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Should Grand Central order the new Hitachi Trains?

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Clarence Yard

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Before, Grand Central orders new stock, I believe it would have to be able to renew it's passenger license for at least 50 years to make it cost effective to hire that new stock.

Firstly, it’s a Track Access Agreement being granted by the ORR, not a Passenger License, which is a completely different thing and not connected at all with Economic Regulation.

Secondly, it will probably be 7 to 10 years if they are renewing with new Hitachi stock. The ORR allow you an adequate rate of return on your submitted business plan, not an excessive one and your TAA term will be based on that.

The differential in lease cost between old and new stock isn’t usually that much. Financing charges can affect things but if GC aren’t going for additional vehicles, it should be fairly straightforward. You have to go some to get a 12 to 15 year TAA but increased financing charges could play in here.

The default for any OA operator is a five year extension, if it is a straight renewal. The ORR always assume you have the right to continue.
 
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RobShipway

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Citation needed.

Lumo and Hull Trains ordered brand new stock. Do they have 50 year licenses?
Both are owned and operated by First Group as was Trans Pennine Express, who also operate GWR that also has IET stock running on it's services. Grand Central is a subsidiary of Arriva UK Trains. What division of Arriva UK Trains operate IET trains? Unless Arriva Cross Country or Chiltern Railways leases IET AT300 trains in the near future, then I cannot see Grand Central doing the so.

Firstly, it’s a Track Access Agreement being granted by the ORR, not a Passenger License, which is a completely different thing and not connected at all with Economic Regulation.

Secondly, it will probably be 7 to 10 years if they are renewing with new Hitachi stock. The ORR allow you an adequate rate of return on your submitted business plan, not an excessive one and your TAA term will be based on that.

The differential in lease cost between old and new stock isn’t usually that much. Financing charges can affect things but if GC aren’t going for additional vehicles, it should be fairly straightforward. You have to go some to get a 12 to 15 year TAA but increased financing charges could play in here.

The default for any OA operator is a five year extension, if it is a straight renewal. The ORR always assume you have the right to continue.
My apologies, yes it was track access agreement that I meant. I cannot see Grand Central getting their money's worth if they renew for 7 - 10 years with Hitachi stock, I know that the charges for used or new stock are not that much different nowadays, but if Grand Central only gets the default 5 year extension, I can only see them using the class 180 and 221 units. For Grand Central to change to something more environmentally friendly, there has to be something that the government can offer to force them to change from diesel operated units to bi-mode or full electric units.

You also have to think about what impact that this will have on both Heaton and Crofton depot's. I believe the class 180 units are stored at Heaton, but serviced at Crofton, as is the Cross Country 220/1 units. On the basis, that soon there will be more class 221 units becoming available, I am more inclined to think that for the next 5 years or more those will be used even if it is to totally replace the usage of class 180 units.
 

Energy

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Both are owned and operated by First Group as was Trans Pennine Express, who also operate GWR that also has IET stock running on it's services.
Doesn't matter. The 803s are on a 10 year lease, if Lumo doesn't get extended then they go back to Beacon Rail, not FG. Same for Hull Trains but for Angel Trains.
I cannot see Grand Central getting their money's worth if they renew for 7 - 10 years with Hitachi stock, I know that the charges for used or new stock are not that much different nowadays, but if Grand Central only gets the default 5 year extension, I can only see them using the class 180 and 221 units.
I don't think you are understanding. Arriva/GC write the business case with an acceptable rate of return and the time period needed by the business case is the extension.

If its business as usual with no significant extension then it is usually a 5 year extension.
For Grand Central to change to something more environmentally friendly, there has to be something that the government can offer to force them to change from diesel operated units to bi-mode or full electric units.
Yes, lower operating costs. DMUs are heavy and expensive to maintain.
You also have to think about what impact that this will have on both Heaton and Crofton depot's. I believe the class 180 units are stored at Heaton, but serviced at Crofton, as is the Cross Country 220/1 units. On the basis, that soon there will be more class 221 units becoming available, I am more inclined to think that for the next 5 years or more those will be used even if it is to totally replace the usage of class 180 units.
Alstom are mainting the 805/807s for Avanti, they can have a similar arrangement for Grand Central.
 

RobShipway

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Doesn't matter. The 803s are on a 10 year lease, if Lumo doesn't get extended then they go back to Beacon Rail, not FG. Same for Hull Trains but for Angel Trains.

I don't think you are understanding. Arriva/GC write the business case with an acceptable rate of return and the time period needed by the business case is the extension.

If its business as usual with no significant extension then it is usually a 5 year extension.

Yes, lower operating costs. DMUs are heavy and expensive to maintain.

Alstom are mainting the 805/807s for Avanti, they can have a similar arrangement for Grand Central.
Alstom maybe maintaining 805/807 for Avanti, but I would not expect Grand Central to change unless Cross Country and Chiltern Railways is able to change to use as an example IET units, as they are both part of the Arriva Rail Group. It makes more sense and would be cheaper if the Arriva Rail Group changed as a whole, rather than just one TOC within the group, despite their different needs.
 
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Energy

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Alstom maybe maintaining 805/807 for Avanti, but I would next expect Grand Central to change unless Cross Country and Chiltern Railways is able to change to use as an example IET units, as they are both part of the Arriva Rail Group. It makes more sense and would be cheaper if the Arriva Rail Group changed as a whole, rather than just one TOC within the group, despite their different needs.
Grand Central's only overlap with the rest of Arriva is both them and XC using Crofton. Otherwise they are operationally seperate.

The only benefit is that a larger order would get better pricing, but GC would be looking for 10-12 units anyway.
 

Clarence Yard

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Alstom maybe maintaining 805/807 for Avanti, but I would next expect Grand Central to change unless Cross Country and Chiltern Railways is able to change to use as an example IET units, as they are both part of the Arriva Rail Group. It makes more sense and would be cheaper if the Arriva Rail Group changed as a whole, rather than just one TOC within the group, despite their different needs.

It doesn’t work like that. Chiltern and XC are DfT TOCs and the DfT decide when to replace stock on their TOCs. The DfT will not allow joint procurement exercises between their TOCs and OA because of the Competition Act and the cross subsidy restrictions between the public and private sectors.
 

Mitchell Hurd

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Definitely Class 8xx trains should be ordered. 7 or 9 coaches - I'm surprised Hull Trains didn't order 7-car trains as 5 coach ones doesn't have that much more seats than a 180!
 

RobShipway

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It doesn’t work like that. Chiltern and XC are DfT TOCs and the DfT decide when to replace stock on their TOCs. The DfT will not allow joint procurement exercises between their TOCs and OA because of the Competition Act and the cross subsidy restrictions between the public and private sectors.
That maybe so, but to get a better price for any units I would expect them to change as a group as per @Energy comment above, as they would be looking for 10 - 12 units for Grand Central. Chiltern would be looking for 25 units to replace Mk3 coaches and Cross Country with 70 units to replace HST initially, then class 220/1 units.

The best bet though for the above, would not be IET units, but CAF Civity units. Class 397 bi-modes replacing replacing class 180/221 at Grand Central, Mk3 Coaches at Chiltern and replacing HST/class 220/1 units. Then have a smaller bi-mode unit based on class 195/196/197 chassis, but with class 331 body but with end gangways to replace the class 170 Turbostar units.
 

Neptune

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The best bet though for the above, would not be IET units, but CAF Civity units. Class 397 bi-modes replacing replacing class 180/221 at Grand Central, Mk3 Coaches at Chiltern and replacing HST/class 220/1 units.
I’m hearing a lot about these class 397 bi-mode units. Do you know that they are actually available for purchase or is this just the usual forum guess work? Yes CAF do have provision for a Civity bi-mode but do you know for sure if it is available for the UK Civity based class 397 (ps I know the answer to this one having had dealings with CAF so don’t just claim to know the answer or guess without substance please)?

Anyway if for instance GC did put an order in for a bi-mode fleet when their track access agreement is extended as per all OA operations then the best idea would be for the AT300 as this would mean that they can then be used with the other ECML fleets in rescue situations far easier.
Then have a smaller bi-mode unit based on class 195/196/197 chassis, but with class 331 body but with end gangways to replace the class 170 Turbostar units.
As above with the 397. Do you know for sure that these options are available for the current UK Civity fleet.
 

RobShipway

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I’m hearing a lot about these class 397 bi-mode units. Do you know that they are actually available for purchase or is this just the usual forum guess work? Yes CAF do have provision for a Civity bi-mode but do you know for sure if it is available for the UK Civity based class 397 (ps I know the answer to this one having had dealings with CAF so don’t just claim to know the answer or guess without substance please)?

Anyway if for instance GC did put an order in for a bi-mode fleet when their track access agreement is extended as per all OA operations then the best idea would be for the AT300 as this would mean that they can then be used with the other ECML fleets in rescue situations far easier.

As above with the 397. Do you know for sure that these options are available for the current UK Civity fleet.
Like most it is guess that there is a class 397 bi-mode available. However, CAF have are in the process of building bi-mode Civity trains for NSW Trainlink as per https://en.wikipedia.org/wiki/NSW_TrainLink_Regional_Train_Project.

I believe that CAF are also in the process of building 60 BEMU units for a German rail company, that are also part of the Civity family.

The problem with GC putting in an order with Hitachi for IET trains, it that they will not be seen much before 2035. This is due to Hitachi doing work on the HS2 trains, with completion work for those being done at Alstom Derby Litchurch Lane works. If GC where to get IET trains before 2035, then they is the possibility of trains coming out of the Pistoria factory in Italy, but even though they would have many British parts, like the class 802 units they would not be considered British made and up to British quality.
 

Clarence Yard

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The problem with GC putting in an order with Hitachi for IET trains, it that they will not be seen much before 2035.

Please stop - this is not what Hitachi is saying to potential customers, like me.

Please also stop this idea that Arriva will replace their fleet as one - it will not happen like that because each TOC will be seen differently by the DfT and also the lease end dates will probably be different, blunting the purchasing “as one” effect.

You could also very well have the situation where the Chiltern LHCS will be replaced by existing units or the new Chiltern standard unit and XC could see cascaded or cascaded and extended 800 series units. They will be seen as individual procurement exercises with the TOC now as the facilitator for the DfT, not the OG.
 

Neptune

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Like most it is guess that there is a class 397 bi-mode available. However, CAF have are in the process of building bi-mode Civity trains for NSW Trainlink as per https://en.wikipedia.org/wiki/NSW_TrainLink_Regional_Train_Project.

I believe that CAF are also in the process of building 60 BEMU units for a German rail company, that are also part of the Civity family.
Yes but is it available in the smaller UK spec Civity? Guesswork is all well and good but facts speak louder than guessing.
The problem with GC putting in an order with Hitachi for IET trains, it that they will not be seen much before 2035. This is due to Hitachi doing work on the HS2 trains, with completion work for those being done at Alstom Derby Litchurch Lane works.
Again, guesswork.
If GC where to get IET trains before 2035, then they is the possibility of trains coming out of the Pistoria factory in Italy, but even though they would have many British parts, like the class 802 units they would not be considered British made and up to British quality.
Quite a sweeping statement and makes this non 100% British human feel rather uncomfortable if I may say so. Tell me how the British built units are doing at the moment (thinking AT300’s and CAF civity’s with some rather high profile cracking issues) or is it just the non-British built ones suffering from this).
 

Energy

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That maybe so, but to get a better price for any units I would expect them to change as a group as per @Energy comment above, as they would be looking for 10 - 12 units for Grand Central. Chiltern would be looking for 25 units to replace Mk3 coaches and Cross Country with 70 units to replace HST initially, then class 220/1 units.
The better price is irrelevant as joint procurement is not allowed between an NRC and OA. An OA would be allowed to do a tag on order but that would be subject to the manufacturers pricing.
Like most it is guess that there is a class 397 bi-mode available. However, CAF have are in the process of building bi-mode Civity trains for NSW Trainlink as per https://en.wikipedia.org/wiki/NSW_TrainLink_Regional_Train_Project.
@Neptune has made it fairly clear that bimode is not an option in UK gauge. Squeezing in engines is more difficult than batteries.
If GC where to get IET trains before 2035
No. For a short run of units Hitachi could definetley find capacity at one of their plants.
the possibility of trains coming out of the Pistoria factory in Italy, but even though they would have many British parts, like the class 802 units they would not be considered British made and up to British quality.
British quality isn't that good compared to Krefield. If you are going of quality alone you'd want Kasado to build them.
Yes but is it available in the smaller UK spec Civity? Guesswork is all well and good but facts speak louder than guessing.
Are battery units available in the UK gauge?
 

Neptune

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Are battery units available in the UK gauge?
Yes that was a plan for a few 3 car 331’s for Windermere originally (4th car with batteries underneath).

Diesel/electric bi-mode is possible but very tight on a UK Civity and the chances of seeing it in an underfloor format on a UK Civity at this time is highly unlikely when better solutions exist.

For a run of up to a dozen units for GC Hitachi would definitely find space on the production line, most likely as a follow on order.
 

Kite159

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No they shouldn't. In an ideal world (and, I would argue, even in this less-than-ideal one) they shouldn't be ordering any new trains right now because Network Rail should be funded to carry out extensive electrification works as per their decarbonisation strategy.

Even with the best electrification work strategy, it will be years until Network Rail get round to wiring up the Durham Coast, by which time the 180s would have probably all fallen to pieces.

More wiring is needed, just focus on filling in the diesel islands which will allow a big bang changing from diesel to electric. I.e. Warrington Central/Blackpool South line
 

61653 HTAFC

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Would a Stadler FLIRT be suitable for Grand Central?
The FLIRT family is pretty flexible and versions in mainland Europe have been procured which are capable of 200km/h (124mph), so it's probably safe to say that one could be produced which would meet the requirements of GC's routes.

That's not to say that it's likely, of course.
 

RobShipway

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It doesn’t work like that. Chiltern and XC are DfT TOCs and the DfT decide when to replace stock on their TOCs. The DfT will not allow joint procurement exercises between their TOCs and OA because of the Competition Act and the cross subsidy restrictions between the public and private sectors.

Please stop - this is not what Hitachi is saying to potential customers, like me.

Sorry, but all you have to do is the maths which is clear to anyone. The current class 805, 807 and 810 builds will take them to at least 2026. There is going to be 54 HS2 trains being built to start services in 2029 in both Hitachi Newton Aycliffe and Alstom Derby and Crewe. The building of those trains will complete in 2033. So pretty much the order book is full I would imagine for Newton Aycliffe. Since production of the class 805/807 was suppose to have started production at the end of 2019 to 2020 and did not start until 2021, then you have a production run which is two years behind schedule. So that to me means, that you will have the last HS2 trains built in 2035.

That means any order that you are making will be coming from a factory that is outside of the UK, which is not want I believe the Government wants, hence Siemens where forced to be opening a factory in Goole to be making the London Underground trains. Especially after the previous large train order where the trains where made in Krefield.

Yes but is it available in the smaller UK spec Civity? Guesswork is all well and good but facts speak louder than guessing.

Again, guesswork.

Quite a sweeping statement and makes this non 100% British human feel rather uncomfortable if I may say so. Tell me how the British built units are doing at the moment (thinking AT300’s and CAF civity’s with some rather high profile cracking issues) or is it just the non-British built ones suffering from this).
Apologies for making you feel uncomfortable, but I know that the UK Government is pushing to things like trains made here in the UK where possible to help encourage job growth. Being someone unemployed at moment looking for work, I hope that they succeed on their task.

British quality isn't that good compared to Krefield. If you are going of quality alone you'd want Kasado to build them.
That maybe the case and Kasado maybe the place where any orders after class 805/807/810 get made. The issue with that is the long shipment time to get those trains to the UK. Depending on their capacity, any future AT300 may come from Pistoria after the present 805/807/810 get made, I would suspect as shipment from there to the UK will be cheaper, as it can be done through the channel tunnel.
 

JonathanH

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There is going to be 54 HS2 trains being built to start services in 2029 in both Hitachi Newton Aycliffe and Alstom Derby and Crewe.
There aren't going to need to be anything like 54 HS2 trains, at least not in the timeframe you are describing. That at least creates some scope for Hitachi to want to fill its order books with other orders.
 

357

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which is not want I believe the Government wants, hence Siemens where forced to be opening a factory in Goole to be making the London Underground trains.
I don't see how the government can force a private company to get trains built in a certain country. GC is open access, not a DfT TOC.

For 10-13 units, nobody is going to build a UK factory.

So if the UK is unable to produce the required trains in the required timeframe - the only place to look is abroad.
 

Snow1964

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Like most it is guess that there is a class 397 bi-mode available. However, CAF have are in the process of building bi-mode Civity trains for NSW Trainlink as per https://en.wikipedia.org/wiki/NSW_TrainLink_Regional_Train_Project.

I believe that CAF are also in the process of building 60 BEMU units for a German rail company, that are also part of the Civity family.
If you want to include CAF, perhaps should also be thinking of variant of SNCFs Oxygene. It is a 200km/h (125mph) articulated inter-city EMU. First one is under test at Velim

Originally ordered under name of CAF confort 200, 28 were originally ordered for Paris - Toulouse / Clermont-Farrend, and now another 20 for Bordeaux - Toulouse - Montpellier - Marseilles as options under the 75 train framework agreement. Link has photo of first one

First 7 trains are being in Spain, remainder at Reichshoffen (Eastern France) so wouldn't meet any UK factory requirements if that was a need.

Of course GC isn't really big enough to lead a framework agreement, but it ought to be able to agree to piggyback of someone else's order for standard design

Not that any UK operator seems to have any interest in a regional / intercity EMU with low floor for level boarding, just opting for IET types or local trains

 

JonathanH

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So if the UK is unable to produce the required trains in the required timeframe - the only place to look is abroad
Who, apart from the quoted poster, is saying that there isn't capacity in the UK to produce new trains?
 

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paul1609

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Citation needed.

Lumo and Hull Trains ordered brand new stock. Do they have 50 year licenses?
Open access operators rely on their fares income to lease new trains The fact that Lumo and Hull Trains can justify that running simple serices that largely operate on the ECML doesn't mean that GC can do the same post pandemic.
 

Energy

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Sorry, but all you have to do is the maths which is clear to anyone. The current class 805, 807 and 810 builds will take them to at least 2026. There is going to be 54 HS2 trains being built to start services in 2029 in both Hitachi Newton Aycliffe and Alstom Derby and Crewe. The building of those trains will complete in 2033. So pretty much the order book is full I would imagine for Newton Aycliffe. Since production of the class 805/807 was suppose to have started production at the end of 2019 to 2020 and did not start until 2021, then you have a production run which is two years behind schedule. So that to me means, that you will have the last HS2 trains built in 2035.
Hitachi are not telling their customers 2035.
That means any order that you are making will be coming from a factory that is outside of the UK, which is not want I believe the Government wants, hence Siemens where forced to be opening a factory in Goole to be making the London Underground trains. Especially after the previous large train order where the trains where made in Krefield.
London Underground was awarded by TfL and has half the order built in Austria.
That maybe the case and Kasado maybe the place where any orders after class 805/807/810 get made. The issue with that is the long shipment time to get those trains to the UK.
The shipping time isn't that bad, month or two max.
If you want to include CAF, perhaps should also be thinking of variant of SNCFs Oxygene. It is a 200km/h (125mph) articulated inter-city EMU. First one is under test at Velim
Why? They've already produced the 397, you could manage the GC routes on batteries.
Of course GC isn't really big enough to lead a framework agreement, but it ought to be able to agree to piggyback of someone else's order for standard design
Framework agreements are really just options. Unless you are Arriva you can't easily use those options so instead it's a tag on order which is subject to whatever price the manufacturer wants.
Open access operators rely on their fares income to lease new trains The fact that Lumo and Hull Trains can justify that running simple serices that largely operate on the ECML doesn't mean that GC can do the same post pandemic.
It bodes well. And the cost of new vs old isn't that much.
Yes that was a plan for a few 3 car 331’s for Windermere originally (4th car with batteries underneath).

Diesel/electric bi-mode is possible but very tight on a UK Civity and the chances of seeing it in an underfloor format on a UK Civity at this time is highly unlikely when better solutions exist.

For a run of up to a dozen units for GC Hitachi would definitely find space on the production line, most likely as a follow on order.
Thought that was the case. The 397s has 2 trailer vehicles so fitting batteries shouldn't be too difficult.
 

RobShipway

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There aren't going to need to be anything like 54 HS2 trains, at least not in the timeframe you are describing. That at least creates some scope for Hitachi to want to fill its order books with other orders.
Who, apart from the quoted poster, is saying that there isn't capacity in the UK to produce new trains?
I don't see how the government can force a private company to get trains built in a certain country. GC is open access, not a DfT TOC.

For 10-13 units, nobody is going to build a UK factory.

So if the UK is unable to produce the required trains in the required timeframe - the only place to look is abroad.
I was not saying that the UK would not be able to produce here, but other than CAF and Siemens for quite a few years you are going to be having the factories in Newton Aycliffe, Derby and Crewe busy with producing parts and making HS2 trains. Since the Hitachi and Alstom production lines are behind schedule with making trains in their production lines, that will be impacting the building of HS2 trains and any trains there onwards I would suspect.

@357 The exception might be Stadler, although those trains would need to be built in Europe. If it is to a manufacturer with a UK base, then you have Siemens building the new underground trains, which just leaves CAF. But I would think that even CAF, would not build 10 - 13 trains, unless there is follow on orders which is where as I stated before comes the orders from both Cross Country, Chiltern Railway and if the rumours are true, LNER as well.

@RobShipway I think it would be really useful if you could share your credentials when it comes to rolling stock procurement. Just so we can balance it against @Clarence Yard's actual experience.
I am just someone that has worked in IT for the last 30 years or more and has a keen interest in transport in general and where manufacturing in the UK is heading.

The problem you end up having is that the people of the UK, expect a lot of things that are made here in the UK, whether it is cars from Nissan in Sunderland, engines from the various diesel and petrol engine plants around the country. The problem you also have is how the country is being run by the UK Government. The issue you have is that in the last few years, it is has been for the most part more costly to be building things in this country since we came out of the EU, than it was before. This is why manufacturers such as Honda, closed down their plant in Swindon. However, the shutdown did not just impact the workers working at the factory, it impacted the businesses that relied on the setup of that factory. The same is true of the factories for CAF, Siemens, Alstom and Hitachi.

Now, at the point in time the original class 800 trains where being assembled, Hitachi was on a separate line building the class AT200 class 385 trains. I am presuming possibly wrongly, that Hitachi at Newton Aycliffe has one production line doing class 805/807 units and the other production line building the class 810 units? If it was me, I would be asking what is the timescale of completion for these units? Now, I know that the production of the 80 units of class 800 went from 2014 to 2018, which is four years. Now you have 13 5 car class 805 units that where started to be constructed back in 2021. How many of those 13 class 805 have been built in that 2 years?

Now the class 807 began in 2020, again how many of the 10 units have been built?

Construction also began in 2021 of the 33 5 car class 810 units. Unlike the class 805/807 units the class 810 units will be fully built here in the UK, whereas as the 805/807 are being built as far as I know in the Kasado works in Japan, as well as Newton Aycliffe.

Now for arguments sake let's say the building of the class 807 finishes next year and the class 805 in 2025. That is then the point that Hiatchi I believe are due to begin work on building works for the HS2 trains. At the same point in time in 2025, the building work for the class 810 trains should be complete. If it was me, I would be asking are both production lines at Newton Aycliffe going to be used for building work for HS2 trains? If not then where is the capacity that Hitachi says that they have coming from, because it is presume either Kasado or Pistoria?

Sorry, but you are clearly talking from an armchair using no actual relevant experience. @Clarence Yard is talking from experience of actually discussing orders with Hitachi themselves.
Yes, I am. But I am also trying to make sure that UK engineers have continued employment and that less and less orders for trains are built outside the UK for the UK. Because, without those orders there is not follow on business that goes to other UK businesses whether in IT, food etc........... If that is not followed through, then we are then faced potentially with the same scenario that happened through the 1980s - 1990's.
 

Energy

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Yes, I am. But I am also trying to make sure that UK engineers have continued employment and that less and less orders for trains are built outside the UK for the UK.
Hitachi likely have space in the UK, they coped building the 385s and 800/801s at the same time, they'll be fine building a few for GC with only the comparatively small Avanti and EMR orders.
 

The Middle

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I am just someone that has worked in IT for the last 30 years or more and has a keen interest in transport in general and where manufacturing in the UK is heading.
Funnily enough that fits exactly the same description as the guy on twitter this week that was spouting that all the MK5s were getting scrapped.

But to answer my original question that would be a 'no' on the rolling stock procurement experience.
 

357

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Who, apart from the quoted poster, is saying that there isn't capacity in the UK to produce new trains?
Nobody - I was talking about that posters hypothetical scenario where the government insist trains are built in the UK
 
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