Rail franchise decision kicked down the track
London Midland has been given a short extension of its rail franchise for a second time, providing more time for the Government to make a decision about who will run the routes in the future.
A new franchise agreement was due to come into force in October after a long tender process but this has now been delayed.
London Midland, which is a joint venture between Keolis and Go-Ahead Group, was first awarded the contract in 2007. It was extended 15 months ago, and due to run until October, but has now extended again to “at least December 2017” and possibly until February 2018.
London Midland’s managing director, Patrick Verwer, said: “This announcement means we can continue to build on the successes of the last five years that have made this an international award winning franchise.
“During the months ahead we will continue to work with the DfT and all our stakeholders to ensure a smooth transition for the awarding of the new, long-term, franchise.”
In April 2016 three companies were shortlisted to take over the West Midlands rail franchise
Current operator London Midland was joined on the shortlist by MTR Corporation and West Midlands Trains, a subsidiary of Abellio Transport Group with Japan Railways East and Mitsui Corporation as minority partners.
The successful bidder had been expected to be named in June 2017 before it took over the franchise in October 2017.
The current franchise covers routes and stations spanning the Midlands, South East and the North West. It includes routes from London Euston which take in Birmingham New Street and Crewe, longer-distance routes which link Birmingham New Street with Liverpool Lime Street, Hereford and Shrewsbury, as well as local services in the West Midlands.
