Government to run London to Scotland rail line after franchisee defaults

Jul 2 2009 Liverpool Daily Post

A MAJOR London to Scotland rail franchise is to be run by the Government, after giant transport group National Express refused to fund the loss-making East Coast Main Line beyond the next few months.

Transport Secretary Lord Adonis said it was “simply unacceptable” for National Express to “walk away” from the East Coast franchise.

And he warned there might be grounds to terminate the two other National Express rail franchises – East Anglia and the London to Tilbury and Southend operation c2c.

With National Express’s funding for East Coast expected to run out later this year, Lord Adonis has set up a new public organisation, East Coast Main Line Company, which will operate the line.

Lord Adonis said the Government planned to tender for a new East Coast franchise operator “from the end of 2010”.

He described National Express’s decision to refuse to continue funding the line as “regrettable and disappointing”.

He added: “It is simply unacceptable to reap the benefits of contracts when times are good, only to walk away from them when times become more challenging.”

National Express had been contracted to run East Coast until 2015, and this is the second franchise termination on the line following the early ending of GNER’s stewardship in 2007, which also followed financial problems.

Train drivers’ union Aslef said rail franchising had “started off as a pantomime, then become a farce and has now become a folly”.