Caledonian Sleeper has released an update on its franchise agreement, which is in place with the Scottish Government.
Back in 2014, the franchise contract was signed with Serco beginning operations. Back then, Mk3 coaches were used, however, Mk5 coaches from CAF now operate.
However, a rebase clause in the contract means that after seven years of the contract, Serco could present alternative arrangements for the remaining years of the franchise.
Unfortunately, Serco and the Scottish Government could not reach an agreement.
This means that in June 2023, the Franchise will end and if no other agreements can be reached, Serco will hand the Franchise into the management of the Scottish Government.
John Whitehurst, Managing Director of Serco’s Transport business, said: “When Serco took over the Caledonian Sleeper service in April 2015, we inherited an unreliable and outdated fleet of carriages dating back to the 1970s.
“We are extremely proud that under our leadership and management we have introduced new rolling stock and other significant innovations that have completely transformed the service. The service that Serco provides today is widely recognised as being outstanding, providing hotel standard service and accommodation that is renowned and admired around the world and loved by the people who travel on it. We thank the Minister for her warm words recognising the achievements of the Serco Caledonian Sleeper team.
“We note that the Government’s decision not to accept our proposals has not been made due to any performance issues; from Serco’s point of view the service has been loss-making over the life of the contract and the proposals that we made to Transport Scotland were to put it on a more sustainable financial footing. We will continue to work with Transport Scotland around options for the future management of the service and in the meantime will continue to deliver a world-class service for our guests.”
Responses
If Caledonian Sleeper was to extend its contact then I do think that they should order Bi-mode locomotives to be used on London Euston-Fort William, Aberdeen, Inverness and the far North of Scotland.
With Lumo still providing non-stop direct service from London King’s Cross-Edinburgh Waverley that only stops at Stevenage, Newcastle and Morpeth.
Great news.. but .
I have now used this service twice now in the last month and still am shocked that when boarding ..no bar or restaurant facility as well as no breakfast .yet I paid full price ….
What is going on
I have no knowlege about Serco, or even the relevance of Anglo Scottish sleeper services. However there is no doubt some sort of a market exists. The question is, “is it an economic market?”
What I do know, is that Government and Politicos are useless when it comes to Transport and best kept away from Transport and Infrastructure. They always come up with a high cost option at a cut price cutting corners. The Scottish Government here’s track record on Transport here is abysma, worse than Jonah in the Beano.
The Market always wins out in the end, and if the service can’t make money without subsidy it has to go, even though as an enthusiast id love to see it continue. I dont think Serco are saints either.
“If the service can’t make money without subsidy, it has to go”.
This takes us back to Dr Beeching’s days in the 1960s and, if his recommendations in a similar vein had been followed completely, we’d have no significant railway network left.
No railway system in the world makes enough money to be self-sustaining and all require some sort of subsidy from general taxation. The UK is no different and, with our highly congested roads, there is a strong case for subsidies to keep railway services open. The Scottish sleeper trains provide an attractive alternative to flying and are well used. For this reason alone, they are likely to justify subsidising.