Serco joint venture signs Northern rail train operating franchise
Date : 19 October 2004
Serco Group plc's ("Serco") 50:50 joint venture with NedRailways BV today has signed a contract with the Strategic Rail Authority and five Passenger Transport Executives to operate the Northern rail train operating franchise.
This new franchise will provide inter-urban commuter and rural services throughout the north of England. Scheduled to start on 12 December 2004, the franchise will run for up to eight and three quarter years, with the final two years dependent on achieving performance targets.
The Serco-NedRailways contract is expected to have a turnover of approximately £4billion over the eight and three quarter year period. After initial mobilisation, the service is expected to be earnings neutral for Serco in 2004 and both earnings and cash positive from 2005.
Building on the success of its other operations in the UK, Serco-NedRailways is focused on delivering year-on-year improvements in train punctuality and performance, modernising ticketing systems and improving the availability and reliability of the rolling stock.
Serco chief executive Chris Hyman said: "Serco's integrated transport business is going from strength to strength. Its track record of successfully delivering improved services to passengers can now be extended to millions of people across the north of England through Serco-NedRailways."
Serco, twice winner of the UK's National Rail Operator of the Year award, has extensive experience of rail passenger services and change management through operating Docklands Light Railway, Manchester Metrolink, Copenhagen Metro and Great Southern Railways in Australia. Serco-NedRailways operates Merseyrail, having taken the concession over in July 2003.
Download PDF [PDF, 178 KB] (Please note: this link will open the page in a new browser window)