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Troubled franchise could lose rail route

The franchise to run commuter train services from Stowmarket and Bury St Edmunds to London could be stripped from rail operator National Express, the Government has revealed.

Lord Adonis, secretary of state for transport, told the House of Lords yesterday the Department of Transport could terminate National Express' East Anglian main line rail services and commuter routes, following the expected collapse of the firm's East Coast franchise later this year.

The east coast route, which runs from London to Edinburgh, reported a loss of 20 million in the first six months of this year in a trading report announced on Wednesday.

Lord Adonis said the Government had created a publicly-owned franchise to take over the east coast service, operated by a subsidiary NXEC Trains Ltd, when it expects to become insolvent towards the end of this year.

Services on the east coast line will continue to run as usual until the take-over and all staff will transfer to the new East Coast Main Line company.

A statement released by National Express Group said it would continue to meet all contractual obligations on its East Anglian and London to Southend services.

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Friday 25 May 2012

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