FirstGroup has published two more documents claiming that open access passenger services are value for money and boost economic growth.

First, along with Virgin, is facing a setback to its plans to launch new services after the government sent two letters sounding discouraging notes, although it is still Department for Transport policy to allow open access services where they provide ‘improved connectivity and choice for passengers’.

The first letter was from transport secretary Heidi Alexander, who wrote to the Office of Rail and Road on 6 January this year voicing some reservations about the recent boom in open access applications, saying: ‘There is a balance to be struck to ensure the benefits provided by open access operators outweigh the impacts they have on taxpayers and the ability to operate the network efficiently. We need to be mindful of the impacts of open access such as the level of revenue they can abstract from contracted services and the associated implications for passengers.’

She said her letter did not amount to any change to her formal guidance, but that changes to that guidance were being ‘considered’.

FirstGroup then hosted an event on 20 January at which it highlighted the merits of open access, and also produced a report, but the Department for Transport then wrote to the Office of Rail and Road on 4 February, saying that the Department did not support eight out of the nine applications which have been lodged with the ORR. The only route to get qualified official approval was London to Wrexham, which is being proposed by Alstom.

The DfT is particularly doubtful about a set of proposals from Virgin, which would mean as many as five open access routes from Virgin’s old home at London Euston to places such as Manchester, Rochdale (or Preston), Liverpool, Birmingham and Glasgow. The DfT told the ORR: ‘We do not believe that the quantum of paths sought is feasible or realistic and note that the WCML already operates at close to capacity, particularly into/out of London Euston.’

First, which like other operators is set to lose all its remaining National Rail Contracts under renationalisation plans, points out that open access operators do not receive any financial support from the government, typically operate to places which are not already well-served, and are loyal to their communities and customers.

The latest two studies have been published in the wake of the consultation into the government’s plans for railway reform, which was launched on 18 February.

First has also said that it would buy 14 new Hitachi trains, costing around £500 million, for new open access routes, and that another £460 million could follow.

The first new study is ‘The impact of open access operators on industry revenue and journeys’, compiled by consultants Winder Phillips. Shorter journey times, direct journeys, increased services and fare competition are all cited as key benefits.

The second was compiled by Arup, and is entitled ‘Open access operations paying their way’. It says First’s Lumo will be paying about 10 per cent more in track access charges per train kilometre than LNER, and about 35 per cent more than Avanti West Coast.

‘FirstGroup’s open access managing director Martijn Gilbert said: ‘These studies clearly demonstrate how open access operators are paying their way, generating passenger journeys and revenue. They do it while supporting economic growth for the UK as a whole and the regions they serve.

‘We have a proven track record of finding and reliably operating in gaps in existing timetables, efficiently using spare capacity in the network between services including peak time commuter and freight trains, and which doesn’t increase the fixed costs of the railway or place any additional burden on taxpayers.

‘As the Railways Bill Consultation is issued, it is important that this well-loved part of the railway can continue to operate and grow alongside Great British Railways. With our applications to expand, Lumo and Hull Trains are able to deliver further economic growth quickly, playing an important part in a successful railway for the benefit of all rail users and the communities we serve.’

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