Growth and Opportunity TransPennine Express Prospectus June 2014 TransPennine Express Prospectus June 2014 Contents The Department for Transport has actively considered the needs of blind and partially sighted people in accessing this document. The text will be made available in full on the Department’s website. The text may be freely downloaded and translated by individuals or organisations for conversion into other accessible formats. If you have other needs in this regard please contact the Department. Foreword 06 1. Introduction 07 Rail Executive 1.1 Welcome to the TransPennine Express Franchise 07 Department for Transport 1.2 The purpose of this document 09 Great Minster House 1.3 A view from passengers 13 33 Horseferry Road 1.4 Our vision and objectives for TransPennine Express 15 London SW1P 4DR Part A 21 Telephone 0300 330 3000 2. At a glance 22 Website www.gov.uk/dft 2.1 The TransPennine Express Franchise - the existing business 22 Email enquiries: [email protected] 2.2 Franchise specification 23 3. Background and context 25 © Crown copyright 2014 3.1 The British passenger rail market 25 Copyright in the typographical arrangement rests with the Crown. 3.2 Structure of the British rail industry 27 You may re-use this information (not including logos or third-party material) free of charge in any format or medium, under the terms of the Open Government Licence. 3.3 Devolution in England 30 3.4 Key events 31 To view this licence, visit Part B 37 http://www.nationalarchives.gov.uk/doc/open-government-licence/version/2 4. The existing franchise 38 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, 4.1 Overview 38 or e-mail: [email protected]. 4.2 Routes and services 39 Photo credits: 4.3 Recent changes 40 Front cover and photographs throughout: © Bob Martin/DfT 4.4 Financial information 41 4.5 The TPE market 46 4.6 Customer satisfaction 47 4.7 Service delivery 49 4.8 Fleet and engineering 50 4.9 Stations 53 4.10 Operations 54 4.11 Community Rail 55 3 4 TransPennine Express Prospectus TransPennine Express Prospectus Part C 57 Foreword 5. Franchise requirements 58 5.1. Franchise objectives 59 5.2 Geographical area 59 This Government is committed to improving the transport system in the north 5.3 Service quality 61 of England to support economic growth and to benefit communities across 5.4 Partnerships 65 the region. 5.5 Operations 69 Nationally and locally there have been great improvements in the railways since 5.6 Stations 79 privatisation. We have seen record growth in passenger numbers, achieved much higher levels of passenger satisfaction and one of the best safety records 5.7 Fares and ticketing 83 in Europe. We want to continue to build on this and to deliver excellent railway 5.8 Improving efficiency 85 services for passengers with better value for money for both passengers and taxpayers. And in line with our objectives for localisation we want to take this 5.9 Sustainability 88 forward in partnership with Rail North, a new body bringing together the local 5.10 Innovation 89 transport authorities across the whole of the north of England. The next TransPennine Express franchise is crucial to our strategy. This Prospectus 6. Commercial structure 91 sets out the franchise opportunity. It describes the business as it stands today 6.1 Franchise length 91 - a business which has improved significantly over the last ten years under the current operator - but which now has the opportunity for further development. 6.2 Capital requirements 91 We want to see a revitalised railway; one which delivers an enhanced franchise, 6.3 Maintenance of liquidity ratios 92 with faster journeys and improved customer service at a price that is attractive 6.4 Revenue risk 92 to passengers and to the taxpayer. We need a delivery partner who will develop services that capitalise on the massive investment taking place, including the 6.5 Profit share 92 Northern Hub and the major Northwest and TransPennine electrification schemes. Part D 93 We need a delivery partner with vision, a long term plan and the best people to deliver it. Above all, we need a delivery partner who will put passengers at the 7. The Bid process 94 heart of the business. 7.1 Background 94 We want to encourage ambition. We are making record levels of investment in 7.2 Procurement approach 95 the region’s rail infrastructure, and we are looking for bidders to bring forward 7.3 The procurement timeline 95 innovative plans, including investment of their own or in collaboration with others, to maximise the benefits this will deliver. We want to be able to offer faster journeys 7.4 The procurement process 96 to more people in greater comfort, helping to deliver better connectivity across the north of England and Scotland. 8. Evaluation process 100 We are confident that our developing partnership with Rail North will help to bring 8.1 Delivery plans 100 a stronger local focus to the franchise and that, combined with the skills, investment and innovation brought by the successful bidder, we can offer an 8.2 Financial deliverability 100 intercity franchise for the north of England. One that meets my three objectives for 8.3 Quality of bids 100 franchising across the network: that the passenger gains; the industry thrives and the taxpayer benefits. 8.4 Contracting committed obligations 100 Glossary 101 Important Notice 103 Rt. Hon. Patrick McLoughlin MP Secretary of State for Transport 5 6 TransPennine Express Prospectus TransPennine Express Prospectus Welcome 1. Introduction 1.1 Welcome to the TransPennine Express Franchise Since privatisation in 1995, private sector operators have helped to drive huge improvements in the UK’s railway, leading to a doubling of passenger numbers and distances travelled, far greater levels of passenger satisfaction, a strong safety record and increased revenues. The TransPennine Express (TPE) franchise plays an important part in the franchised railway network and represents an exciting opportunity for prospective franchise operators. The investment underway in the rail network in the north of England provides the potential for considerable development during the next franchise and a transformation of rail services for passengers. TPE is one of the smaller franchises in the UK. It provides inter-urban rail services across the north of England, complementing the commuter, local and long-distance services operated by the Northern franchise. TPE services provide direct connections between the major cities of Liverpool, Manchester, Leeds, Sheffield and Newcastle and to other cities and towns in the North. TPE also provides important cross-border services between north west England and Scotland. TPE’s inter-urban rail services are important to the economic vitality of the North, in providing for longer distance business and leisure travel and handling substantial commuter flows. Since 2004, passenger services have been provided by a joint venture between First Group and Keolis. Over this period, there has been significant and continuous “TPE’s inter-urban rail services are growth in passenger demand and the level of financial support required has reduced. The Department for Transport’s Rail Executive (hereafter referred to important to the economic vitality of the as ‘Rail Executive’ or ‘the Department’) is now seeking to let a new franchise to commence in February 2016. The new franchise offers opportunities to North, in providing for longer distance deliver significantly improved passenger rail services on the TPE network, taking business and leisure travel and handling advantage of the major planned improvements to the railway infrastructure in the north of England. substantial commuter flows.” 7 8 TransPennine Express Prospectus TransPennine Express Prospectus 1.2 Purpose of this document This Prospectus has been produced to give information to potential bidders about the TransPennine Express passenger rail franchise and Rail Executive’s current emerging approach towards its future shape. Following the recommendations of the Brown Review of the Rail Franchising Programme1, Rail Executive is seeking to provide a greater level of information to bidders at the start of the competition for the next franchise. Publication of this Prospectus alongside the OJEU2 Notice forms part of this new approach. PART This Prospectus is being published alongside the formal documentation initiating the pre-qualification process for selecting suitable organisations to receive an Invitation to Tender (ITT) for the TPE franchise. Around the same time, a separate document is being issued to a wider audience to start the public consultation on A the franchise. includes some market context and A franchise competition for the Northern information about the rail industry in franchise is taking place in parallel with the Great Britain, information about the TPE competition, and is the subject of a separate proposals for devolution and details of Prospectus. Together, we are seeking to deliver some key events and projects which will approaches for these franchises which deliver impact the TPE franchise improvements for passengers across the north of England. In line with UK Government procurement principles, the competition for the TransPennine Express rail franchise includes significant market engagement, where potential bidders are invited to help Rail Executive test its thinking and generate ideas for innovation for consideration by Rail Executive. Our aim in this PART Prospectus is to set out Rail Executive’s current intent with regard to this franchise and to provide relevant information to the market. However, our thinking and final position on a number of areas within the scope of this procurement and franchise specification are still being developed and, in many cases, subject to public consultation. As such, the information in this document should not be relied upon B as an indication of Rail Executive’s final requirements for the TPE franchise; indeed we will continue to welcome feedback on our proposed approach where this is still gives information about the existing under review.