Posted 4th December 2009 | 7 Comments
German bid for Tyne & Wear Metro wins preferred status
Deutsche Bahn is the preferred bidder to operate Tyne & Wear Metro from April next year. DB Regio has beaten an in-house bid from Tyne & Wear PTE, which had also won through to the final shortlist.
The announcement by Nexus will be followed by the finalising of a contract which will allow DB Regio to operate the system for between seven and nine years. The move has been vigorously opposed by the unions, who had wanted the system to stay wholly within the public sector.
However, awarding an operating concession was a key requirement from the Department for Transport, which is providing more £300 million in capital funding to modernise the system, plus a long-term operating subsidy.
Nexus said the change would maintain local control and ownership, allow 'significant' improvements and also create scores of jobs in the supply chain as well as protecting existing employees. Fares and the service specification will continue to be decided by Nexus.
Nexus director general Bernard Garner said: “Today’s announcement marks the final stage in a comprehensive 15-month process, involving some of the world’s leading transport firms, to choose the very best contractor to operate trains and stations on behalf of Nexus.
"Our preferred bidder, DB Regio (Tyne and Wear) Ltd, is offering better customer service to our 40 million passengers a year, good value to the taxpayer and the best package of terms for staff. It will also drive our £20 million programme to completely refurbish all 90 Metrocars. While Nexus will continue to set fares and service specifications, we will pay an agreed fee to the operating concessionaire based on its performance.”
Meanwhile, the RMT pledged to continue its opposition, and the union's general secretary Bob Crow condemned the forthcoming contract as a 'betrayal'.
He said: “This is a disaster for Tyne and Wear which will be felt right across the Region. We can expect this essential transport service to be bled dry in the dash for profits by the private company. This decision is a kick in the teeth for the vast majority of local people who have supported the campaign against privatisation."
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
MALCOLM, GLASGOW
I have used the Metro in Newcastle and realised at the end of both my two journeys that the local do not bother there seems to be no staff to enforce fines and it is probobly better to risk a fine a year in exchange for free travel as a visitor I felt ripped off by the locals who realised there is no actual need to buy tickets at certain times of the day because there is no control in place to require you to produce them.
Perhaps the employees do not like unsocialable shift patterns. They do however through their union assume they have a right to make decisions for Nexus despite the fact they have no investment in the company whay so ever.
The Germains will make the locals pay for the service which is important to the company that has the financial responsibility of maintaining the service.
Phil, Neath, Wales
The Germans will run it well, they promote quality and precision.
About time we had some well run railways again in the UK.
Better than cheap and cheerful, it will do attitudes.
andy williams., Eastbourne, east sussex
We live in Eastourne who is happening about the the uckfield line.it know have a metor line from uckfield to lewes in Eastsussex. and have it built by the germanys railman has the do not take long at all.
Andy, telford, shropshire
These lot are taking over!!!!
rob, Worcester, England
The Germans are taking over UK TOC's aswell as the Freight market. Is it legal or illegal. I thought that no state run / funded company could purchase any companies these days due to competition regulations within the EU. DB is owned by the German government which means they can outbid anyone within any sector which is why we are seeing DB start to dominate so quickly within the UK and other EU countries where they are taking over large railfreight sectors across Europe. If it is illegal then why is nobody doing anything?
Malcolm Dobell, Milton Keynes, UK
It seems extraordinary that anyone can describe this as privatisation when the preferred bidder is owned by the German state.
martin giles, bristol, england
when the national rail system was at its best befor public ownership so why should it be a bad for the local community as the price will be set by nexus and DB are genraly good at running railways soons as they are europs largest operator.