Posted 17th June 2021 | 1 Comment

Govia Thameslink emergency contract extended

THE government has extended Govia Thameslink Railway’s Emergency Recovery Measures Agreement from 20 September to 31 March 2022.

The original GTR franchise was unusual, because the DfT collected the revenue from the beginning, paying Go-Ahead a management fee.

However, GTR had to pay its own costs until the first pandemic emergency measures put all franchises on hold in March last year. The government then announced in September that franchises would not be restored, and the new Williams-Shapps rail review says they will be replaced by low-risk concessions in the longer term.

Go-Ahead said about 90 per cent of its revenues are now coming from contracts which do not include revenue risk, and that Govia Thameslink Railway provides ‘a margin of up to 1.5 per cent’.

Go-Ahead CEO David Brown said: ‘The extension of this contract recognises the vital role GTR plays in connecting communities and enabling their green and sustainable economic recovery. More people are using our rail services now than at any time during the pandemic, and we look forward to welcoming more customers back in the months ahead.’

The extension of the present GTR arrangement follows the award of the first two National Rail contracts to FirstGroup last month, covering South Western Railway and TransPennine Express. These contracts are due to run until May 2023.

Reader Comments:

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  • Andrew Gwilt, Benfleet Essex

    Maybe Southern who are part of GTR should start replacing the Class 313 and Class 455 and to bring in new rolling stocks. Such as new rolling stocks including CAF Civity, Siemens Desiro City or Alstom Aventra. And classified in the Class 4xx/Class 7xx category.
    [Southern and the other operators can no longer decide whether to replace rolling stock. The DfT is now in control until Great British Railways takes over. The days of commercial freedom for operators have gone!--Ed.]