Intercity trains upgrade postponed
By Peter Woodman, PA
The Independent
Friday, 26 February 2010
Plans to replace the ageing fleet of intercity trains have been postponed, Transport Secretary Lord Adonis announced today.
He said the multi-billion pound, 30-year intercity express procurement programme had run into difficulties.
Lord Adonis said he thought it was not appropriate to enter into the contract in the immediate run-up to a general selection and he had ordered an independent assessment of the value for money of the intercity programme.
All being well, there were plans to proceed with the project in the next Parliament "subject to satisfactory resolution of all the contractual issues".
In order to replace Britain's fleet of Intercity 125 trains and to invest in capacity and passenger journey improvements on the East Coast and Great Western main lines, the Government began the Intercity Express Programme procurement in 2007.
Lord Adonis said that good progress had been made, including the announcement of Agility Trains as preferred bidder in February 2009.
He went on: "Over the course of the procurement, however, there has been a reduction in the capacity of the debt market to support the transaction as originally envisaged, and passenger growth has also slowed.
"In addition the Government and Network Rail have committed to electrify the Great Western Main Line from 2016. The Government has identified appropriate adjustments to the original programme to take account of these developments.
"This has inevitably extended the contractual negotiations, which are not yet complete and would not be so until mid-March at the earliest."
Lord Adonis continued: "The negotiations are for a contract of nearly 30 years, a multi-billion pound spend over the course of many Parliaments.
"In all the circumstances, the Government does not believe it would be appropriate to enter into this particular contract in the immediate run up to a general election.
"To ensure that a decision is taken at the beginning of the next Parliament on the basis of the fullest evaluation, I have today asked Sir Andrew Foster, former controller of the Audit Commission, to provide an independent assessment of the value for money of the programme and the credibility and the value for money of any alternatives which meet the programme's objectives."
He added: "It is critical for rail passengers that the right long-term decision is made about the next generation of inter-city trains, which will have a life of 30 years or more.
"The existing rolling stock dates back to the 1970s and needs to be replaced. If Sir Andrew reaffirms that the intercity express programme is better than the alternatives, my intention would be to proceed with the project in the next Parliament, subject to satisfactory resolution of all the contractual issues."
Lord Adonis said Sir Andrew would report within three months.
Agility Trains said: "Since designation as preferred bidder in February 2009, we have been working hard to meet the Government's requirements for the intercity express programme.
"We are disappointed that a contract will not be concluded before the UK general election.
"However, we will continue our ambitious planning for production and maintenance facilities in the UK to support the programme, in anticipation of concluding the contract under the next Parliament."
UK: Intercity trains upgrade postponed
Moderator: John Ashworth
-
John Ashworth
- Site Admin
- Posts: 23606
- Joined: 24 Jan 2007, 14:38
- Location: Nairobi, Kenya
- Contact:
-
John Ashworth
- Site Admin
- Posts: 23606
- Joined: 24 Jan 2007, 14:38
- Location: Nairobi, Kenya
- Contact:
Re: UK: Intercity trains upgrade postponed
Intercity trains upgrade postponed
• £7.5bn contract for 1,400 new carriages will now be subject to independent review
• Conservatives claim that Department for Transport has 'badly let down' passengers
* Dan Milmo
* guardian.co.uk, Friday 26 February 2010 14.22 GMT
A £7.5bn contract to replace Britain's ageing intercity train fleet has been postponed after the government blamed the state of the debt markets and slow growth in passenger numbers for creating uncertainty over the deal.
Rail industry sources claimed that the delay to a deal for 1,400 new carriages was the result of the dire state of the public finances and said it would leave some of Britain's busiest long-distance routes at the mercy of decades-old rolling stock.
Ministers also confirmed that the second phase of a programme to extend trains on the west coast main line will not be carried out, despite an increase in passengers on the London-to-Glasgow route.
The transport secretary, Lord Adonis,today ordered an independent review of the intercity proposals, citing financial market conditions and lower-than-expected passenger growth as the main reasons for the delay.
Adonis added that a decision to electrify the Great Western route by 2016 has changed the requirements of the order, which originally envisaged a mixed fleet of trains that could operate using both electric and diesel power.
"In all the circumstances, the government does not believe it would be appropriate to enter into this particular contract in the immediate run-up to a general election," he said.
Sir Andrew Foster, former controller of the Audit Commission, will conduct the independent review and the government will push ahead with the order if he decides it is still the right strategy, Adonis said.
The fleet of distinctive but increasingly elderly InterCity 125 and InterCity 225 trains, bought by British Rail in the 1970s and 1980s, is a familiar sight on the UK's long-distance lines.
The Conservative party said that the transport secretary had "badly let down" passengers.
Theresa Villiers, shadow transport secretary, said: "The Intercity Express Programme has been blighted by government incompetence at every turn. It was Labour's obsessive micromanagement of our railways that led to Whitehall officials designing trains down to the last bolt, which created huge cost inflation."
The consortium left in limbo by the government announcement, Agility Trains, led by Hitachi, the Japanese manufacturer, said that it was "disappointed" that a formal contract would be delayed beyond the election.
Passenger Focus, the rail user watchdog, urged the next government to pick up the programme as soon as possible.
"Passengers desperately want to see these new trains with more seats and a more comfortable journey in service as quickly as possible," said Anthony Smith, chief executive of Passenger Focus.
The Department for Transport (DfT) also confirmed that it will not carry out the second part of an order for new Pendolino carriages on the west coast main line. The DfT has already backed plans to acquire 106 more carriages for the route, but has now declined an option to buy a further 42.
A DfT spokesman said: "Current passenger demand and projections mean that taking up the option to purchase an extra 42 vehicles would not represent good value for taxpayers' money."
Virgin Trains, which operates the west coast main line franchise, said that it would have pushed ahead with the rest of the order: "We understand that of course the DfT must make decisions based on a number of factors but, from an operator's point of view, we would have no hesitation in adding extra carriages in view of the current and projected growth levels."
• £7.5bn contract for 1,400 new carriages will now be subject to independent review
• Conservatives claim that Department for Transport has 'badly let down' passengers
* Dan Milmo
* guardian.co.uk, Friday 26 February 2010 14.22 GMT
A £7.5bn contract to replace Britain's ageing intercity train fleet has been postponed after the government blamed the state of the debt markets and slow growth in passenger numbers for creating uncertainty over the deal.
Rail industry sources claimed that the delay to a deal for 1,400 new carriages was the result of the dire state of the public finances and said it would leave some of Britain's busiest long-distance routes at the mercy of decades-old rolling stock.
Ministers also confirmed that the second phase of a programme to extend trains on the west coast main line will not be carried out, despite an increase in passengers on the London-to-Glasgow route.
The transport secretary, Lord Adonis,today ordered an independent review of the intercity proposals, citing financial market conditions and lower-than-expected passenger growth as the main reasons for the delay.
Adonis added that a decision to electrify the Great Western route by 2016 has changed the requirements of the order, which originally envisaged a mixed fleet of trains that could operate using both electric and diesel power.
"In all the circumstances, the government does not believe it would be appropriate to enter into this particular contract in the immediate run-up to a general election," he said.
Sir Andrew Foster, former controller of the Audit Commission, will conduct the independent review and the government will push ahead with the order if he decides it is still the right strategy, Adonis said.
The fleet of distinctive but increasingly elderly InterCity 125 and InterCity 225 trains, bought by British Rail in the 1970s and 1980s, is a familiar sight on the UK's long-distance lines.
The Conservative party said that the transport secretary had "badly let down" passengers.
Theresa Villiers, shadow transport secretary, said: "The Intercity Express Programme has been blighted by government incompetence at every turn. It was Labour's obsessive micromanagement of our railways that led to Whitehall officials designing trains down to the last bolt, which created huge cost inflation."
The consortium left in limbo by the government announcement, Agility Trains, led by Hitachi, the Japanese manufacturer, said that it was "disappointed" that a formal contract would be delayed beyond the election.
Passenger Focus, the rail user watchdog, urged the next government to pick up the programme as soon as possible.
"Passengers desperately want to see these new trains with more seats and a more comfortable journey in service as quickly as possible," said Anthony Smith, chief executive of Passenger Focus.
The Department for Transport (DfT) also confirmed that it will not carry out the second part of an order for new Pendolino carriages on the west coast main line. The DfT has already backed plans to acquire 106 more carriages for the route, but has now declined an option to buy a further 42.
A DfT spokesman said: "Current passenger demand and projections mean that taking up the option to purchase an extra 42 vehicles would not represent good value for taxpayers' money."
Virgin Trains, which operates the west coast main line franchise, said that it would have pushed ahead with the rest of the order: "We understand that of course the DfT must make decisions based on a number of factors but, from an operator's point of view, we would have no hesitation in adding extra carriages in view of the current and projected growth levels."
