NS bid 20% more than rivals when it won British franchise
Monday 20 February 2012
Dutch state rail company offered 20% more than its rivals when it won the concession to operate services in eastern England last year, the Financial Times reports on Monday.
Abellio, which is part of the NS, won the 29-month Greater Anglia franchise by offering to pay the government £418m. This compares with losing bids of £359m and £347m. The figures were obtained by Local Transport Today magazine using freedom of information legislation.
Shore Capital transport analyst Karl Burns told the FT the service is unlikely to make much money on the deal, but that it is a warning shot to operators.
Burns told the FT state-backed operators can bid more aggressively as they do not need to make the same rates of return as their listed rivals.
Abellio is one of four operators shortlisted to run one of Britain’s biggest rail franchises, the west coast line from London to Glasgow. The company already operates services in several other parts of Britain, as well as Germany and the Czech Republic.
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Of course being NS, when they remove the toilets that will save some money and they can squeeze a few more passengers in. On the otherside the drivers will need to be retrained on handling the bags of urine so its swings and roundabouts.
By Jennifer Burke | February 20, 2012 8:31 AM
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Can we assume that the NS will run an appalling service in the UK while charging passengers a pound of flesh to travel? It is, after all, the British way.
By groverpm | February 20, 2012 8:20 AM