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Great Western Franchise Extension 2020 to?

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XCTurbostar

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Has there been any reports on whether First Group and the DfT have agreed terms for the Great Western Franchise to be extended beyond April 2020?
 
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Nicholas Lewis

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Has there been any reports on whether First Group and the DfT have agreed terms for the Great Western Franchise to be extended beyond April 2020?
Well i suspect the Operator of Last Resort is going to have its hands tied up elsewhere! so my money is on announcement of further direct award to suit the Dept of Transport spin doctors especially as GWR are doing a reasonable job currently
 

Clarence Yard

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Negotiations between FG and DfT on “DA3” ongoing. Can’t say any more than that at the moment but a conclusion isn’t far off.
 

pdeaves

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Some public info (sorry, I didn't note the source) when it was first decided to try for a DA rather than refranchise had that the intention would be to run to 31 March 2022 with an option to extend to 31 March 2024. Those deeply involved in negotiations will know at this stage whether those dates will percolate through to the final agreement.
 

HH

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What is core and what is extension may have changed, but I think that March '24 is still a good date. And yes, judging by the panic, an agreement is imminent.
 

Nicholas Lewis

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What is core and what is extension may have changed, but I think that March '24 is still a good date. And yes, judging by the panic, an agreement is imminent.
First Great Western Ltd made a profit of £53.9m in year to 31/3/19 and paid its parent First Group £50m which is £10m more than previous year so i wonder if Dept of Transport will just roll over the current arrangements for another 2-4 years? Probably yes for expediency and also they know what pain they are in FTPE and FSWR and they really cant fall back on OLR for all franchises so need to keep them on board until Williams review and legislation change can be enacted.
 

pdeaves

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roll over the current arrangements for another 2-4 years?
In practice that cannot happen. The current arrangements could well include things like 'CCTV at stations A, B and C by 31 March 2020' [1]. If that has been achieved (as should be the case!) there is no sense in rolling it over, so there has to be a new bunch of things to agree in a contract.

[1] just one 'type of thing' example I plucked out of the air. There could be any number of projects/schemes of varying importance and value.
 

Nicholas Lewis

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In practice that cannot happen. The current arrangements could well include things like 'CCTV at stations A, B and C by 31 March 2020' [1]. If that has been achieved (as should be the case!) there is no sense in rolling it over, so there has to be a new bunch of things to agree in a contract.

[1] just one 'type of thing' example I plucked out of the air. There could be any number of projects/schemes of varying importance and value.
To clarify i mean roll over the management contract arrangements or whatever governs the fee that First Group earn for running the contract ie will D of T continue to allow the largess to carry on or try and negotiate it down. I'm sure they've had consultants working on the other elements you rightly point out will need amending although given this potential extension was provided for in the last extension im pretty sure GWR will have been asked there view.
 

Class 170101

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Negotiations between FG and DfT on “DA3” ongoing. Can’t say any more than that at the moment but a conclusion isn’t far off.

Does the shenigans on SWR have any nearing whether DfT have confidence or not in First Group regards GWR?
 

Clarence Yard

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No. No bearing on the GWR DA whatsoever.

There is no problem with how the DfT regard FG in running GWR. It will be whether any proposed deal is acceptable to the Treasury.
 

Nicholas Lewis

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No. No bearing on the GWR DA whatsoever.

There is no problem with how the DfT regard FG in running GWR. It will be whether any proposed deal is acceptable to the Treasury.
ORR in there letter https://orr.gov.uk/__data/assets/pd...ormance-letter-to-network-rail-2020-01-21.pdf to NR over passenger train performance were actually very complimentary about performance in Wales & Western route

Wales & Western (W&W) In your Interim Business Performance Report you illustrated that W&W is currently outperforming its train performance scorecard measures, slightly ahead of all the other Regions. In looking at CRM-P this conclusion is amplified. It is achieving the best level of performance in five years and it is outperforming other parts of Network Rail’s business in delivering against target. Your published report did not draw this out in much detail. Should this level of performance continue then we would like to showcase what positive action has been taken by the Region or indeed any collaborative action taken by train operators in support of Network Rail. You may be intending to report this in your published Annual Report & Accounts or the Annual Return, and where we agree we would also reflect this in our own end of year assessment

which must lend weight to the the case for at least exercising a two year extension of the DA whilst they have one good performing area.
 

RPI

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Does the shenigans on SWR have any nearing whether DfT have confidence or not in First Group regards GWR?
Whilst there are massive issues on both of these franchises FG have yet to default on any premium payments and most things that are late so far are down to suppliers and NR.
 

CptCharlee

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Ideally I would like to have a new franchise no direct awards. The whole franchise needs a longer term vision. With commitments to bring improvements.
Wonder if a new DA will have clauses to say following the Williams Review the DfT could end it early etc
I do wonder if any changes would occur with a new DA.
 

Nicholas Lewis

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Ideally I would like to have a new franchise no direct awards. The whole franchise needs a longer term vision. With commitments to bring improvements.
Wonder if a new DA will have clauses to say following the Williams Review the DfT could end it early etc
I do wonder if any changes would occur with a new DA.
Given the Sunday Times is running a piece on Northern going over to OLR this week they will want a DA to kick this one into the long grass. FGWR have introduced the new trains and timetable change and they pretty well do what they say they will unlike there sister FTPE
 

yorkie

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Can we please stay on the topic of Great Western Franchise Extension 2020.

If anyone wishes to post anything else, please create a new thread (or use an existing one if there isn't one already). Any ideas/suggestions belong in Speculative Ideas.

Thank you.
 
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I’m surprised they still haven’t announced what will happen after next month but my money is on GWR getting an extension.
 

CptCharlee

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Be interesting to see if Okehampton is mentioned in a new DA it's gone very quiet recently.
 

Clarence Yard

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DfT internal approvals seem to take up a lot of time these days. Don't expect any news on DA3 until later this month/early March.
 

coppercapped

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DfT internal approvals seem to take up a lot of time these days. Don't expect any news on DA3 until later this month/early March.
That's the problem with political entities - their clocks tick to a different time from those of us who live (or - now being retired - lived!) in a commercial world.

In the latter, time is money.

In the former, decisions emerge (they don't seem to be made... :frown:) in the fullness of time depending on the political calendar - elections, spending reviews, budget statements, autumn statements, ministers' speeches, at what point the 'political narrative' on any given topic has reached, and so on and so forth. The timing of any announcement must not embarrass the current minister. The costs of delay and prevarication are not carried by the political entities...
 

HH

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I’m surprised they still haven’t announced what will happen after next month but my money is on GWR getting an extension.
They have been in prolonged negotiations. Sign off is still 2+ weeks away.
 

jayah

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ORR in there letter https://orr.gov.uk/__data/assets/pd...ormance-letter-to-network-rail-2020-01-21.pdf to NR over passenger train performance were actually very complimentary about performance in Wales & Western route



which must lend weight to the the case for at least exercising a two year extension of the DA whilst they have one good performing area.
Isn't it amazing what can be achieved by replacing a fleet of 40yr old slam door diesel trains with electrics and then maintaining the old timetable for 2 years afterwards.
 

Nicholas Lewis

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They have been in prolonged negotiations. Sign off is still 2+ weeks away.
Thats been and gone i suspect First are being aggressive in pricing given the positive performance and the fact that OLR arent really in a position to pick this up with Northern fully occupying there limited resources
 

Clarence Yard

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Nothing of the sort. Please see my post of 4th February - it’s the usual rush and chaos of internal approvals on both sides together with getting all the paperwork (such as new or extended leases) together.

My estimate of late Feb/early March has slipped by a week or so but it is (at today) still on course for sometime in mid March.
 

Brissle Girl

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Let’s hope that when it’s announced it has greater passenger benefits than the one year extension to XC has resulted in. Though appreciate that any informed comment would be inappropriate prior to the announcement.
 

Kingham West

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There are more negotiations regarding a further direct award to XC going on.
The short extension is interim, and is interim, to keep show on road, as I understand it.
The real problem is there is no consultation with users, as these discussions are in secret.
So it’s what officials think users want, and the treasury will pay for.
Quite frankly users want seats, and a buffet..
 

hwl

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What makes you think that they won't just ignore consultation results?

It is a buffet or seats choice you can't have both.

Passenger numbers have increased and times have changed.

As you mentioned XC, a big problem there is trying to provide the main local service at the same time as providing a national level one. Changing that isn't easy or quick hence not for direct award and also need other TOCs to improve capacity and services.
 

Facing Back

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What makes you think that they won't just ignore consultation results?

It is a buffet or seats choice you can't have both.

Passenger numbers have increased and times have changed.

As you mentioned XC, a big problem there is trying to provide the main local service at the same time as providing a national level one. Changing that isn't easy or quick hence not for direct award and also need other TOCs to improve capacity and services.
I don't like it that I cant have both. I want both. I want investment so that I can get both when I travel long distance.

And I know its not overnight and any capacity increase in welcomed but our railways should be better and a lack of vision and long term planning and investment - at least visibly - makes me feel that we should do more
 

HH

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I don't like it that I cant have both. I want both. I want investment so that I can get both when I travel long distance.

And I know its not overnight and any capacity increase in welcomed but our railways should be better and a lack of vision and long term planning and investment - at least visibly - makes me feel that we should do more
I know I shouldn't, but I have to say that this shows appalling ignorance. The only way to get this is to have longer trains. Do you have the faintest idea how much extra that would cost? Are you going to pay for it?
 

Mollman

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I know I shouldn't, but I have to say that this shows appalling ignorance. The only way to get this is to have longer trains. Do you have the faintest idea how much extra that would cost? Are you going to pay for it?
And therefore we have the issue with any future of GWR (direct award or franchise).The main issue appear to be based on the DfT specification for the IEP contracts. No buffets and too many 10 car sets meaning either duplicating staff or one part of the train doesn't get a trolley service.
 
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