InterCity West Coast explained

InterCity West Coast
Image Filename:Lichfield Trent Valley railway station MMB 05 390XXX.jpg
Caption:Virgin Trains Class 390 Pendolino passing through in August 2011
Nameforarea:Route
Regions:West Coast Main Line
Operator:Avanti West Coast
Dates:9 March 1997 – 7 December 2019
Stations:44
Stationsop:17

InterCity West Coast (ICWC) was a 1997–2019 railway franchise in the United Kingdom for passenger trains on the West Coast Main Line (and branches thereof), between London Euston, the West Midlands, North Wales, Liverpool, Manchester, Carlisle, Edinburgh, Glasgow, and other major destinations between.

The franchise was formed during the privatisation of British Rail and transferred to the private sector on 9 March 1997, when Virgin Trains commenced operations. It was due to be re-let in December 2012, with FirstGroup announced as the winning bidder; this decision was later reversed after the discovery of irregularities in the franchise letting process. In December 2012, Virgin Trains was awarded an extension to continue to run the franchise until November 2014, which was extended in several increments until December 2019.

The InterCity West Coast franchise was superseded on 8 December 2019 by the West Coast Partnership, currently operated by Avanti West Coast.

Services

, these were the services offered:

Route Calling at Stock Frequency
A – or via ,,,,,,,,,,, (1tp2h), (1tp2h),, then either or .
Trains call alternately at Oxenholme Lake District and Penrith. Before 1 pm, trains to Glasgow Central call at Penrith and trains to Edinburgh call at Oxenholme Lake District. After 1 pm, this is reversed.
1tph
B (1tph), (1tph),,
Trains call alternately at Watford Junction and Rugby.
Peak time services run to/from . Two daily services run to/from which are operated by Super Voyagers.
Pendolino & Super Voyager2tph
C –,, and ,
Certain trains are extended beyond to/from or .
1 train on Monday-Friday is extended to/from .
1 train on Monday-Friday runs between Bangor/Holyhead and .
1tph
D ,, . 1tph
E (1tph), ((1tph) /,),
2tph run via Stoke-on-Trent and 1tph runs via Crewe.
Trains via Stoke-on-Trent call alternately at Milton Keynes Central and Macclesfield. Off-peak trains via Crewe do not call at Milton Keynes Central.
3tph
F ,,,, (1tp2h), (1tp2h), .
Trains call alternately at Oxenholme Lake District and Penrith.
One daily weekday service operates to/from which is operated by a Super Voyager or Pendolino.
1tph

1997 franchise

See main article: Virgin Trains. The initial franchise was contested by Sea Containers, Stagecoach and Virgin Rail Group.[1] Each submitted two bids, one based on an all tilting train fleet, and another based on a combination of conventional and tilting trains.[2] On 19 February 1997, the Director of Passenger Rail Franchising awarded a 15-year franchise to Virgin Rail Group, with Virgin Trains commencing operations on 9 March 1997.[3]

In order for tilting trains to be operated, Railtrack was committed to upgrade the West Coast Main Line to allow 140 mph operation by 2005. In the wake of the collapse of Railtrack and the inability of its successor Network Rail to deliver the upgrade, the franchise was suspended in favour of a management contract in July 2002.[4] After projected costs greatly increased from £2.5 billion to £10 billion, there were cutbacks to the upgrade and the top speed was reduced to 125 mph.[5]

2012 franchise process

During 2011 and 2012 the Department for Transport (DfT) conducted a franchise competition, announced a winner, then cancelled the competition and refunded the costs of bids before any contracts were signed.

Bidding competition

With the franchise awarded in 1997 scheduled to end on 31 March 2012, the DfT started the refranchising process in January 2011 by inviting expressions of interest in the Official Journal of the European Union[6] for a 14-year franchise to run from 1 April 2012 to March 2026. The award of the franchise was stated to be based on the "most economically advantageous tender in terms of the criteria as stated in the specifications".[7] The franchise was the first to be offered under a new scheme rather than the previous "Cap and Collar" system, which provided for risk-sharing with government regarding future demand. The new scheme was intended to provide greater incentives for cost reduction by operators.[8] [9] Because of the increased future risks carried by operators under the new scheme, the government required a large financial surety to discourage early contract default.[10]

In March 2011, the DfT shortlisted Abellio, FirstGroup, Keolis/SNCF and Virgin Rail Group to bid for the franchise, which would run for up to 15 years.[11] In May 2011, a Draft Invitation to Tender was issued to the shortlisted bidders, which stated the franchise start date had been postponed until 9 December 2012.[12] In October 2011, the DfT announced that Virgin had been granted a franchise extension until 8 December 2012,[13] and in January 2012 issued the Final Invitation to Tender to the shortlisted bidders.[14] On 15 August 2012, the DfT announced FirstGroup as the successful bidder for the franchise,[15] promising 11 new six-carriage electric trains, direct services to Blackpool in 2013, and to Telford, and in 2016.[16]

Challenge

On 10 August 2012 a report commissioned by Virgin Rail Group, detailing concerns with the franchising evaluation process, was handed to the DfT.[17] [18] [19]

An e-petition was created to urge the government to reconsider its decision and to debate the bids in the House of Commons. The petition was set up independently, but backed by Virgin, and attracted large support, gaining 50,000 signatures within two days. The 100,000 signatures required for the petition to be considered for debate in Parliament was exceeded. The matter was debated in Westminster Hall on 17 September 2012.[20]

Following the public's response to Virgin's loss of the franchise, Louise Ellman, Chair of the Transport Select Committee, wrote to the then Secretary of State for Transport, Justine Greening, asking her to delay the signing of the new contract until the committee had a chance to explore the matter.[21] Virgin had offered to run the line on a 'not for profit' basis while this took place.[22] Despite public and political pressure for an independent review of the deal, the DfT declared it would not delay the signing of the contract once the ten-day standstill period had expired. On 28 August, Virgin Trains announced it would seek a judicial review of the franchise decision, preventing the contract being signed, claiming civil servants had "got their maths wrong with FirstGroup". The DfT responded, stating that they were confident the selection process was robust.[23] [24] In September 2012, the DfT began making arrangements for the franchise to pass temporarily to West Coast Main Line Limited, a subsidiary of Directly Operated Railways, in the event that a judicial review was granted.[25] [26]

Cancellation

On 3 October 2012, the government announced it was cancelling the franchise competition after discovering significant technical flaws in the bidding process, thus cancelling the decision to award it to FirstGroup. It was stated that civil servants had made significant mistakes in the way in which the risks for each bid had been calculated,[27] leading to too little default surety being required of bidders.[10]

Two independent inquiries were announced; one to investigate the failed competition, led by Sam Laidlaw of Centrica, with Ed Smith, both on the Board of the DfT; and the second led by Richard Brown of Eurostar, to investigate the wider franchise system.[28] Three civil servants were suspended.

During September 2012 the newly appointed Secretary of State for Transport, Patrick McLoughlin, had been warned of potential issues. On 2 October, he decided to cancel the franchise award.[29] [30] The DfT had been due in the High Court on 3 October 2012 to respond to a judicial review sought by Virgin Rail Group.

On 5 October 2012, one of the three suspended civil servants, Kate Mingay, released a statement to correct the reporting of her role in the franchising process.[31] She began legal proceedings against the DfT over her suspension, with a High Court hearing on 29 November 2012 rejecting her claim to have her suspension lifted.[32] It was announced on 6 December 2012 that all three of the suspended civil servants, including Mingay, would return to work.[33]

The government decided it would reimburse the four bidders for all costs incurred. This amounted to £39.7 million with a further £4.9 million paid to FirstGroup as reimbursement for mobilisation costs incurred.[34]

The Laidlaw report was published in December 2012, and found the DfT to be primarily responsible for the failure of the West Coast competition, having made several errors in its financial modelling.[35] The Brown report, published in January 2013, found no fundamental flaws in the bidding process but made recommendations for improvements.[36]

Direct awards

In October 2012, the DfT announced that Virgin Trains would continue to operate the franchise for between 9 and 13 months until a short-term interim franchise competition for the West Coast could be rerun.[37] [38] [39] In December 2012, Virgin was awarded a 23-month management contract until November 2014.[40]

In March 2013 the Secretary of State for Transport announced negotiations with Virgin to extend the franchise until 31 March 2017;[41] these were concluded in June 2014.[42] In 2016 the franchise was again extended[43] and in 2018 there was a further extension to March 2019, with an option for up to an additional year.[44] [45] This option was taken up by the DfT in December 2018, thereby extending the contract for a period potentially up to March 2020.[46] [47]

West Coast Partnership

In November 2016, the government announced that the InterCity West Coast franchise would be replaced by the West Coast Partnership. Avanti West Coast commenced operating the franchise on 9 December 2019.[48] [49]

Further reading

Notes and References

  1. Three shortlisted for West Coast . . 295 . 1 January 1997. 10.
  2. OPRAF receives final bids for West Coast . . 298 . 12 February 1997. 7.
  3. News: Virgin pledges tilt trains for West Coast. Michael. Harrison. 31 January 1997. The Independent. 4 October 2012.
  4. Web site: Supplementary memorandum by the Strategic Rail Authority . House of Commons . 22 July 2002.
  5. News: West Coast railway upgrade under threat. 24 July 2003. The Telegraph. 31 March 2020.
  6. Web site: Official Journal of the European Union notice for InterCity West Coast franchise . Department for Transport . 10 October 2012 . 11 January 2011 . dead . https://web.archive.org/web/20130606091753/http://assets.dft.gov.uk/publications/intercity-west-coast-franchise/ojeunotice.pdf . 6 June 2013 . dmy-all .
  7. Web site: OJEU Notice for the InterCity West Coast Franchise . Department for Transport . Department for Transport . 11 January 2011 . 8 October 2012 . dead . https://web.archive.org/web/20130606091753/http://assets.dft.gov.uk/publications/intercity-west-coast-franchise/ojeunotice.pdf . 6 June 2013 . dmy-all .
  8. News: Goodbye to the cap-and-collar . Robert . Wright . Rail Professional . March 2011 . 3 October 2012.
  9. Web site: New franchising programme . Philip . Hammond . Philip Hammond . 5 August 2011 . Department for Transport . 3 October 2012.
  10. News: How franchise hit the buffers . Mark. Odell. Rose. Jacobs . Financial Times . 3 October 2012 . 5 October 2012.
  11. Shortlisted Bidders for Greater Anglia and Intercity West Coast Rail Franchises . Department for Transport . 24 March 2011 . 29 September 2012 . dead . https://web.archive.org/web/20130606094818/http://assets.dft.gov.uk/publications/intercity-west-coast-franchise/franchisebidders.pdf . 6 June 2013 . dmy-all .
  12. Web site: Draft Invitation to Tender for the InterCity West Coast franchise. Department for Transport. 10 October 2012. 19 May 2011.
  13. West Coast passengers in line for 28,000 extra seats as franchise extension signed. Department for Transport. 27 October 2011. 4 October 2012.
  14. Web site: Invitation to Tender for the InterCity West Coast franchise. Department for Transport. 20 January 2012.
  15. New operator for West Coast rail passengers. Department for Transport. 15 August 2012.
  16. presentation. Delivering real and tangible benefits for customers. FirstGroup plc. Intercity West Coast rail franchise award. 15 August 2012. 8 October 2012. 8. Flora. Merton.
  17. News: Europa report alerted Government to West Coast flaws. Daily Telegraph. Alistair. Osborne. 4 October 2012. 7 October 2012.
  18. News: How a flawed process sank the government's rail strategy. Channel 4 News. Faisal. Islam. Faisal Islam.
  19. News: Department for Transport was warned over Main Line contract. The Week. 5 October 2012. 7 October 2012.
  20. Web site: E-petition relating to the West Coast Mainline franchise decision. Parliament of the United Kingdom. Westminster Hall Archive. 17 September 2012. 29 September 2012. video recording.
  21. Web site: From Mrs Louise Ellman MP, Chair. Transport Select Committee. Transport Select Committee. Louise. Ellman. Louise Ellman. 23 August 2012. 29 September 2012. Parliament of the United Kingdom. letter to Justine Greening.
  22. News: Virgin Trains offers to run West Coast 'for free'. 26 August 2012. 29 September 2012. BBC News Online.
  23. News: Virgin Trains takes West Coast Main Line court action . BBC . 28 August 2012 . 4 October 2012.
  24. News: Rail and air transport policy left in chaos . The Guardian . Dan . Milmo. Gwyn . Topham. Nicholas . Watt . 28 August 2012 . 29 September 2012.
  25. News: Government team in place to run West Coast Main Line. Daily Telegraph. 18 September 2012. 29 September 2012. David. Millward.
  26. West Coast Main Line Company Limited 04659516. 29 September 2012. Companies House.
  27. West Coast Main Line franchise competition cancelled. 3 October 2012. Department for Transport. 3 October 2012.
  28. News: Government cancels West Coast Mainline contract due to 'flaws' in bidding process. Andrew. Trotman. 3 October 2012. 3 October 2012. Daily Telegraph. London.
  29. News: West Coast Main Line franchise process a 'fiasco' says Branson. BBC News Online. 3 October 2012. 4 October 2012.
  30. News: West Coast Main Line: scrapped bid reveals chaos at the heart of government. The Independent. Alistair. Osborne. 6 October 2012. 7 October 2012.
  31. News: West coast mainline row: civil servant hits out at Department for Transport. The Guardian. Gwyn. Topham. 5 October 2012. 6 October 2012.
  32. News: West Coast rail: Kate Mingay accuses Government of making her a 'public sacrifice'. The Telegraph. Alistair. Osbourne. 29 November 2012. 30 November 2012.
  33. News: West Coast Mainline deal failure criticised. BBC News. 6 December 2012. 6 December 2012.
  34. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/209980/annual-report-and-accounts-2012-2013.pdf Annual Report 31 March 2013 page 186
  35. Web site: West Coast Main Line: final report of the Laidlaw inquiry. 6 December 2012. GOV.UK. en. 12 February 2018.
  36. Web site: The Brown review of the rail franchising programme. 10 January 2013. GOV.UK. en. 12 February 2018.
  37. News: Virgin in talks on West Coast route contract extension. BBC News Online. 15 October 2012. 15 October 2012.
  38. News: Virgin set for West Coast extension. Financial Times. Mark. Odell. George. Parker. 15 October 2012. 15 October 2012.
  39. Department for Transport to negotiate with Virgin on temporary operation of West Coast rail services. 15 October 2012. 15 October 2012.
  40. https://www.telegraph.co.uk/finance/newsbysector/transport/9725897/Two-year-extension-for-Virgin-Rail-after-West-Coast-chaos.html Two-year extension for Virgin Rail after West Coast chaos
  41. https://www.gov.uk/government/speeches/franchise-announcement "Railway plan puts new focus on passengers"
  42. https://www.independent.co.uk/news/business/news/virgin-trains-profits-gather-speed-as-west-coast-contract-is-extended-9547815.html Virgin Trains profits gather speed as West Coast contract is extended
  43. Web site: Franchise combines WCML services with HS2 in 'seamless integration'. 4 November 2016. Rail Technology Magazine. 12 February 2018.
  44. News: Virgin Trains directly awarded new InterCity West Coast franchise. 6 February 2018. Railway Gazette. 12 February 2018. en.
  45. Web site: Rail Update – Chris Grayling. 5 February 2018. Hansard. 12 February 2018.
  46. Web site: Virgin Rail Group West Coast rail franchise. 21 December 2018. RNS – London Stock Exchange. 25 December 2018.
  47. News: Outrage as Grayling awards Virgin rail franchise extension. Malnick. Edward. 23 December 2018. The Sunday Telegraph. Morley. Katie.
  48. https://www.bbc.com/news/business-49341772 FirstGroup replaces Virgin to run West Coast route
  49. Avanti West Coast launches . . February 2020. 6.