30th March 2012
In this issue:- Industry developments this week
- New rail services
- Other stories in the press
- Holding group sharecheck
Industry developments this week
Shortlisted bidders for three railway franchises were announced by the Department for Transport.
A Financial Times piece made the following observations:
- FirstGroup was the only company to appear on all three shortlists, although it is the incumbent in two.
- It is good news for National Express, which had failed to make a shortlist for its own Greater Anglia franchise.
- Renfe, the Spanish operator, made no shortlists despite putting itself forward for all three.
The full shortlisted bidders are:
Great Western
- Arriva
- FirstGroup (incumbent)
- National Express
- Stagecoach
Essex Thamesside
- Abellio
- FirstGroup
- MTR Corporation
- National Express (incumbent)
Thameslink
- Abellio
- FirstGroup (incumbent)
- Govia (formed of Go-Ahead and Keolis)
- MTR Corporation
- Stagecoach
The full Department for Transport announcement is here.
New rail services
Transport Minister Keith Brown has ruled out plans for cross-border trains heading to and from the north of Scotland to stop at Edinburgh. BBC News
Other stories in the press
Professor Richard Parry-Jones was appointed chairman designate of Network Rail. Press release
Frontrunners forLondon’s mayoral elections announced their transport manifestos:
- Conservative London Mayor Boris Johnson said driverless trains could be running on the London Underground within the next decade. BBC News
- Labour’s Ken Livingstone said he will save Londoners on average £1,000 in fares if elected mayor. BBC News
Millions of London Overground passengers will soon be able to access a free Wi-Fi service at every station on the network. Rail.co
The Government has shocked the rail industry by selecting a septuagenarian to chair HS2, a project that will not be completed until 2033. The Independent
Holding group sharecheck
Summary:
Shares in FirstGroup sank 14 per cent on Thursday after a warning by the transport company that margins in its UK bus business would fall by more than a third this year. Financial Times
National Express shares soared after it posted strong 2011 results, up 12% to £180m, despite a greatly reduced rail operation. The group moved from reporting losses to record profits in two years. Financial Times
Go-Ahead is to start making contributions to the Treasury’s funds from April after reporting strong growth in its rail division. Daily Telegraph
- Shares in the group rose by almost 5 per cent in late December after it raised full-year operating profit forecasts on the back of strong passenger growth at its rail franchises.
