Posted 30th October 2017 | 2 Comments
Arriva makes surprise exit from Welsh competition
ARRIVA has decided to withdraw from the competition to run the next Wales & Borders franchise.
Arriva Trains Wales managing director Tom Joyner has confirmed the move. He said: “We have been notified that Arriva Group have withdrawn from the bidding process for the next Wales and Borders franchise.
“Our key priority following this announcement is to continue to focus on the delivery of our services for the people and communities that depend on us for the remainder of the current franchise, including a £1 million Arriva Trains Wales investment in additional trains which will be introduced in 2018.
“We will continue to work closely with our government and industry partners to support them with the delivery of their priorities.”
Arriva had been one of four shortlisted bidders. The others are Abellio Rail Cymru, KeolisAmey and MTR Corporation (Cymru) Ltd.
The award of this franchise is being devolved to the Welsh Government, which intends to follow a ‘not for profit’ model and had said that the winner was set to be announced in December this year.
The Welsh Government said: “It is not uncommon for bidders for major projects to withdraw during the tender process and Arriva have been clear they have done this for their own commercial reasons.
“The procurement process is a tough and demanding one and we recognise Arriva's extensive work to date.
“With final tenders due later this year, we have three companies with world-class credentials each putting their own, distinct cases for how they will deliver the ambitious objectives we set, with the goal of delivering a step change in rail services for passengers across Wales and the Borders.”
The RMT, however, said the revelation exposed ‘the whole flaky and opportunist nature of the rail franchising process’. A spokesman for the union added: “They appear to have pulled out because they can't make enough money, which is extraordinary.
“This news presents a golden opportunity for the Welsh to take back control of their railways through public ownership and that opportunity should be seized with both hands.”
The leader of the opposition in the Welsh assembly, Conservative AM Andrew RT Davies, said he would now be pressing the Welsh Government to reveal ‘the exact date as to when Transport for Wales were first informed of Arriva's withdrawal’.
He continued: “The timing of the Cabinet Secretary's announcement falls on a suspiciously auspicious period for the Welsh Government, who have developed a habit for burying bad news during recess.”
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Tim, Plymouth
What on earth does 'not for profit' mean?
Why would anyone bid?
Or is it a fixed managemend fee/profit ?
Christopher Jones-Bridger, Buckley Flintshire
As the incumbent questions will certainly asked why walk away from bidding for the next franchise while already having the operational & commercial experience of running the current franchise. It is easy to suspect that it is not worth the risk and offers no financial gain to Arriva's parent DB.
Then again the existing Wales & Boarders franchise does expose so many weaknesses of the franchise process. A tightly specified contract lacking flexibility to adapt to growth and change has meant that customers have been faced with a less than ideal rail service. Changes that have happened during the franchise, such as the improved Cambrian main line service, have been time consuming, hard won & costly additions to the original specification.
Let us hope that when the replacement franchise is let that promised and increasingly delayed improvements such as Valley's electrification, in what ever form, and improved North Wales links taking advantage of the Halton chord & Chester to Wrexham partial redoubling can be implemented.
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