As you may know, the Government last Thursday made an announcement in connection with the East Coast rail franchise – and I thought it would now be helpful to write to you with an update.

 

On 1 July 2009, National Express Group PLC announced that discussions with the Department for Transport had not secured an improved outlook for the National Express East Coast rail franchise.  As a result, the loss-making franchise would continue to be supported by National Express in line with its franchise support commitments until the committed funding was fully utilised.

 

During the last five months, National Express has worked with the DfT and Directly Operated Railways (as the new operator) to ensure an orderly handover.  The franchise has continued to operate on all its existing terms, with the contractual support of the National Express Group.

  

In order to effect the handover from NXEC to DOR, the DfT issued a Termination notice last Wednesday evening, and as a result, the operation of the National Express East Coast franchise will transfer to Directly Operated Railways at 23.59 on 13th November 2009.

 

The background

 

In his statement to the House of Lords on I July, the Rt. Hon. Lord Andrew Adonis, Secretary of State for Transport, announced the establishment of a publicly owned holding company called Directly Operated Railways Limited.    The Transport Secretary also announced my appointment to lead this company.

 

The Government has promised that the continuity of service to passengers will be seamlessly maintained – and that there is no reduction in service standards. To that end, early in the summer, I assembled a team of highly experienced rail managers and we have been working with National Express East Coast to effect a smooth transition of the franchise into temporary public ownership. 

 

The new franchise

 

From the point of Transfer on 14 November, the operation of the East Coast franchise will pass to a company called East Coast Main Line Company Limited, which is wholly owned by Directly Operated Railways. The company will trade as East Coast.

 

Directly Operated Railways will be charged with the stewardship of the East Coast Main Line Company’s rail operations – and for preparing the organisation for subsequent transfer to a new franchisee in the future. The franchise will be re-let following an open competition and this process is likely to take around two years. It is the Government’s intention that a new private operator will re-commence the provision of services in 2011. 

 

Our commitment to you

 

I want to give you my personal assurance that we shall do everything possible to keep you well informed about what’s going on in the future – especially about our plans for the new franchise.

 

In summary therefore, it remains my firm intention that East Coast Main Line customers experience the absolute minimum of impact related to these changes.  Inevitably, by exception, the branding of the service will change, but importantly, things like ticketing, timetables and general service provision will remain unchanged.

 

We look forward to working with you in the future and I shall write to you again with more information, shortly.

 

 

Yours faithfully

 

Elaine Holt

Chief Executive

Directly Operated Railways Ltd.