Scotrail Franchise - Abellio

[WatcherZero]

Why would you say bailing out when it put another £10m of its own money in.

 

[pemma]

So basically the RMT and Momentum made up a claim about profits being sent off to fund the Dutch railways and someone's checked the figures and proved the RMT and Momentum lied with the money in fact going the other way around. Why's that not a surprise?

 

[delt1c]

So basically the RMT and Momentum made up a claim about profits being sent off to fund the Dutch railways and someone's checked the figures and proved the RMT and Momentum lied with the money in fact going the other way around. Why's that not a surprise?

In the business world , profit is long term. I would be surprised if Abelo hadnt taken the Queen St closure into account in its long term trading.

 

[pemma]

In the business world , profit is long term.

Indeed. I think Amazon traded with a loss for something like 10 years but they had a plan to become profitable which worked for them. However, Abellio have a contract which does allow provision for Transport Scotland to terminate it early under certain circumstances so being in the red isn't ideal for Abellio.

 

[47271]

http://www.bbc.co.uk/news/uk-scotland-41388672

BBC news has a bit more on this. Still no comment from the usual suspects, LOL.

Abellio ScotRail's £10m loan as it records £3.5m loss

Abellio ScotRail made a loss of £3.5m in its first full year operating train services in Scotland.

New accounts also show that it was loaned £10m by a Dutch sister company last year.

In its first nine months as ScotRail franchise operator in 2015, the subsidiary of state-owned Dutch Railways made profits of almost £10m.

Tough trading conditions and a partial closure of Glasgow Queen Street station have been blamed for the loss in 2016.

Abellio took over the ScotRail franchise in April 2015 and made profits of £9.5m in the first nine months.

That led critics to accuse it of profiteering.
Tough conditions

Since then, the company has faced challenges, with delays and cancelled trains linked to major work on railway lines.

For 2016, Abellio ran at a loss of more than £3m, with no dividend paid to its Dutch parent company.

Abellio ScotRail said its turnover had been affected by tough trading conditions and the impact of the partial closure of Glasgow Queen Street station for 20 weeks.

The company faced heavy criticism after the reliability and punctuality of trains fell below the standard required of the franchise, but said performance had now improved year-on-year for six periods in a row.

It highlighted investment of £475m in the railways, the introduction of a new fleet of Hitachi-built electric class 385 trains and the "extensive" refurbishment of high-speed trains to serve Scotland's cities from 2018.

A spokesman for Abellio ScotRail said: "We're investing nearly half a billion pounds building the best railway Scotland has ever had, as part of our delivery of a highly-specified Scottish government contract.

"In doing so, we will deliver more seats and faster journey times for passengers, significantly improving customer service standards.

"We are making good progress with the recent independent National Rail Passenger Survey revealing that nine out of 10 customers are satisfied with ScotRail - equalling our best ever score."

He said ScotRail was the "best-performing large operator in the UK".

"However, it is not surprising that the challenges of last year have had a negative impact on our financial performance and we are disappointed to be recording a loss," he added

"As with previous years, and despite reports to the contrary, there will be no dividend paid to our parent company in the Netherlands."


Analysis by David Henderson, BBC Scotland business and transport correspondent

Company accounts can make for dull reading - but this year Abellio ScotRail's accounts are a bit of a page-turner.

They point to a drastic change in fortunes in just a year - and show how operating the ScotRail franchise can be a high-wire act, with no safety net.

The bottom line tells part of the story. Abellio ScotRail made a loss for 2016 of £3.5m. Compare that with its first nine months as ScotRail franchise operator, when it profited to the tune of £9.5m.

But for ScotRail Abellio, it gets worse. The company took a £10m loan from its sister company, Abellio Transport Holdings BV. And the accounts say there'll be no dividend paid to their parent company in the Netherlands, Dutch Railways - NV Nederlandse Spoorwegen.

It's a family affair, but it all points in one direction - ScotRail Abellio needed urgent help to get it out of financial bother.

So, on the face of it, these numbers make grim reading for the Abellio group.

But there may be relief that they haven't made a profit. Imagine the political furore if that had happened.

Remember, this set of accounts covers a year where ScotRail passengers felt the pain. Performance and punctuality on ScotRail services dropped into the red zone - below the limits set out in the franchise agreement.

This was partly due to major work on routes through the central belt, and Queen Street station in Glasgow being closed for 20 weeks.

However, the Scottish government was on Abellio's case - warning it might be stripped of the ScotRail franchise if it didn't shape up.

Since then, ScotRail's performance and punctuality has bounced back, to a point where the company boasts it's the "best performing large operator in the UK".

But the ScotRail franchise remains a political punchbag, and the Scottish government says public sector bodies will be allowed to bid to run Scotland's railway services next time the franchises are up for renewal.

So Abellio ScotRail's financial loss will take some of the political heat out of the debate - for now.

But its record on performance and punctuality will remain under the microscope.

 

[clc]

I wonder if the headlines in the Netherlands will be:-

"Dutch Tax Payers Subsidise Scottish Railways!"

 

[MisterT]

I wonder if the headlines in the Netherlands will be:-

"Dutch Tax Payers Subsidise Scottish Railways!"

No. Just "NS suffers a loss with Abellio Scotland": http://www.treinreiziger.nl/ns-maakt-verlies-abellio-schotland/

 

[Blindtraveler]

This certainly accounts for some of the quiet scaling down of some the stuff trumpeted at launch.

I know I have been slammed for saying this before but we never had it so as good when First were in charge and Id dearly love to see them back.

 

[WatcherZero]

Indeed. I think Amazon traded with a loss for something like 10 years but they had a plan to become profitable which worked for them. However, Abellio have a contract which does allow provision for Transport Scotland to terminate it early under certain circumstances so being in the red isn't ideal for Abellio.

Try 20 years, from 1997 till now with only three profitable quarters, had a quite profitable quarter in 2016 but profits have fallen 75% in the same quarter this year, it is essence a ponzi scheme always taking new shareholder/private equity investments and spending it then asking for more while shareholders have made a paper profit from rising share price. Snapchat and Twitter amongst others have never made a profit either, the goal is always to grow your paper valuation then sell up before people realise there is no way to make money from your business model.

 

[JohnR]

So basically the RMT and Momentum made up a claim about profits being sent off to fund the Dutch railways and someone's checked the figures and proved the RMT and Momentum lied with the money in fact going the other way around. Why's that not a surprise?

Not quite - they were using figures for the first 9 months of the franchise, which showed £1m a month going the other way. As I suspect, its very complicated, but there is no doubt that over the lifetime of the franchise, NS will make a profit out of Scotland. They wouldnt have done it otherwise.

 

[HH]

Not quite - they were using figures for the first 9 months of the franchise, which showed £1m a month going the other way. As I suspect, its very complicated, but there is no doubt that over the lifetime of the franchise, NS will make a profit out of Scotland. They wouldnt have done it otherwise.

What a rubbish assertion, backed by no facts. They will certainly have intended to make a profit; whether they actually make a profit is another matter. It's not guaranteed.

 

[HH]

In the business world , profit is long term. I would be surprised if Abelo hadnt taken the Queen St closure into account in its long term trading.

So would I; but I know Abellio quite well and there is a zero chance that they will have bid to make a loss in any year.

However, we've had a change in MD - in such circumstances I've known the incoming MD to want the worst possible picture painted of the "mess" he inherited so that next year's figures will look good in comparison. I'm not saying that's happened here, but I await 2017's numbers with anticipation...

 

[47271]

I don't understand what their problem was in FY17?

Apart from the never ending electrification and station rebuilding works, the conductors dispute, the complications of either refurbishing or replacing the entire fleet, the opening of a significant new route with no additional trains to run on it, the loss of four diesel sets to Southern, the resignation of the MD, and the endless and needless political agitation and posturing by every conceivable hack journalist, politician and union leader, it was a pretty quiet year for Scotrail. How on earth did they not manage to turn a profit?

I'm joking obviously, but surely little or none of this should have come as a surprise to them?

 

[jingsmonty]

158731 is done and out in traffic.

Very disappointed as I've been on 158731 & it still has the original seats/seating layout of the Haymarket sets (just recovered seats) - that's really taking the p*#s - the seats/layout on the Inverness units isn't great, but better than the Haymarket sets!

The whole 158 'senic' refurb is little more than a tart up/lick of paint - not a life extending full refurbishment. No upgraded traction package, same leaky cabs, same poor brakes, same misaligned panels, same useless aircon, same hopper windows with perished seals, etc....they just look like 27 year old trains withnew seat covers, lighting & livery.

 

[Blindtraveler]

Agreed, cheep and nasty compared to what was trumpeted and promised!

 

[cf111]

Very disappointed as I've been on 158731 & it still has the original seats/seating layout of the Haymarket sets (just recovered seats) - that's really taking the p*#s - the seats/layout on the Inverness units isn't great, but better than the Haymarket sets!

The whole 158 'senic' refurb is little more than a tart up/lick of paint - not a life extending full refurbishment. No upgraded traction package, same leaky cabs, same poor brakes, same misaligned panels, same useless aircon, same hopper windows with perished seals, etc....they just look like 27 year old trains withnew seat covers, lighting & livery.

The power outlets are a major improvement though especially on a 3 hour + journey to Thurso/Wick, but yes I don't see what's so "scenic" about them.

 

[Rhydgaled]

Very disappointed as I've been on 158731 & it still has the original seats/seating layout of the Haymarket sets (just recovered seats) - that's really taking the p*#s - the seats/layout on the Inverness units isn't great, but better than the Haymarket sets!

The whole 158 'senic' refurb is little more than a tart up/lick of paint - not a life extending full refurbishment. No upgraded traction package, same leaky cabs, same poor brakes, same misaligned panels, same useless aircon, same hopper windows with perished seals, etc....they just look like 27 year old trains withnew seat covers, lighting & livery.

The presentation slides from the franchise award (I think) showed all seats arranged in bays of 4 around tables that aligned with the windows. That would be a good scenic arangement; big shame if it hasn't been delivered.

 

[jingsmonty]

The power outlets are a major improvement though especially on a 3 hour + journey to Thurso/Wick, but yes I don't see what's so "scenic" about them.

Good point, the power outlets are a great thing to have. The units need a complete rebuild though - they were flimsy even when new

 

[ScottDarg]

Additional Dumfries Train Services Announced

Additional rail services have been announced on the line to Dumfries.

The Scotrail Alliance has said an extra five trains will run in each direction daily between Dumfries and Carlisle, creating an near-hourly service during the day.

It also said there would be a new early morning service from Dumfries to Glasgow, and a late evening return from Glasgow.

The new timetable comes into effect from 10 December

http://www.bbc.co.uk/news/uk-scotland-south-scotland-41775218

 

[stu77]

Additional Dumfries Train Services Announced



http://www.bbc.co.uk/news/uk-scotland-south-scotland-41775218

How many additional units will be required for this?

 

[HH]

How many additional units will be required for this?

It doesn't say how long the trains will be, so possibly only 2.

 

[Clansman]

Perhaps there's a sufficient number refurbished 158s to displace a few 156 workings out of Waverley or Queen Street?

 

[ScotTrains]

I wonder if these improvements will coincide with the introduction of catering services on the GSW. Is there a date yet when this will start?

 

[380101]

I wonder if these improvements will coincide with the introduction of catering services on the GSW. Is there a date yet when this will start?

Nothing been mentioned in any internal news that they plan to introduce it anytime soon. I highly doubt it will be introduced unless they suddenly come into a pile of money to recruit staff to work the trolley. There's roughly 250 vacancies still not filled within the Company at the moment - alot of them on train Ticket examiners and gateline staff. If they can't afford to fill revenue protection vacancies I don't see them filling or creating hospitality vacancies in the near future.

 

[380101]

Perhaps there's a sufficient number refurbished 158s to displace a few 156 workings out of Waverley or Queen Street?

The 158s are going to displace the 156s on the WHL at some point soon and with the 385 / 380s taking over 170 duties then that will free up 170s to displace 158s etc. 10 156s will leave Scotrail in 2018 but there will be enough displaced 156s from the WHL / Shotts route to beef up the GSW jobs.

 

[ScotTrains]

Nothing been mentioned in any internal news that they plan to introduce it anytime soon. I highly doubt it will be introduced unless they suddenly come into a pile of money to recruit staff to work the trolley. There's roughly 250 vacancies still not filled within the Company at the moment - alot of them on train Ticket examiners and gateline staff. If they can't afford to fill revenue protection vacancies I don't see them filling or creating hospitality vacancies in the near future.

I've just had a look at the franchise agreement. It states "By no later than 1st April 2017, the Franchisee shall operate a trolley-based catering service on all Passenger Services on the Kilmarnock-Carlisle Route." Looks like Abellio have failed again.

 

[marks87]

ScotRail to run latest-ever festive trains between Edinburgh and Glasgow

ScotRail is to run its latest ever Edinburgh-Glasgow trains for festive revellers - leaving after 1am.

The special late-night services will operate every Friday from tomorrow until Christmas .

They will leave Glasgow Queen Street at 12:06am and 1:09am and Edinburgh at 12:01am and 1:10am until 22 December.

The trains will call at Haymarket, Linlithgow, Polmont, Falkirk High, Croy, Lenzie and Bishopbriggs in both directions.

Read more at: http://www.scotsman.com/news/transp...rains-between-edinburgh-and-glasgow-1-4621428

The services on the 22nd (or morning of 23rd for the pedantic) should be, er, "fun".

 

[takno]

ScotRail to run latest-ever festive trains between Edinburgh and Glasgow



The services on the 22nd (or morning of 23rd for the pedantic) should be, er, "fun".

Edinburgh will be on 5am closing by then. I doubt I'll even have *started* drinking by 1

 

[InOban]

Only one entrance to both Waverley and Haymarket will be open, which should make it easier BTP to nip issues in the bud.

 

[Highlandspring]

I can see Edinburgh - Glasgow going 24hrs at some point in the future...