National Express stripped of East Anglia franchise

BIRMINGHAM based transport group National Express has suffered a major blow after the Department for Transport stripped it of its East Anglia rail franchise.

The company had only said in its annual results statement last month that one of its main goals for its rail operation was to secure the extension of the franchise beyond February 2012.

National Express has struggled to overcome the fall-out from the East Coast Mainline fiasco when it was forced to hand back the operation of the route to the Government due to financial difficulties and this may have played a part in the Government’s decision.

It had already told the company that the franchise deal would end two years earlier than originally planned.

National Express, which will continue to operate the c2c franchise until May 2013, had bid to carry on running the East Anglia route but it failed to make a three-strong shortlist announced by the DfT.

The three companies in the running are: Nederlandse Spoorwegen and National Express rivals Go-Ahead Group and Stagecoach.

A spokesman for National Express said the firm was disappointed with the decision.

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The Dft has also announced the shortlist for the West Coast franchise which shows current operator, Virgin Trains, faces a stiff fight to retain the service.

The company will vie with Aberdeen-based FirstGroup, which operates the TransPennine Express; Dutch firm Abellio; and an alliance of French transport companies Keolis and SNCF for the franchise – which links Birmingham New Street with Euston.

The route, which Virgin has operated since 1997, is up for grabs from April 2012.

A consultation on the bid will close next month followed by an invitation to tender in May and a final decision expected in December.

The franchise runs until 2026, with an option to extend for another year.