06/06/2007
inter city - railways limited ("ic-r"), a 50/50 joint venture between the Virgin Group of Companies and Stagecoach Group plc, today (6 June 2007) submitted its bid for the InterCity East Coast rail franchise with a commitment to set a new benchmark for service to passengers.
The bid has been developed through a partnership with incumbent operator Great North Eastern Railway (GNER) and extensive consultation with local stakeholders.
Passengers and taxpayers will benefit from an innovative package of improvements that build on the strengths of the current operation, including
- a multi-million-pound investment in trains, stations and systems
- improved punctuality and reliability
- better environmental performance
A spokesman for inter city – railways said: “New thinking and putting passengers first are at the heart of our plans. InterCity East Coast is a complex and challenging franchise. We believe our unique partnership of the most experienced and innovative operators on the UK rail network will deliver a new benchmark for the franchise's customers and communities.”
ic-r announced in April 2007 that GNER Holdings Limited will acquire a 10% stake in the new franchise holding company at the time of signing a new franchise agreement, if the ic-r bid is successful. Virgin and Stagecoach will jointly retain the remaining 90% shareholding as part of the commercial agreement between the parties.
The Government is expected to award the ICEC franchise in the late summer of 2007.
ENDS
For further information, please contact:
Stagecoach Group
Steve Stewart, Director of Corporate Communications
Tel: 01738 442111 or mobile 07764 774680
email: steven.stewart@stagecoachgroup.com
Virgin Group
Will Whitehorn, Director, Virgin Group
Tel: 020 7229 4738 or mobile 07941 228844
email: will.whitehorn@virgin.co.uk
GNER
Alan Hyde, Head of Communications
Tel: 01904 523515 (direct line) or 07771 831642 (mobile) or 01904 523072 (GNER Press Office)
email: alan.hyde@gner.co.uk
Sea Containers
Lisa Barnard, Director of Communications
Sea Containers Ltd
Tel: 0207 805 5550 or mobile 07887 823116
email: lisa.barnard@seacontainers.com
NOTES TO EDITORS
Stagecoach Group
Stagecoach Group is a leading international transportation group, with extensive bus and rail operations in the UK and North America. The Group's businesses operate around 12,000 vehicles and rolling stock, and employ around 27,000 people.
Stagecoach operates South West Trains, the UK's biggest commuter rail network, which runs nearly 1700 trains a day in the south-west of England out of London Waterloo. The Group also runs Island Line, the country's smallest rail network.
The Department for Transport announced in September 2006 that Stagecoach had been selected to operate the new 10-year South Western franchise, which combines South West Trains and Island Line and started in February 2007.
Stagecoach Group is shortlisted for the East Midlands rail franchise, which runs from November 2007.
Stagecoach operates the Supertram network in Sheffield on a 27-year concession running until 2024.
Stagecoach Group has signed a 10-year contract with Greater Manchester Passenger Transport Executive (GMPTE) to operate and maintain the 37km Manchester Metrolink tram system and the associated infrastructure. The contract is expected to commence in July.
The Virgin Group of Companies
The Virgin Group of Companies was established by Sir Richard Branson in 1970 and now encompasses more than 200 companies around the world, operating in sectors ranging from transportation to financial services, mobile telephony, entertainment and retail. Virgin Group's total annual worldwide sales will reach £11 billion in 2007.
Virgin Rail Group
Stagecoach and Virgin are partners at Virgin Rail Group (VRG), which operates the CrossCountry and West Coast inter-city rail franchises. Both franchises commenced in 1997.
Virgin Trains is the brand name of VRG, which is owned 51 percent by Virgin Group and 49 percent by Stagecoach.
VRG and the DfT agreed new commercial terms for the West Coast franchise in December 2006. The agreement put the franchise on new commercial terms that will run through to March 2012. The franchise had been operated on a management contract since July 2002 following the collapse of Railtrack and changes to the infrastructure upgrade to the West Coast main line, which prevented VRG from operating 140mph trains.
VRG is bidding to win the New Cross Country franchise, which is due to start in November 2007.
GNER
GNER runs fast, frequent passenger rail services between London King's Cross, the East Midlands, Yorkshire and Humberside, the North East of England and Scotland, carrying 17.4 million passengers a year.
Since starting in 1996, the company now runs 36% more services and has attracted 45% extra passengers.
GNER is currently refurbishing its 13-strong diesel High Speed Train fleet and installing new, more reliable, fuel-efficient engines. Last month, GNER introduced 12 extra services between Leeds and London, creating a half-hourly frequency every weekday and delivering 1.6 million extra seats a year on this busy route.
InterCity East Coast
InterCity East Coast is one of Britain's busiest long distance rail routes, which links London with several cities in both England and Scotland, including Edinburgh. Short-listed bidders will be asked to bid against a specification based on a consultation process undertaken by the DfT, which is proposing that current services are maintained and that the Leeds half hourly service will continue.
