UK: 'Re-nationalised' rail company boosts profits

[John Ashworth]

East Coast rail firm Directly Operated Railways boosts profits

ALAN JONES THURSDAY 27 SEPTEMBER 2012 Independent

A railway company which was temporarily re-nationalised by the Government three years ago reported increased profits and an improvement in passenger satisfaction today.

Directly Operated Railways (DOR), which took over the running of the East Coast line from National Express, said its operating profit increased by 7% in the year to March to £7.1 million.

Turnover for the year amounted to £665.8 million, an increase of £20 million, leaving a profit before tax and service payments to the Department for Transport of £195.7 million, an increase of £13 million.

Passenger journeys at East Coast, which runs trains from London to Yorkshire, the North East and Scotland, increased by 2.1%, while customer satisfaction at East Coast rose by 2%, and the latest punctuality figures were its best since records began in 1999.

DOR chairman Doug Sutherland said: "During the year, we made further very good progress with the business turnaround of East Coast, and continued to invest in our infrastructure assets, our people, and the delivery of significant improvements in customer service.

"Our assets have been worked harder, and a solid financial performance has been achieved in a challenging economic environment.

"The major challenge in May 2011 was the introduction of a comprehensive timetable change across the entire East Coast network.

"Despite being the biggest change on the East Coast Main Line in 20 years - and 10 years in the making by the industry - the new timetable was introduced seamlessly by East Coast. I want to thank everyone who helped to make that possible."

DOR said it anticipated that the franchise will transfer to a new private operator around the end of 2013.

[John Ashworth]

East Coast rail line could stay public, says Labour

by William Green, The Journal Sep 29 2012

A LABOUR Government would consider keeping East Coast rail services in public hands, said party leader Ed Miliband.

Mr Miliband said Labour would “look openly” at the future of Britain’s railways as he spoke of passengers’ “resentment” at rail companies profiting while fares rocketed.

His comments come as the coalition Government presses ahead with plans to return the East Coast franchise covering services linking the North East with London and Scotland to the private sector.

The franchise is currently in public hands after two previous private operators hit financial problems. But the Department for Transport wants it run again by a private company from December next year.

“We are open to all solutions on this,” said Mr Miliband. “And I think the really important thing in this is not to be dogmatic, to say it must be private sector or it must be public sector. Let’s look at what’s going to work for the railways.”

He said Labour Shadow Transport Secretary Maria Eagle was “completely right” about having to look at all the options. “We have got to look at the cost implications, of course.

“But I think there is a deep sense of resentment that people think: ‘Well, the privatised rail companies are making hundreds of millions of pounds of profit. And then season tickets or prices are going up by as much as 10% a year’.”...