Competition Commission wants changes in rail franchising policy

The Competition Commission has called for a shake-up of the rail franchising policy of the Department for Transport, following the conclusion of the initial investigation into the train rolling stock leasing market. The initial inquiry has concluded that while there is significant competition between the leasing companies to supply new trains, the market does not work properly with little competition for older trains.

The rolling stock companies are therefore able to demand higher profit margins on the leases for older trains. The Commission rejected the complaint from the Department for Transport that the leasing companies had exploited the situation and colluded to overcharge the train operating companies by up to one hundred and seventy-seven million pounds a year – instead, the Commission stated the rail franchising policies of the Department for Transport, the lack of surplus rolling stock and technical factors which make it difficult to switch trains between different companies were the major contributory factors. The Competition Commission will now discuss suggested remedies with the Department for Transport before issuing final conclusions next year.

Kemble – Swindon redoubling campaign

Gloucestershire County Council has launched a joint campaign with First Great Western and Network Rail to persuade the Office of Rail Regulation to agree that the single-track railway line between Kemble and Swindon should be re-doubled. When the Office of Rail Regulation (ORR) issued the draft determination for spending by Network Rail over the next five-year control period commencing on 1 April 2009, the proposed scheme to redouble the single line between Kemble and Swindon was not supported (Network Rail had requested £32 million for this particular scheme).

Second Stage of Rail Ticket Simplification

The Association of Train Operating Companies (ATOC) have announced that the second stage of rail ticket simplification will be introduced from Sunday 7 September – walk-up fares will be grouped into ‘Anytime’ and ‘Off-Peak’ (where there is more than one off-peak fare, the cheaper fare with more restrictions will be named ‘Super Off-Peak’).

First wins Business in Community Award

A learning scheme for First employees which has awarded more than eight thousand vocational qualifications and a further eight thousand non-vocational awards since its inception five years ago, has won the Big Tick Award from ‘Business in the Community’ for the second consecutive year. First has opened learning centres across South West England, in association with the trade union Unite – the centres, which are manned by project workers and union learning representatives, provide access for staff to vocational and non-vocational courses at times to suit them.

Transdev profits fall

Transdev, the French company, which owns Dorset bus operator, Yellow Buses, has announced a fall in operating profit to £12.49M for the year ended 31 December 2007 (£13.96M for 2006) – although revenue increased by 11.1 per cent, operating costs rose by 13 per cent due to substantial additional expenditure on wages, salaries and pensions.

Yellow Buses has announced that the company will be increasing fares on bus services in Bournemouth, Christchurch and Poole from Sunday 7 September – child fares will not be increased, which will benefit young people aged sixteen and seventeen who hold a CitizenCard. Wilts and Dorset, a major competitor of Yellow Buses, increased bus fares from last Saturday (16 August).

And finally,

Four vintage railway posters advertising Cornwall as a holiday destination are expected to sell for more than six thousand pounds in an auction at Christies next month.