Consortia poised to take stations

Exclusive by Carol Millett



Rail stations may be taken out of Railtrack's control and given to private consortia in order to speed up improvement work.

Contract Journal has learned that talks are underway between the regulator and the rail industry about transferring station buildings to consortia set up by train operating companies (TOCs). The stations would be leased over a 15- to 30-year period from Railtrack. Consortia led by train operators would also be able to bid to construct new stations within the TOC's franchise areas.

The move is seen as a reaction to frustration with Railtrack's investment in general, and fears that complex arrangements for managing stations are holding back improvements. It would create a massive expansion in privately financed station construction, development and refurbishment.

Train operators are already bidding for the right to finance, operate and develop stations within their own franchises.

A source close to Connex told CJ: "Connex has included a special purpose vehicle in its bid for the renewal of its south central franchise. The SPV (special project vehicle) would look to run existing stations as well as set up a new link on Connex's Oxted line, running from Uckfield to Lewes. They are proposing to finance and project manage around £1.5bn of rolling stock, track and station improvements."

A recent report for the rail regulator, carried out by Lambert Smith Hampton in joint venture with Hollingworth Bissell and Scholfield Rail, strengthened the case for train operators taking over station development and operation. It concluded that the present arrangements are so complex that they hamper any significant improvement and development of the network stations.

In response, rail regulator Tom Winsor commented: "Stations provide the passengers first point of contact with the railway. They are key to general perceptions and the realities of the quality of passenger rail service. The existing arrangements for operating , maintaining and renewing stations are more complex than for Railtrack's network assets.

"The demands for such arrangements are also different. I am therefore overhauling these arrangements to ensure they meet the current and future needs of the railway industry, in particular those associated with franchise replacement and other significant investment programmes."

A rail contractor said: "The government is frustrated at Railtrack's apparent lack of investment in the rail network. SPV's are a way of taking some of the network off Railtrack and forcing the improvements at a greater pace. Stations will be at the forefront of this because of their potential to attract or repel the travelling public and because of their revenue potential."

l Fears over West Coast Main Line, page 2.