Serco awarded interim Northen Rail franchise agmt
Serco awarded interim Northern Rail franchise agreement
27 March 2014
Serco Group plc, the international service company, together with its 50:50 joint venture partner AbelIio, has signed a 22-month interim franchise agreement to continue operating the Northern Rail franchise on behalf of the UK Department for Transport (DfT) until February 2016. Serco's share of total revenue from operating the service over the 22-month franchise is estimated at £520m.
The deal has been co-signed by all five North of England Passenger Transport Executives (PTEs) and will see Northern Rail Ltd continue to operate local and regional rail services across the north of England. Northern Rail is also working with the DfT to secure the introduction of electric trains to the newly electrified rail routes in the north.
Serco and Abellio have achieved significant performance improvements since the franchise began in December 2004, as well as investing around £30m into the railway. For example, punctuality has risen from 84% to 90% and fleet reliability has doubled, while annual passenger numbers have increased by 47% from 63 million to 94 million each year. In the latest Public Performance Measure (moving annual average) for UK railways, Northern Rail scored 90.9%, above the national average. The new interim franchise agreement, which is anticipated to be run at a lower profit margin than the existing franchise, includes a gain share agreement to incentivise driving continued performance improvements.
David Stretch, Serco's Managing Director for Transport Services, said: "Serco has a strong track record of providing high quality rail services in the UK and internationally. We are delighted that the strong performance of our partnership with Abellio, and focus on doing the right thing for our passengers, has been recognised with the award of this new contract. This is down to the commitment of our team at Northern Rail who work tirelessly to provide an excellent standard of service across the north of England. We look forward to continuing to work alongside Abellio, the PTEs and other regional stakeholders to help drive improvements and greater efficiencies - benefiting both our fare-paying passengers and the taxpayer."
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226
About Serco
Serco is an international service company, which combines commercial know-how with a deep public service ethos.
Around the world, we improve essential services by managing people, processes, technology and assets more effectively. We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public.
Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence. Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors.
More information can be found at www.serco.com
This information is provided by RNS
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