United Kingdom to renationalise East Coast train line

Ceria Alfonso
May 16, 2018

Transport Secretary Chris Grayling said he would terminate the contract with Virgin Trains East Coast from the end of next month.

The organisation, which has run the franchise with Virgin Trains since 2015, said it had been advised an "operator of last resort" would be appointed to run the London to Edinburgh service.

Ms Mayer said: "We should take heed of other successful European models of rail ownership and I look forward to a Labour government which will bring all rail lines back under public control where they belong".

Stagecoach reported losses on the line and in November past year Mr Grayling announced that the franchise would be terminated in 2020 to enable it to become a public-private railway.

This is a breaking news story and will be updated.

"I plan to use a period of operator of last resort control to shape the new partnership", said Mr Grayling.

According to the Guardian, Grayling is deciding whether to renationalise the rail line between London and Edinburgh or negotiate a not-for-profit arrangement with current franchisees Stagecoach and Virgin Trains.

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Former transport minister Lord Adonis labelled the government's decision a "bailout" for the companies that would cost the taxpayer billions of pounds.

Its the third private operator to fail to complete its full term in running the services on the route.

"We are surprised and disappointed that the Department for Transport has chosen not to proceed with our proposals".

"However, we respect the Government's decision".

Stagecoach pledged to "work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements". During that time, we have attracted more passengers, greatly increased investment, achieved industry leading customer satisfaction and made significant payments to the taxpayer to reinvest in public services.

"After three shambolic private sector failures on the East Coast the message should now sink in that these cowboys can not be trusted and should be locked out of the system on a permanent basis".

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