Only two in race for DfT Pendolino contract
Transit 336, May 9, 2008
The Department for Transport's plan to employ a 'shadow operator' to bring new Pendolino trains into service on the West Coast Main Line has attracted minimal interest.
The shortlist to bid for the contract contains just two bidders - Govia and incumbent operator Virgin - whereas the DfT had said the shortlist would be up to five-strong. It is understood that when lack of interest in the contract became apparent, the DfT contacted established UK train operators and potential new entrants in an attempt to encourage applications, but failed to generate any.
Lack of clarity over the level of risk the shadow operator will bear, and the complexity of the project were among the reasons major transport groups declined to take part in the competition. A statement from one of the
shortlisted bidders, Govia, reflected these concerns.
"We are pleased to be invited to bid for the contract although we are a bit surprised only one other party has been shortlisted," a spokeswoman told Transit. "We thought it would have been a wider competition. Because of that we now need to understand the nature of the contract."
Govia will now compete with Virgin to oversee a West Coast fleet expansion programme involving bringing four new nine-car sets into service from 2010 and lengthening them to 11-car in 2011. This will pave the way for a further 31 of the existing 52 Pendolinos sets to be lengthened to 11-car early in the next West Coast franchise which starts in 2012.
The plan to launch a competition for a shadow operator to bring new rolling stock into service was hatched by the DfT after it failed to agree terms for the project during negotiations with Virgin. The shadow TOC's main tasks will include testing the new trains and ensuring they meet safety requirements to enter service, helping the DfT understand the risk of lengthening trains to 11-car so that it can give bidders for the next West Coast franchise a clear understanding of issues involved, and ensuring enhanced depot and extended platforms are adequate for 11-car operation.
At the same time as announcing the shortlist for the 'shadow operator', the DfT said that it had struck an agreement with Alstom to begin production of the new rolling stock, worth £255m, and provide a new 10-year £1.25bn maintenance agreement for the Pendolino fleet from 2012. A notice to proceed has been issued with a firm contract due to be signed in August.