Dutch Firm 'To Run Scottish Trains'

The franchise to operate Scotland's railways is widely expected to be awarded to a company from the Netherlands.

It's understood Dutch publicly-owned firm Abellio will win the 10 year contract, which is worth around £2.5 billion and effective from next year.

Aberdeen-based First Group, which is also bidding, was given the franchise in August 2004.

Transport Minister Keith Brown will make an announcement later - Arriva, MTR and National Express are also in the running.

Nearly 5,000 people work for Scotrail.

Tim O’Toole, FirstGroup’s Chief Executive, said:

“We are very proud of our success in operating First ScotRail and our team were recognised last week, once again, as Rail Operator of the Year.

"We have kept our promises and more for ten years, delivering record levels of service including during this extraordinary summer in Scotland with the Commonwealth Games and the Ryder Cup.

"Our bid would have delivered even greater levels of service and growth, and we are disappointed we will not have the opportunity to implement the credible plans we submitted, building on our record of improvement across every measurable score, for the benefit of ScotRail's passengers and employees.

“We shall continue to operate First ScotRail until the new franchise commences on 1 April 2015. Until that time we will deliver further enhancements to trains and stations including further free Wi-Fi and continue important work to enable the extension of smart ticketing across the whole country and the opening of the Borders Railway next year.

“Today’s news does not alter the Group’s stated medium-term targets. As one of the largest and most experienced rail operators we are actively participating in franchise competitions with the objective of achieving earnings on a par with the last round of franchising, with an acceptable level of risk. We are in negotiations with the Department for Transport (DfT) to operate the First TransPennine Express franchise until February 2016, and continue discussions with the DfT in respect of a potential longer direct award to operate First Great Western, our largest franchise, over the period when a substantial programme of infrastructure upgrades and introduction of new trains will take place on the network.”

Green Party co-convener and transport spokesman Patrick Harvie MSP wants the award to come with a clause to allow a public body to bid in the next five years.

He said: "It would be ironic to have a Dutch national railway company taking over most of Scotland's trains. While it would be great to see public transport run by a public sector firm it should be our public sector.

"There's huge public appetite for bringing rail back into public hands. We need an assurance from the Transport Minister that the optional five year break in the Scotrail franchise will allow for a Scottish public sector operator to bid, assuming power is devolved from Westminster to allow it."