Southeastern Franchise: Extension granted for minimum 18 months

[Trackman]

Because of COVID19, the whole situation is unclear but I would think that they've moved onto an Emergency Measures agreement and they'll pick up where they left off (ie 'normal' direct award or OLR) once the situation is returning to normal

That is what I have heard.
We'll have wait and see what happens after 6 months.

 

[Shug]

I don’t see how they can continue without a direct award despite the emergency measures in place. The contract runs out on Wednesday and if they are to continue the direct award or a contingency award has to be made to supplement the emergency measures. As far as I’m aware the emergency measures only apply to contracts during there period of validity, or am I missing something?

 

[cactustwirly]

How so?

Well based on my experience with TfL Rail, they're ok when there's no disruption.
But when there's the slightest issue the whole service implodes, and there is very little communication.
Contrast to GWR who seem on the whole vastly more competent, they are hugely better with communication, they tell you exactly what the problem is, rather than just "delays"

 

[class303]

Well based on my experience with TfL Rail, they're ok when there's no disruption.
But when there's the slightest issue the whole service implodes, and there is very little communication.
Contrast to GWR who seem on the whole vastly more competent, they are hugely better with communication, they tell you exactly what the problem is, rather than just "delays"

Well, the LO lines out of Liverpool Street are improved in my experience (compared to under GA). Far more stations barrierd now, with staff present at all stations till last service. Performance wise, I can't say I've noticed a difference.

 

[trek]

I don’t see how they can continue without a direct award despite the emergency measures in place. The contract runs out on Wednesday and if they are to continue the direct award or a contingency award has to be made to supplement the emergency measures. As far as I’m aware the emergency measures only apply to contracts during there period of validity, or am I missing something?

Yes this is still needed, Go Ahead have stated themselves at the end of last week that they are still negotiating a direct award whilst GTR is under emergency measures already. Indeed though they have left no time to TUPE staff to the OLR, although never say never...

 

[ComUtoR]

Direct Award till October 2021 option til March 2022

 

[Geogregor]

Direct Award till October 2021 option til March 2022

Yes, but as an extension of managment contract introduced in response to Covid-19.

...we have agreed a direct award contract with the Department for Transport (DfT) to run the railway in the South East for another 20 periods, taking us up to 16 October 2021, with the option for a further extension until 31 March 2022.

The new arrangement is a management contract, reflecting the DfT’s response to the COVID-19 pandemic, announced on 23 March 2020, removing exposure to changes in passenger demand and costs.

 

[ComUtoR]

Its another 2yrs of stagnation. Another sticking plaster covering up cracks and putting lipstick on a pig. The continual Direct Awards to Southeastern has ruined that part of the country and has slowly destroyed the franchise.

 

[JonathanH]

Full regulatory release

The Go-Ahead Group plc 4 Matthew Parker Street, London, SW1H 9NP
Telephone 020 7799 8999




PRESS RELEASE

30 March 2020

THE GO-AHEAD GROUP PLC

("GO-AHEAD" OR "THE GROUP")



Southeastern Direct Award Contract



The Go-Ahead Group today announces that the Department for Transport (DfT) has awarded a Direct Award Contract to Govia to continue operating the Southeastern franchise. The new contract commences on 1 April 2020 and will run until 16 October 2021, with the option to extend at the DfT's discretion until 31 March 2022.

Under its existing contractual terms, Southeastern's revenue is largely generated by passenger fares. The new arrangement is a management contract, reflecting the DfT's response to the COVID-19 pandemic announced on 23 March 2020, removing exposure to changes in passenger demand and costs. The management fee will be set at a maximum of 2 per cent of Southeastern's cost base before the pandemic began.

Approximately 90% of total Group revenues are now derived from contracted markets where there is no direct revenue risk from changes in underlying travel demand.

Southeastern will continue its immediate focus on providing services for key workers in this time of national crisis. Looking further ahead, during the course of the contract term Southeastern will deliver a range of customer experience improvements including exploring options to boost capacity as additional rolling stock becomes available, and continued partnership with Network Rail to develop a longer-term capacity, rolling stock and punctuality strategy for the Southeastern network beyond 2022.

Go-Ahead's subsidiary, Govia (Go-Ahead 65%, Keolis 35%), has operated Southeastern since 2006. Punctuality on Southeastern has increased by nearly 10% in the last two years, and customer satisfaction hit a six year high (81%) in the most recent National Rail Passenger Survey.

David Brown, Go-Ahead CEO, commented:

"This new contract provides continuity and stability during a challenging time. The immediate priority remains the health and wellbeing of colleagues and customers, and to support society by providing an essential service for key workers."

David Statham, Southeastern Managing Director, said:

"We continue to work with our industry partners to ensure that services are available to get people working in healthcare, food and other vital public services where they need to be. When customers are able to begin travelling as normal, we look forward to reconnecting our communities and further improving capacity, performance and customer satisfaction."

ENDS

For further information, please contact:

Holly Gillis, Head of Investor Relations

07766 305 594

Press office

07896 968 971






GO-AHEAD

Go-Ahead is one of the leading UK public transport operator companies. Our purpose is to be the local partner taking care of journeys that enhance the lives and wellbeing of our communities across the world. Employing around 30,000 people across our businesses, over 1.2 billion passenger journeys are undertaken on our rail and bus services every year. In addition to the travelling public, our customers include governments and local authorities. We are committed to contributing to tackling climate change, improving air quality and reducing social isolation, and aim to run a zero emission bus fleet by 2035.


BUS

Go-Ahead is one of the UK's largest bus operators. With a fleet of nearly 6,000 buses, we carry over two million passengers every day. We have a strong presence in London, with around 23 per cent market share, where we provide regulated services for Transport for London. Outside London, we principally serve high-density commuter markets, including the North East, Greater Manchester, East Yorkshire, East Anglia, South East and South West England. Internationally, we operate a bus contract in Singapore and two bus contracts in Ireland.


RAIL

The rail division operates two franchises in the UK, three contracts in Germany and one in Norway. In the UK, Southeastern and GTR (Govia Thameslink Railway) operate through our 65% owned subsidiary, Govia, which is 35% owned by Keolis. It is the largest rail operation in the UK, responsible for around 30 per cent of all UK passenger rail journeys through its rail franchises. In Germany and Norway, our contracts are run exclusively by Go-Ahead.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

END

 

[urpert]

“exploring options to boost capacity as additional rolling stock becomes available, ”

707s incoming :-P

 

[HH]

“exploring options to boost capacity as additional rolling stock becomes available, ”

707s incoming :-P

Yes, when SWR can release them. Might no longer be possible within this extension.

 

[Nicholas Lewis]

Dept of Transport release here

Has references on capacity but no specifics

In the longer-term, tens of thousands of passengers are set to benefit from improvements including increased capacity at peak times, more front-line staff and more fares trials for passengers. The direct awards will allow services to be stepped up when the rail network returns to normal following disruption from COVID-19.

Southeastern passengers will see space for thousands of extra passengers during the morning and evening peak times, while more front-line staff will be recruited to help passengers with their journeys

All implying extra stock although i wouldnt be surprised to see a reduction in commuting after this and that if 707's came over that would result in Networkers being taken out of use. If this does come to pass any train withdrawn should be retained in warm storage so its available when the economy picks up.

 

[jimm]

Its another 2yrs of stagnation. Another sticking plaster covering up cracks and putting lipstick on a pig. The continual Direct Awards to Southeastern has ruined that part of the country and has slowly destroyed the franchise.

Destroyed the franchise... Does the name Connex ring any bells in that regard?

 

[Goldfish62]

Yes, when SWR can release them. Might no longer be possible within this extension.

Pre current crisis and under the revised 701 introduction schedule they were due to be released by around the middle of next year. Even a six month delay would allow them to go by the end of next year.

 

[Meerkat]

more fares trials for passengers

Read it too quickly, thought it meant putting more passengers on trial!

 

[brad465]

It maybe worth mentioning there is a thread that spoke before about depot space speculation here that maybe of use: https://www.railforums.co.uk/threads/how-could-southeastern-get-more-siding-depot-space.189997/

 

[unkn0wn erRxr]

southeastern has got an extension until october 16th 2021
https://www.railmagazine.com/news/network/direct-award-franchise-extensions-for-southeastern-and-gwr

Southeastern .... will now continue under their existing ownership.

Southeastern will run until October 16 2021 but can be extended to March 31 2022 at the DfT’s discretion. Southeastern is operated by Govia.

Southeastern Managing Director David Statham said: “When customers are able to begin travelling as normal, we look forward to reconnecting our communities and further improving capacity, performance and customer satisfaction.”

 

[4-SUB 4732]

“Review possibility of new rolling stock when available”

Translation: “We considered some extra units but it was too difficult. Okay peasants, pay up. It’s January. We’ve done all we needed to for the Government.”

 

[3141]

“Review possibility of new rolling stock when available”

Translation: “We considered some extra units but it was too difficult. Okay peasants, pay up. It’s January. We’ve done all we needed to for the Government.”

Not sure where you get January from.

 

[4-SUB 4732]

Not sure where you get January from.

Well it’s just that as fare rises come every year people like to see improvements. Reality is this contract makes it possible to squirm out of even one extra unit...

 

[HH]

Pre current crisis and under the revised 701 introduction schedule they were due to be released by around the middle of next year. Even a six month delay would allow them to go by the end of next year.

The new franchise ends before then; well, until they call the extension.

 

[SlimJim1694]

southeastern has got an extension until october 16th 2021
https://www.railmagazine.com/news/network/direct-award-franchise-extensions-for-southeastern-and-gwr

Cue another two years of DCC and the company mugging us off over pay. Cue another two years of SE hemorrhaging drivers to other TOCs.

 

[jopsuk]

I appreciate it won't be a popular idea with commuters, but it would make sense to hold off on new train orders until whatever now replaces franchising is formed, and the structure of the London south central and south eastern operational areas is determined.

 

[ComUtoR]

but it would make sense to hold off on new train orders until whatever now replaces franchising is formed, and the structure of the London south central and south eastern operational areas is determined.

That's what has happened for the past crikey knows how many years now. Each Direct Award has kicked new stock down the line. The same line has been pedaled out. "we are working on a long term solution for rolling stock..." How long has that been now ? IF there was a new order for stock, it will have to go through a tendering process, bidding, award, concept design and specifications, building, testing, commissioning.... To wait ANOTHER 2yrs before that all begins is an extension that the SE commuters cannot afford.

 

[Goldfish62]

The new franchise ends before then; well, until they call the extension.

True...

 

[DynamicSpirit]

That's what has happened for the past crikey knows how many years now. Each Direct Award has kicked new stock down the line. The same line has been pedaled out. "we are working on a long term solution for rolling stock..." How long has that been now ? IF there was a new order for stock, it will have to go through a tendering process, bidding, award, concept design and specifications, building, testing, commissioning.... To wait ANOTHER 2yrs before that all begins is an extension that the SE commuters cannot afford.

Out of interest, is there really an urgent need for new stock (other than perhaps a small amount to provide some extra carriages to provide full length trains, and maybe up frequencies if there are any locations where there is capacity to do so)? As a regular passenger on SouthEastern, the current mainline stock seems perfectly comfortable. The metro stock a bit less so and the lack of toilets on the class 376's is not ideal; but it doesn't feel like it's reached the point where it's worth spending £tens, maybe hundreds, of millions on replacing them with slightly more comfortable carriages when there is so much else on the railways that the money could be spent on. Or are there problems with the current stock that are not noticeable to passengers?

 

[JonathanH]

Or are there problems with the current stock that are not noticeable to passengers?

The existing metro stock (ie Networkers) has doors which are too narrow and no stand back areas around the door which mean that they carry fewer passengers than a train with a better layout for crush loading might be able to manage.

On the other hand Networkers do have a very high number of seats.

As a regular passenger on SouthEastern, the current mainline stock seems perfectly comfortable.

I am not sure what the perceived problem with the 375 fleet is. There aren't enough 395s to meet demand.

 

[ComUtoR]

Out of interest, is there really an urgent need for new stock

(other than perhaps a small amount to provide some extra carriages to provide full length trains, and maybe up frequencies if there are any locations where there is capacity to do so)?

Pretty much that. Metro is bulging at the seams in the peak and by all projections its going to only get worse. Networkers have been amazing workhorses but how long can you flog them for ? For me I think the main issue is how long it would take to introduce a new fleet. If the franchise had changed all those years back then we would be looking at a new fleet being introduced now but realistically we are looking at 5+ years away. We need to get the ball rolling.

As a regular passenger on SouthEastern, the current mainline stock seems perfectly comfortable.

Metro is what needs to change. However, 375s in the peak are also heavily loaded.

The metro stock a bit less so and the lack of toilets on the class 376's is not ideal; but it doesn't feel like it's reached the point where it's worth spending £tens, maybe hundreds, of millions on replacing them with slightly more comfortable carriages when there is so much else on the railways that the money could be spent on. Or are there problems with the current stock that are not noticeable to passengers?

376s and the lack of toilets has always been an issue and a new fleet would go somewhere to resolve that. They still have lots of life left in them so I think they would stay and just the Networkers would go. A cl700 has 3 toilets on an 8-Car.

I firmly believe that the bits under the bonnet are important. We need a modern fleet for a modern railway. Passengers want plugs, WiFi, tables, and yes they want Toilets. The industry wants SDO, ERTMS, ABDO, ATO, Increased reliability, safety improvements, etc etc. That will only really come with new stock. New stock will also offer an element of future proofing. A lot of what they want to stick in trains is about the direction the railway is taking and what it needs to support the long term future. It's Chicken/Egg Get the trains in, upgrade the infrastructure or upgrade the infrastructure and then build the trains for it.

 

[Roast Veg]

There is also the looming threat of spare parts availability for networkers getting worse and worse - it will soon be very expensive to keep them at all reliable.

 

[hwl]

... It's Chicken/Egg Get the trains in, upgrade the infrastructure or upgrade the infrastructure and then build the trains for it.

Pretty much agree on all the rest. on this point realistically it has to be new stock first before infrastructure as this provides much more benefit (capacity/ reliability) earlier and provides the time to do infrastructure works.