achieving performance targets) South West Trains operate trains from London Waterloo to Woking, Basingstoke, Guildford, Southampton, Weymouth, Portsmouth, Exeter, Plymouth, Paignton and Reading, serving a mixture of longer distance and shorter distance travellers, with a high percentage of commuters. Also on the Isle of Wight.
Virgin TrainsMarch 1997 to March 2012 Virgin Trains operates services between Glasgow, North West England, North Wales, the West Midlands and London, and also between Birmingham and Glasgow/Edinburgh.
Wrexham, Shropshire & Marylebone Railway Company

Renaissance Railways/Deutsche Bahn AG)

N/AWrexham and Shropshire is a open access operator and run a limited train service between Wrexham, Shrewsbury, Wolverhampton, Birmingham and London Marylebone

  3.  The arrangements for revenue risk-sharing are separately negotiated for each franchise by DfT.

  4.  RPI +1 is calculated as a weighted average of regulated fares; the fare baskets for each TOC are calibrated, so that the sum totals of the amount of revenue generated by each regulated fare are used to determine whether RPI+1 has been achieved.

February 2009

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Prepared 27 July 2009