Operator of last resort
An operator of last resort is a business in the United Kingdom that operates a railway franchise if a train operating company is no longer able to do so.
Purpose[]
Under the Railways Act 1993, which privatised passenger operations in the United Kingdom, the government is required to maintain continuity of passenger rail services if a franchise is terminated. In some instances, the government has been able to negotiate for the existing franchisee to continue to operate the franchise on a management contract until it can be relet, as happened when GNER defaulted on the InterCity East Coast franchise in 2007.[1]
Should this not be possible, the Department for Transport (DfT) through DfT OLR Holdings (or the Scottish Parliament for the ScotRail franchise in Scotland, and the Senedd for the Wales & Borders franchise in Wales) is required to step in as the operator of last resort.
Structure[]
In July 2009, the DfT established Directly Operated Railways (DOR) as its operator of last resort.[2] In November 2015, the DfT wound up DOR and appointed a partnership of Arup Group, Ernst & Young and SNC-Lavalin Rail & Transit.[3]
Utilisation[]
Since privatisation in the mid-1990s there have been six occasions when an operator of last resort has been required to step in, with another planned for 2022.
Current[]
- London North Eastern Railway has operated the InterCity East Coast franchise since 2018, after Virgin Trains East Coast defaulted.[4]
- Northern Trains has operated the Northern franchise since 1 March 2020, after the Arriva Rail North franchise was terminated by the Department for Transport.[5]
- Transport for Wales Rail has been the Welsh Government's operator of last resort since 7 February 2021, after the Wales & Borders franchise operated by KeolisAmey Wales became unviable as a result of the COVID-19 pandemic.[6]
- SE Trains has operated the South Eastern franchise since 17 October 2021, after the previous Govia-owned operator Southeastern (legally London & South Eastern Railway) was stripped of the franchise for not declaring £25 million of revenue.[7] The new operator has continued to use the Southeastern brand.
Past[]
- South Eastern Trains operated the South Eastern franchise from 2003 until 2006, after the Connex South Eastern franchise was terminated by the Strategic Rail Authority.[8]
- East Coast operated the InterCity East Coast franchise from 2009 until 2015, after National Express East Coast defaulted.[9]
Future[]
- From April 2022, ScotRail Trains controlled by Transport Scotland will take over the ScotRail franchise from Abellio ScotRail.[10]
References[]
- ^ "East Coast to be re-franchised". Railway Gazette International. January 2007. p. 6.
- ^ "About DOR". Directly Operated Railways. 2009. Archived from the original on 27 October 2010.
- ^ Leftly, Mark (18 January 2016). "Government accused of 'contracting out' emergency train franchises to private firms". The Independent.
- ^ "East Coast train line to be put into public control". BBC News. 16 May 2018.
- ^ "Troubled rail firm Northern brought under government control". BBC News. 29 January 2020.
- ^ "Welsh Government takes control of franchise". The Railway Magazine. No. 1436. November 2020. p. 6.
- ^ "Southeastern: Government takes over services after serious breach". BBC News. 28 September 2021.
- ^ "Connex sacked from South-east franchise". The Railway Magazine. No. 1229. September 2003. p. 10.
- ^ "East Coast rail change confirmed". BBC News. 5 November 2009.
- ^ "Scotland's train operator ScotRail to be nationalised". BBC News. 17 March 2021.
- Department for Transport
- Nationalisation in the United Kingdom
- Operators of last resort
- Post-privatisation British railway companies
- Privatisation of British Rail
- Railway companies of the United Kingdom