Stagecoach (SGC), along with partners SNCF and Virgin, have begun legal action against the Department for Transport (DfT), claiming that the department has breached its statutory duties in relation to the West Coast Partnership’s rail franchise competition.
First announced in November 2016, the West Coast Partnership combines the current InterCity West Coast services with the introduction of High Speed 2. DfT launched its invitation to tender for the contract in March 2018. High speed services are due to begin in 2026.
Stagecoach and its partners, which make up the West Coast Trains Partnership, have filed a claim after DfT disqualified the group from bidding for the contract. It follows a similar claim filed earlier in May by Stagecoach East Midlands Trains in connection with the new East Midlands rail franchise, which was awarded to Abellio. DfT elected in April 2019 to bar Stagecoach and its partners from the East Midlands, West Coast Partnership and South Eastern franchise competitions.
In a statement, Stagecoach said that while the claims vary in certain aspects, common to both is the group’s refusal to take on pension risks required of operators as part of such franchising agreements.
Stagecoach group chief executive Martin Griffiths said that rail competition “should be about appointing the best operator for customers, not about passing unquantifiable, unmanageable and inappropriate risk to train companies”.
"It is disappointing that we have had to resort to court action to find out the truth around the DfT's decision-making process in each of these competitions,” he added. “However, we hope court scrutiny will shine a light on the franchising process and help restore both public and investor confidence in the country's rail system."
A DfT spokesperson said: “Stagecoach is an experienced bidder who knowingly submitted non-compliant bids on all competitions. In doing so, they disqualified themselves.”
“We have total confidence in our franchise competition process and will robustly defend decisions that were taken fairly following a thorough and impartial evaluation process”.
