Partner Article

Stagecoach Virgin promise to invest £140 million in East Coast mainline route

Stagecoach and Virgin have joined in a consortium that has won the franchise to run the East Coast mainline rail route.

The consortium has promised to invest £140 million in the route over eight years, and will pay the government £3.3 billion for the contract.

The consortium will be named Inter City Railways, said plans included 23 new services from London, and 3,100 extra seats for the morning peak time by 2020.

The franchise covers the route between London and Edinburgh, and has been publicly run since 2009.

However the return of the route to the private sector has met with criticism from rail union RMT which called the return to the private sector “a national disgrace”. Mick Cash, RMT general secretary said the contract was “an act of utter betrayal.”

Other companies bidding to win the franchise included FirstGroup and a joint venture between Eurostar and French firm Keolis.

Martin Griffiths, chief executive of Stagecoach Group, said: “Passengers using the East Coast mainline will benefit from hundreds of millions of pounds of infrastructure investment and service improvements over the next decade.

“Together with Virgin, our innovative plans will give customers new services, faster and more frequent trains, and easier, more personalised journeys.”

Transport Secretary Patrick McLoughlin said: “This is a fantastic deal for passengers and for staff on this vital route. It gives passengers more seats, more services and new trains.

“We are putting passengers at the heart of the service. I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.”

Martin Griffiths, chief executive of Stagecoach Group, said: “Passengers using the East Coast mainline will benefit from hundreds of millions of pounds of infrastructure investment and service improvements over the next decade.”

This was posted in Bdaily's Members' News section by Clare Burnett .