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May 12th 2009
A major shake up of the rail franchise system looks likely as troubled National Express Group continues discussions with the DfT regarding the recession's impact on revenue on the East Coast Main Line.
Projections of 10% revenue growth have proved illusory. First Group and Arriva are also understood to be voicing concerns at revenue viability in discussions with the Department for Transport.
As government borrowing to bail out banks hits unprecedented levels, the rail industry pushes ahead this summer with major works including network wide bridge improvement schemes. The Tay Bridge project alone is creating 75 new jobs.
Rail chiefs have welcomed the Lord Adonis initiative backing station improvements schemes. Chris Green is to head a new task force deciding where new investment can be best spent. Lord Adonis is thought to have become openly credulous at conditions rail staff have to put up with on his recent national rail tour.
It can't happen quick enough, say industry leaders. Michael Roberts, Chief Executive of ATOC said, ‘Train companies are keen to move faster on initiatives to improve stations and have been calling for quicker procedures to approve projects. We have also recently put proposals to the Department for Transport to bring forward further improvements, such as much-needed extra car parking space at over 60 stations.
'We very much look forward to the Ministerial initiative, giving a boost to such ideas and enabling operators to deliver the passenger improvements we want to make more quickly.'
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