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That happened when Natioanl Express abandoned the National Express East Coast franchise and the Department for Transport established a new company to take over until the franchise could be retendered.

AFAIK, there was no legal requirement at that time to award a new franchise to a private operator, but the Fourth Railway Package does make competitive tendering obligatory from 2023 onwards. Governments can own train operating companies, but those companies can and will fail to win tenders.

by Gag Halfrunt on Sat May 13th, 2017 at 11:25:06 AM EST
[ Parent ]
so how are SNCF gonna stay in French state hands? And Db seems to be pretty much a state run franchise afaik.

tbh this is neoliberal dogma gone bonkers and needs to be called out as such.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Sat May 13th, 2017 at 02:58:09 PM EST
[ Parent ]
SNCF can remain in government ownership, but they will be only one of several players bidding for regional and long distance franchises (including probably Arriva, First, Abellio, Stagecoach and all the other usual suspects). It will be as if John Major's government had allowed British Rail to bid for train operating franchises.

Regional services are already planned/commissioned and subsidised by the regional councils, so the leap to competitive franchising won't be that big.

Regional services in Germany are already franchised by Land governments.

Regional rail and local rail traffic is organised and subsidised (as the fares usually do not cover the running costs) by the federal states. Usual procedure under EU legislation is to award the contract to the lowest bid by means of a tender procedure. The respective states are free to announce short- or long-term contracts as well as to stipulate further conditions e.g. on rolling stock. In recent years, many bids were won by private rail companies like NordWestBahn or Arriva, although some states have awarded long-term contracts to local DB Regio subsidiaries.
by Gag Halfrunt on Sat May 13th, 2017 at 10:03:42 PM EST
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