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| Virgin fights for rail route deal | Virgin fights for rail route deal |
| (20 minutes later) | |
| Virgin Rail is set to battle three rivals for the New Cross Country rail services, after the government named preferred bidders for the franchise. | Virgin Rail is set to battle three rivals for the New Cross Country rail services, after the government named preferred bidders for the franchise. |
| Virgin will be vying with National Express, Arriva and First Group to win the contract for the routes. | Virgin will be vying with National Express, Arriva and First Group to win the contract for the routes. |
| Elsewhere, Arriva, First Group National Express and Stagecoach are battling for control of the East Midlands franchise. | Elsewhere, Arriva, First Group National Express and Stagecoach are battling for control of the East Midlands franchise. |
| The West Midlands franchise is also up for grabs following last year's shake-up of the UK's rail franchises. | The West Midlands franchise is also up for grabs following last year's shake-up of the UK's rail franchises. |
| Govia, Hong Kong's MTR and a Serco-Nedrailways joint venture are targeting the contract. | Govia, Hong Kong's MTR and a Serco-Nedrailways joint venture are targeting the contract. |
| NEW CROSS COUNTRY FRANCHISE Contract starts November 2007Takes in current Cross Country franchiseIncludes former Central routes running from Stansted to Birmingham, and Cardiff to NottinghamRuns until 31 March 2016 | NEW CROSS COUNTRY FRANCHISE Contract starts November 2007Takes in current Cross Country franchiseIncludes former Central routes running from Stansted to Birmingham, and Cardiff to NottinghamRuns until 31 March 2016 |
| Under government plans announced in October 2005, the New Cross Country network will incorporate Central Trains' current services which cover Nottingham to Cardiff routes, Nottingham to Hereford and Birmingham-Stansted Airport. | Under government plans announced in October 2005, the New Cross Country network will incorporate Central Trains' current services which cover Nottingham to Cardiff routes, Nottingham to Hereford and Birmingham-Stansted Airport. |
| Virgin has been running the current Cross Country route, which covers almost all England and Scotland - spreading from Aberdeen to Penzance and from Glasgow to Brighton, since 1997. | |
| Performance targets | Performance targets |
| According to the Department for Transport (DfT) the new franchise will run from November 2007 to March 2016 and will be subject to achieving pre-set performance targets in the final two years and three months of the contract. | According to the Department for Transport (DfT) the new franchise will run from November 2007 to March 2016 and will be subject to achieving pre-set performance targets in the final two years and three months of the contract. |
| Virgin welcomed the news saying it was "delighted" to be short listed. | Virgin welcomed the news saying it was "delighted" to be short listed. |
| EAST MIDLANDS FRANCHISE Begins operating November 2007Formed from Midland Mainline franchiseAlso takes in Norwich and local servicesRuns until 31 March 2015 | EAST MIDLANDS FRANCHISE Begins operating November 2007Formed from Midland Mainline franchiseAlso takes in Norwich and local servicesRuns until 31 March 2015 |
| "We put forward our very strong credentials as a rail operator and see this decision as confirmation of our skills and experience as an industry-leading operator," Virgin Railways chief Tony Collins said. | "We put forward our very strong credentials as a rail operator and see this decision as confirmation of our skills and experience as an industry-leading operator," Virgin Railways chief Tony Collins said. |
| Rival bidder National Express - which currently runs the Central, Midland Mainline and Silverlink franchises in the Midlands - said the rail route shake-up would provide an "exciting opportunity". | Rival bidder National Express - which currently runs the Central, Midland Mainline and Silverlink franchises in the Midlands - said the rail route shake-up would provide an "exciting opportunity". |
| The group which is bidding for the New Cross Country and East Midlands services said it was "developing exciting and innovative ideas that will set even higher standards for customer service and value for money". | The group which is bidding for the New Cross Country and East Midlands services said it was "developing exciting and innovative ideas that will set even higher standards for customer service and value for money". |
| West Midlands battle | West Midlands battle |
| Meanwhile, Stagecoach - which Virgin Rail owns a 49% stake in - said it was looking forward to bidding for the East Midlands franchise, as it would give it the chance to "expand our portfolio". | Meanwhile, Stagecoach - which Virgin Rail owns a 49% stake in - said it was looking forward to bidding for the East Midlands franchise, as it would give it the chance to "expand our portfolio". |
| WEST MIDLANDS FRANCHISE Runs until 19 September 2015Takes in Silverlink County ServicesAlso involves remaining Central Trains franchises | WEST MIDLANDS FRANCHISE Runs until 19 September 2015Takes in Silverlink County ServicesAlso involves remaining Central Trains franchises |
| Go-Ahead Group, owner of fellow bidder Govia, added the business would be a good fit with its Southern and South Eastern railway services. | Go-Ahead Group, owner of fellow bidder Govia, added the business would be a good fit with its Southern and South Eastern railway services. |
| "We have a strong focus on commuter rail operations and extensive experience of improving performance, enhancing passenger perception and managing capacity," chief executive Keith Ludeman said. | "We have a strong focus on commuter rail operations and extensive experience of improving performance, enhancing passenger perception and managing capacity," chief executive Keith Ludeman said. |
| The DfT now expects its pre-qualified bidders to submit detailed tenders for the franchises by February 2007. Winners of the process will be announced next summer. | The DfT now expects its pre-qualified bidders to submit detailed tenders for the franchises by February 2007. Winners of the process will be announced next summer. |