TIDMSGC
RNS Number : 3960I
Stagecoach Group PLC
25 March 2015
Stagecoach Group plc
25 March 2015
DEED OF AMENDMENT TO SOUTH WEST TRAINS FRANCHISE
Stagecoach Group plc ("Stagecoach") is pleased to confirm that
its subsidiary, Stagecoach South Western Trains Limited ("South
West Trains"), has agreed a Deed of Amendment ("DoA") to the South
West Trains franchise with the Department for Transport
("DfT").
The DoA provides for accelerated investment of around GBP50m to
deliver passenger improvement initiatives between now and February
2017. It means customers do not have to wait for a new franchise to
benefit from these initiatives, while taxpayers will gain better
value from public investment.
The current South West Trains franchise will end in February
2017. The DfT and South West Trains are seeking to negotiate an
extension to April 2019 of South West Trains operation of the
franchise.
Key benefits to passengers from this DoA include:
-- more services and seats: more than 57,000 additional seats
will be created through the introduction of 73 new evening and
weekend services on suburban and mainline routes and through
additional seating on existing services
-- increased car parking: an extra 1,400 spaces by end of 2017
to accommodate growth at the busiest stations
-- smarter journeys: a new online booking system and smart
ticketing, allowing joined up journeys with London's bus and Tube
network
-- improved customer information, marketing and fares
promotions: a new website and mobile app, a customer relationship
management programme to better understand passenger priorities, and
promotional campaigns
-- easier ticket purchase: 170 new easy-to-use ticket machines,
including 90 with a facility for customers to ask for help to
ensure they get the best fare
-- enhanced customer service: more visible staff on station
concourses to help passengers; customer service NVQ qualifications
for employees; mystery shopping and online surveys
South West Trains operates more than 1,600 trains a day and
handles more than 220 million passenger journeys a year on one of
Europe's busiest rail networks. It connects more than 200 stations
and includes routes through Hampshire, Surrey, Dorset, Wiltshire,
Berkshire, Devon, Somerset and Greater London, serving a mixture of
commuters and longer-distance travellers.
The DoA initiatives follow a number of enhancements already
underway to deliver a better service to passengers. These
include:
-- the roll-out of a GBP65m investment in 108 refurbished train carriages for the network
-- plans for a GBP210m fleet of 30 new five-carriage trains
-- collectively, these two projects will deliver a total
peak-time capacity increase of around 30% by 2018
-- major infrastructure improvements at London Waterloo to accommodate the new trains
-- bringing the remaining four platforms of the former Waterloo
International Terminal back into full use and then extending London
Waterloo Platforms 1-4 to accommodate longer 10-carriage trains
-- a GBP7m upgrade to the railway through Wimbledon, improving
reliability and punctuality for hundreds of thousands of
passengers
Stagecoach does not currently expect the DoA to have a material
impact on profit for the remaining period of the South West Trains
franchise.
Stagecoach Group Chief Executive Martin Griffiths said: "This is
a great deal for passengers and taxpayers and will ensure work gets
underway on a package of customer improvements without delay. It
also lays the groundwork for negotiations for a new Direct Award
extension to the franchise in due course.
"The South West Trains network, operating out of London
Waterloo, Britain's busiest station, is a key part of the country's
transport infrastructure. These improvements will support the
regional economy and enhance the transport network for communities
across the south and south-west of England."
Tim Shoveller, Chief Executive of the South West Trains-Network
Rail Allliance, said: "We have achieved a huge 50% growth in the
number of passenger journeys on our network in the past 10 years.
Looking ahead, the scale of growth is set to continue. That is why
we are absolutely focused on improving the railway for today's
customers and planning for the future.
"We have invested more than GBP22m in improvements at more than
30 stations over the past 18 months, as well as starting to
introduce free WiFi. In the next five years, we will be spending
more than GBP1.2bn on the rail network as part of a wider programme
to deliver an extra 115,000 seats a day into the capital by
2019."
Rail Minister Claire Perry said: "As we spend record amounts on
modernising our railways as part of our long term economic plan,
our franchising programme is also unlocking considerable investment
from train operators.
"This package of improvements from South West Trains, with its
strong focus on customer service, is very welcome and will make a
huge difference to passengers on the many busy routes served by
this franchise."
Ends
For further information, please contact:
Stagecoach Group plc www.stagecoach.com
Investors and analysts
Ross Paterson, Finance Director 01738 442111
Bruce Dingwall, Group Financial Controller. 01738 442111
Media
Steven Stewart, Director of Corporate Communications. 01738 442111 or 07764 774680
John Kiely, Smithfield Consultants. 0207 360 4900
Notes to Editors
About the South West Trains-Network Rail Alliance
-- The South West Trains-Network Rail Alliance was formed on 29
April 2012 with the aim of delivering an improved service for
passengers with faster, more customer-focused decision-making. It
is also a step towards delivering a more efficient and cost
effective railway for the long term.
-- A single joint management team now looks after train services
and infrastructure across the South West Trains / Wessex route.
-- The Alliance is the first of its kind in the UK. Train
services operated by the Alliance are some of the busiest commuter
train services in the UK. Over 2,000 passenger and freight services
run on the network every day and the route covers 643 miles of
track, with 1,375 sets of points and 4,394 signals.
About Stagecoach Group
-- Stagecoach Group is a leading international public transport
group, with extensive operations in the UK, mainland Europe, the
United States and Canada. The Group employs around 38,000 people,
and operates bus, coach, train, and tram services.
-- Stagecoach is one of the UK's biggest bus and coach operators
with around 8,300 buses and coaches. Around 2.8 million passenger
journeys are made on Stagecoach's buses every day on a network
stretching from south-west England to the Highlands and Islands of
Scotland. The Group's business includes major city bus operations
in London, Liverpool, Newcastle, Hull, Manchester, Oxford,
Sheffield and Cambridge. Low-cost coach service, megabus.com,
operates a network of inter-city services across the UK and
continental Europe.
-- Stagecoach is a major UK rail operator, running the South
West Trains, Island Line and East Midlands Trains networks. It is
also the majority shareholder (90%) in the new Virgin Trains East
Coast franchise and has a 49% shareholding in Virgin Rail Group,
which operates the West Coast rail franchise.
-- Stagecoach also operates the Supertram light rail network in Sheffield.
-- In North America, Stagecoach operates around 2,400 buses and
coaches in the United States and Canada. Megabus.com links around
130 key locations in North America. Stagecoach is also involved in
operating commuter, transit, contracted, charter, sightseeing and
airport scheduled services.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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