Government to run East Coast Main Line

The Government is to take over the East Coast Main Line after cash-strapped operator National Express defaulted on its franchise agreement. Transport Secretary Lord Adonis has set up a publicly-owned company which will take over the London-to-Scotland route when National Express ceases to operate the franchise later this year. Lord Adonis said the Government may have grounds to terminate National Express's other rail franchises - East Anglia and the London to Tilbury and Southern franchise c2c. The announcement of the takeover came as National Express confirmed its chief executive Richard Bowker, a former boss of the now-defunct Strategic Rail Authority, was leaving to take up a Middle East rail job. Terms of the East Coast franchise deal required National Express to pay the Government £1.4 billion in premiums. But passenger growth has stalled in the recession and the company has failed to renegotiate the franchise with the Department for Transport. National Express said it was no longer willing to provide financial support for the franchise. Lord Adonis said: "I have therefore established a publicly-owned company, which will take over this franchise from the point at which National Express East Coast ceases to operate. "We will agree an orderly handover with National Express. Until that date, National Express will operate services on the current basis. After that date the new public company will do so. "There will be no interruption of services. Existing operational staff - who continue to provide a good service - will transfer to the new East Coast Main Line company; so will the assets necessary for the continuation of the service. I can assure the travelling public that services will continue without disruption and all tickets will be honoured."

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ITN | July 1, 2009

Tags:. .existing. .disruption. .assure. .bowker. .willing