FirstGroup


has
published
two
more
documents
claiming
that
open
access
passenger
services
are
value
for
money
and
boost
economic
growth.

First,
along
with
Virgin,
is
facing
a
setback
to
its
plans
to
launch
new
services
after
the
government
sent
two
letters
sounding
discouraging
notes,
although
it
is
still
Department
for
Transport
policy
to
allow
open
access
services
where
they
provide
‘improved
connectivity
and
choice
for
passengers’.

The
first
letter
was
from
transport
secretary
Heidi
Alexander,
who
wrote
to
the
Office
of
Rail
and
Road
on
6
January
this
year
voicing
some
reservations
about
the
recent
boom
in
open
access
applications,
saying:
‘There
is
a
balance
to
be
struck
to
ensure
the
benefits
provided
by
open
access
operators
outweigh
the
impacts
they
have
on
taxpayers
and
the
ability
to
operate
the
network
efficiently.
We
need
to
be
mindful
of
the
impacts
of
open
access
such
as
the
level
of
revenue
they
can
abstract
from
contracted
services
and
the
associated
implications
for
passengers.’

She
said
her
letter
did
not
amount
to
any
change
to
her
formal
guidance,
but
that
changes
to
that
guidance
were
being
‘considered’.

FirstGroup
then
hosted
an
event
on
20
January
at
which
it
highlighted
the
merits
of
open
access,
and
also
produced
a
report,
but
the
Department
for
Transport
then
wrote
to
the
Office
of
Rail
and
Road
on
4
February,
saying
that
the
Department
did
not
support
eight
out
of
the
nine
applications
which
have
been
lodged
with
the
ORR.
The
only
route
to
get
qualified
official
approval
was
London
to
Wrexham,
which
is
being
proposed
by
Alstom.

The
DfT
is
particularly
doubtful
about
a
set
of
proposals
from
Virgin,
which
would
mean
as
many
as
five
open
access
routes
from
Virgin’s
old
home
at
London
Euston
to
places
such
as
Manchester,
Rochdale
(or
Preston),
Liverpool,
Birmingham
and
Glasgow.
The
DfT
told
the
ORR:
‘We
do
not
believe
that
the
quantum
of
paths
sought
is
feasible
or
realistic
and
note
that
the
WCML
already
operates
at
close
to
capacity,
particularly
into/out
of
London
Euston.’

First,
which
like
other
operators
is
set
to
lose
all
its
remaining
National
Rail
Contracts
under
renationalisation
plans,
points
out
that
open
access
operators
do
not
receive
any
financial
support
from
the
government,
typically
operate
to
places
which
are
not
already
well-served,
and
are
loyal
to
their
communities
and
customers.

The
latest
two
studies
have
been
published
in
the
wake
of
the
consultation
into
the
government’s
plans
for
railway
reform,
which
was
launched
on
18
February.

First
has
also
said
that
it
would
buy
14
new
Hitachi
trains,
costing
around
£500
million,
for
new
open
access
routes,
and
that
another
£460
million
could
follow.

The
first
new
study
is
‘The
impact
of
open
access
operators
on
industry
revenue
and
journeys’,
compiled
by
consultants
Winder
Phillips.
Shorter
journey
times,
direct
journeys,
increased
services
and
fare
competition
are
all
cited
as
key
benefits.

The
second
was
compiled
by
Arup,
and
is
entitled
‘Open
access
operations
paying
their
way’.
It
says
First’s
Lumo
will
be
paying
about
10
per
cent
more
in
track
access
charges
per
train
kilometre
than
LNER,
and
about
35
per
cent
more
than
Avanti
West
Coast.

‘FirstGroup’s
open
access
managing
director
Martijn
Gilbert
said:
‘These
studies
clearly
demonstrate
how
open
access
operators
are
paying
their
way,
generating
passenger
journeys
and
revenue.
They
do
it
while
supporting
economic
growth
for
the
UK
as
a
whole
and
the
regions
they
serve.

‘We
have
a
proven
track
record
of
finding
and
reliably
operating
in
gaps
in
existing
timetables,
efficiently
using
spare
capacity
in
the
network
between
services
including
peak
time
commuter
and
freight
trains,
and
which
doesn’t
increase
the
fixed
costs
of
the
railway
or
place
any
additional
burden
on
taxpayers.

‘As
the
Railways
Bill
Consultation
is
issued,
it
is
important
that
this
well-loved
part
of
the
railway
can
continue
to
operate
and
grow
alongside
Great
British
Railways.
With
our
applications
to
expand,
Lumo
and
Hull
Trains
are
able
to
deliver
further
economic
growth
quickly,
playing
an
important
part
in
a
successful
railway
for
the
benefit
of
all
rail
users
and
the
communities
we
serve.’

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