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 London & South Eastern Railway was stripped of the franchise for not declaring £25 million of revenue.[7] It is continuing to use the Southeastern name.
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.