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DB to buy Grand Central

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43067

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Arriva acquires open access operator Grand Central Railway
Arriva PLC has acquired UK open access operator Grand Central Railway. See press release from Arriva below and comment from Tom Clift, Managing Director, Grand Central Railway:

"Today opens a brand new chapter for Grand Central and for open access operations on Britain’s railways.

“The decision by Arriva, one of Europe’s largest transport undertakings, to acquire Grand Central is a huge vote of confidence in all our staff who have worked so hard over the last four years to deliver the very highest standards of customer service to the growing numbers of passengers using our routes.

“I will continue to lead Grand Central and will report directly into Bob Holland, MD of Arriva’s UK Trains division. Meanwhile Grand Central will remain a self-contained business with its own unique brand and identity. Our headquarters will continue to be based in York.”

Statement from Arriva PLC
Arriva plc has confirmed it has acquired UK open access operator Grand Central Railway which runs passenger train services between Sunderland and London, and between Bradford/Halifax and London.

The acquisition, for an undisclosed amount, adds to Arriva’s UK Trains portfolio of the CrossCountry, Arriva Trains Wales and Chiltern Railways franchises, and concessions to operate the Tyne and Wear Metro and (as a joint venture) London Overground operations.

Grand Central is an open access operator, it does not receive subsidy from, or pay any premium to the Department for Transport. It operates four direct services between Sunderland and London Kings Cross daily, and three direct services between Bradford/Halifax and London Kings Cross. It provides approximately 700,000 passenger journeys a year.

Bob Holland, Arriva UK Trains managing director, said: “We firmly believe open access will play a valuable part of a balanced portfolio for our UK Trains division alongside our three franchises and concessions operated on London Overground and the Tyne and Wear Metro.

“Bringing Grand Central on board means we have a live open access operation up and running, one which is popular with customers and which we believe we can develop to become a key commercial part of our UK rail operations.”

www.arriva.co.uk/arriva/en/media_centre/press_releases/2011/2011-11-04/
 
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northwichcat

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Don't Arriva part own Alliance Rail? Will they be happy with Alliance and GC putting in rival open access bids for the same service?
 

kylemore

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Good news - Viel Gluck!
Tyneside/Yorkshire to Koeln/Frankfurt am Main anyone?!
I know unlikely but there may be some good deals on through fares once the DB ICE services start from St. Pancras.
 

AlterEgo

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You assume GC will still be operating then. Let's hope they don't go the way of WSMR.
 

AlterEgo

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Yes you might be right but then why are they going to the bother of buying it?

Because they thought it'd be profitable, just like they thought with WSMR. However GC has a much stronger business case than WSMR ever did. There still is quite a risk that GC could suffer financially though. For €20m or whatever it was though, it's worth a punt.
 

ainsworth74

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You assume GC will still be operating then. Let's hope they don't go the way of WSMR.

I think GC will be still be operating for some time to come as unlike WSMR they actually have a route that is making money. Whether they will still be running two routes once DB start serving St Pancras is an interesting question.
 

kylemore

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Because they thought it'd be profitable, just like they thought with WSMR. However GC has a much stronger business case than WSMR ever did. There still is quite a risk that GC could suffer financially though. For €20m or whatever it was though, it's worth a punt.
You're right in the big scheme of things £20m isn't a lot.
Well I'am sure we all wish them well, what do you think of the possible links to parent DB's new ICE services from London?
 

jon0844

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Don't Arriva part own Alliance Rail? Will they be happy with Alliance and GC putting in rival open access bids for the same service?

Look at all the competing brands on the high street that are part of the same parent company. I'd say it's a win win situation if you're financially involved with lots of rival companies - you're going to win every time!
 

northwichcat

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GC have apparently wanted to order new Polaris trains for a while but funding has caused an issue. Will the Arriva takeover change this?
 

AlterEgo

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What's your source on that, or is it just an opinion?

Are you suggesting DB bought WSMR to tun it into the ground?

Why else would a company want to acquire another business unless they thought it'd be profitable? You don't buy things because they're a heap of...
 

northwichcat

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Are you suggesting DB bought WSMR to tun it into the ground?

Why else would a company want to acquire another business unless they thought it'd be profitable? You don't buy things because they're a heap of...

Didn't DB own a stake in WSMR before they'd even run a service?
 

Pumbaa

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Are you suggesting DB bought WSMR to tun it into the ground?

Why else would a company want to acquire another business unless they thought it'd be profitable? Y

Asset stripping, which you could insinuate DB has done with WSMR, launching the Chiltern flagship service with WSMRs assets. It makes good business sense. It is sometimes in the business' best interest not to have competition but rather full market capture, ie in this case just Chiltern will make them more money than Chiltern and WSMR.
 

AlterEgo

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Asset stripping, which you could insinuate DB has done with WSMR, launching the Chiltern flagship service with WSMRs assets. It makes good business sense. It is sometimes in the business' best interest not to have competition but rather full market capture, ie in this case just Chiltern will make them more money than Chiltern and WSMR.

I'm glad someone else said that and not me... :lol:
 

route:oxford

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So will this be the tipping point where it becomes worthwhile for the German Government/DB Railways to invest in passenger stock to lease to their UK subsidiaries?
 

The Planner

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Don't Arriva part own Alliance Rail? Will they be happy with Alliance and GC putting in rival open access bids for the same service?

The cyncial amongst us could say Alliance and GC merge and they suddenly obtain the paths Mr Yeowart wants...
 

Eagle

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Did DB buy WSMR?

Or was it more a case of "DB bought Chiltern which meant inheriting Chiltern's non-core Wrexham service"?

You mean Laing Rail, not Chiltern.

DB bought Laing Rail, who owned Chiltern and had a majority stake in WSMR (and a minority stake in LOROL). They then renamed it DB Regio UK, despite it being legally unconnected to the Germany-based DB Regio AG.

It's fairly obvious that what they were interested in was Chiltern. WSMR was just a hanger-on.

Later of course, DB bought Arriva Rail, and merged DB Regio UK into it.
 

northwichcat

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You mean Laing Rail, not Chiltern.

DB bought Laing Rail, who owned Chiltern and had a majority stake in WSMR (and a minority stake in LOROL).

Which happened in January 2008 and W&S started operating in April 2008 after the takeover (although obviously plans existed for W&S before the takeover.)
 

tbtc

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You mean Laing Rail, not Chiltern.

DB bought Laing Rail, who owned Chiltern and had a majority stake in WSMR (and a minority stake in LOROL). They then renamed it DB Regio UK, despite it being legally unconnected to the Germany-based DB Regio AG.

It's fairly obvious that what they were interested in was Chiltern. WSMR was just a hanger-on.

Later of course, DB bought Arriva Rail, and merged DB Regio UK into it.

Sorry, Laing, yes.

But, regardless, DB never purchased WSMR as an individual company - they inherited (a majority of) it as a loss making subsidiary of a bigger business that they were buying.

There's therefore no indication that they ever had any plan for what to do with WSMR.

However, buying Grand Central suggests that they do have plans for that stock/ routes.

Personally, I can't see what the benefit of buying these is (when there are no fixed assets, merely leases on stock/ paths, and DB could easily bid for these in a few years time anyway).

The only thing I can think of (that hasn't been mentioned on this thread) is that it'd tie in nicely with a purchase of Hull Trains from First - worth a punt?
 

Eagle

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But, regardless, DB never purchased WSMR as an individual company - they inherited (a majority of) it as a loss making subsidiary of a bigger business that they were buying.

Technically WSMR wasn't loss-making at the time of DB's purchase, seeing as it hadn't started trading yet! :p
 

anthony263

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What's this going to mean for rolling stock? Will we see the end of HSTs? Will we see 67s on push pulls?

Doubt It, then again perhaps if they get the go ahead for Blackpool - London Euston service although I think it is more likely that they would buy new rolling stock perhaps those Polaris trains from csre.
 

brompton rail

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Why would 67s replace HSTs? All East Coast paths demand 125 mph stock. The good thing is that when East Coast franchise is let Arriva can't get it because of competitions issues! Hopefully!!
 

robertclark125

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Why would 67s replace HSTs? All East Coast paths demand 125 mph stock. The good thing is that when East Coast franchise is let Arriva can't get it because of competitions issues! Hopefully!!

Don't be too sure on that. The competition commission, or firstly the OFT, may think that a combined operation benefits the customer.

Having said that, it does put Arriva in a strong position, to offer interchange from cross country to GC, such as Newcastle to London via York.
 
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