FirstGroup has said it will not take up the option to extend its First Great Western franchise for three years beyond 2013 so it can bid for a longer-term deal.
The Group intends to ‘bid for new long-term Greater Western franchise reflecting significant Government investment in region.’
We reported in March that the Group were planning on ending the franchise early due to a ‘unique break clause’ in the franchise contract that allows it to end in 2013 instead of 2016.
FirstGroup’s Chief Executive Tim O’Toole said:
“We have made the commercial decision not to take up the option to extend the First Great Western franchise for a further three years beyond the initial franchise term to 2013.
“The Government has announced franchise reform and major investment in the region including the redevelopment of Reading station, resignalling and electrification of the Great Western Main Line, the Intercity Express Programme and Crossrail.
“With our unique knowledge of the franchise we believe we are best placed to manage these projects and capture the benefits through a longer-term franchise. We will continue to operate First Great Western until March 2013 and will meet all of our obligations under the Franchise Agreement.
“We are focused on retaining our leadership position in UK Rail and will continue to leverage our unrivalled expertise and experience. We were pleased to pre-qualify for the InterCity West Coast franchise and we are discussing a proposal to extend our First TransPennine Express franchise with the DfT.”
In my opinion the GWR franchise should be taken back into public ownership in 2013, and a new franchise not tendered or completed until all the up-grade work on the GWR is complete.
We’ve seen from the WCML upgrade and the ECML debacle, that TOCs have their snouts in the public trough and scam every penny possible.