A WEST Midland business transport group is seeking urgent talks with rail companies following the Government’s announcement that it will not extend Virgin Trains’ West Coast Main Line franchise for a further two years.
The West Midlands Business Transport Group (WMBTG), which represents the interests of various business organisations in the region, said clarification was needed on the future of this vital transport link.
The current franchise expires in March 2012 and Martin Dyer, who chairs the WMBTG, said: “Whilst this is bad news for Virgin, we encourage them and other train operators to sit down with the business community.
“We want to engage with prospective franchisees to highlight the needs of the area.”
The Government’s decision not to extend the contract is a blow to Virgin Trains and is likely to lead to a bidding war to operate the lucrative service, which runs between London and Glasgow.
It is likely that Virgin will bid again but other operators such as First Group are also thought to be interested in acquiring the contract.
Whether Birmingham-based National Express will bid is unclear. It handed back its contract for the East Coast franchise because it could not make the service profitable. However, it has recently won an extension for its East Anglia franchise.
The Government rejected the contract extension because it wants to overhaul the current franchising system. The results of the revision are expected in the next few months but one measure thought likely to be introduced is 15-year contract terms to make investment more attractive for operators.
Jerry Blackett, chief executive of Birmingham Chamber Group and former WMBTG chair, said the service had a big impact on the health of the region’s economy and potential franchisees had to consult with the business community.
He said: “Based on discussions with prospective franchisees, Birmingham Chamber Group will provide a view to the Department for Transport on the alignment of the potential franchisee with the perceived needs of business.
“Services from London to the West Midlands have not enjoyed the recent journey time reductions that have been experienced on routes between London, Liverpool, Manchester and Preston. West Midlands business is concerned that this has created a competitive disadvantage and we will be making this point to prospective franchisees.”
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