What gets you a franchise renewal?

[Oldgaloot]

Is there a political stance to take or some virtue signalling to indulge in which helps at franchise renewal time? Is it naive to suggest that running clean, warm, not too over-crowded trains on time and pricing fares reasonably should do the trick or is there something more?

This has possibly been covered elsewhere but I couldn't find it. Please move if required.

 

[Failed Unit]

To be honest when you look at some of the operators, it seems as long as your are not front page news at the time of renewal you can do anything to get away with anything.

In my opinion - niether Avanti or GTR should have had the franchise renewed. Both did. You get many arguements that a new operator would have the same problems (as we can see with Northern and TPE) but Avanti and GTR basically show you that the you can pretty much do what you like and keep your franchise. In the case of GTR Grant Shapps made a lot of noise, then became transport minister and renewed it. GTR still can't deliever their service.

 

[Clarence Yard]

There is no such thing now as a franchise. They ceased in 2020.

All the DfT TOCs are now on management contracts with all the key decisions for that TOC made by the DfT. The management contracts tend to get “renewed” to the incumbent operator as competitive tendering for rail contracts has now ceased, pending a new model for DfT rail operations.

If the DfT doesn’t like the incumbent operator, the contract goes to OLR, which is effectively just another form of DfT management “contract”.

 

[LNW-GW Joint]

The EU rules didn't allow for indefinite contract renewals, and limited them to 2 years, which was why Virgin had 4x2-year extensions for ICWC after 2012 until the 2019 competition that knocked them out.
DfT doesn't have to follow those rules any more, but neither do they want mass renewals at a time of great stress and uncertainty in the industry.
Abellio (NS) and DB have also left the UK passenger market recently, affecting the ownership of several contracts.
Current UK legislation requires periodic contract competition, even for the OLR TOCs, and also the devolved government TOC contracts like Scotrail and TfW.
Everybody is waiting for the new legislation but neither main party seems capable of telling us what it will say.
So we bumble along until something seismic happens...

 

[fairlie]

Is it naive to suggest that running clean, warm, not too over-crowded trains on time and pricing fares reasonably should do the trick or is there something more?

I think it's the opposite if Cross Country is anything to go by...

 

[jamiearmley]

Is there a political stance to take or some virtue signalling to indulge in which helps at franchise renewal time? Is it naive to suggest that running clean, warm, not too over-crowded trains on time and pricing fares reasonably should do the trick or is there something more?

Brown envelopes, perhaps?

 

[LNW-GW Joint]

Brown envelopes, perhaps?

The civil service doesn't work like that.

 

[12LDA28C]

DB have also left the UK passenger market recently, affecting the ownership of several contracts.

Not yet they haven't. The Arriva sale to I Squared hasn't been completed yet so Chiltern are still a DB company currently, for example Chiltern vacancies are still advertised on the DB website.

 

[YorkRailFan]

Not yet they haven't. The Arriva sale to I Squared hasn't been completed yet so Chiltern are still a DB company currently, for example Chiltern vacancies are still advertised on the DB website.

So are XC and GC, along with Arriva's bus operations.

To be honest when you look at some of the operators, it seems as long as your are not front page news at the time of renewal you can do anything to get away with anything.

In my opinion - niether Avanti or GTR should have had the franchise renewed. Both did. You get many arguements that a new operator would have the same problems (as we can see with Northern and TPE) but Avanti and GTR basically show you that the you can pretty much do what you like and keep your franchise. In the case of GTR Grant Shapps made a lot of noise, then became transport minister and renewed it. GTR still can't deliever their service.

I also think Arriva's contract to operate XC shouldn't have been renewed.

 

[Adrian1980uk]

At the moment it appears to be tread water as there is no clarity on how the process should be in the future or if there is going to be a process. Renewal is based on 'do we need to rock the boat' and answer is no as long as the transport minister is not getting too much hassle

 

[Snow1964]

Since COVID and the on-off (mainly off) saga of Great British Railways everything seems to have gone into limbo state.

The management contracts expire at intervals (and some have already had their optional extensions), but not much evidence of franchise competitions being restarted. If not open to new bidders then default is going to be continuation of same, even if good or bad, or awful.

== Doublepost prevention - post automatically merged: 14 Feb 2024 ==

I think these expire with 18 months, DfT has extension option:
East Anglia 14 Sept 2024 (2 year extension option to 2026)
West Midlands 14 Sept 2024 (2 yr extension option to 2026)
South Eastern 12 Oct 2024 (3 year extension option to 2027)
Chiltern 31 March 2025 (2.8 year extension option to Dec 2027)
Thameslink 31 March 2025 (3 year extension option to 2028)
Western 21 June 2025 (3 year extension option to 2028)

These have already been extended :
South West 24 May 2025 (2 year extension from May 2023)
East Coast 20 June 2025 (2 year extension from June 2023)
C2C 19 July 2025 (2 year extension from July 2023)

 

[YorkRailFan]

Since COVID and the on-off (mainly off) saga of Great British Railways everything seems to have gone into limbo state.

The management contracts expire at intervals (and some have already had their optional extensions), but not much evidence of franchise competitions being restarted. If not open to new bidders then default is going to be continuation of same, even if good or bad, or awful.

== Doublepost prevention - post automatically merged: 14 Feb 2024 ==

I think these expire with 18 months, DfT has extension option:
East Anglia 14 Sept 2024 (2 year extension option to 2026)
West Midlands 14 Sept 2024 (2 yr extension option to 2026)
South Eastern 12 Oct 2024 (3 year extension option to 2027)
Chiltern 31 March 2025 (2.8 year extension option to Dec 2027)
Thameslink 31 March 2025 (3 year extension option to 2028)
Western 21 June 2025 (3 year extension option to 2028)

These have already been extended :
South West 24 May 2025 (2 year extension from May 2023)
East Coast 20 June 2025 (2 year extension from June 2023)
C2C 19 July 2025 (2 year extension from July 2023)

SE is an OLR though. Does that mean that the DFT could put SE up for bidding?