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Dutch firm Abellio wins ScotRail contract Dutch firm Abellio wins ScotRail contract from FirstGroup
(35 minutes later)
Dutch rail operator Abellio has won the £2.5bn franchise to run ScotRail services from April 2015. Dutch rail operator Abellio will run ScotRail services from April 2015, after promising to invest millions in improving services.
It will take over from Aberdeen-based FirstGroup, which has run rail services in Scotland for the past 10 years.It will take over from Aberdeen-based FirstGroup, which has run rail services in Scotland for the past 10 years.
Scottish Transport Minister Keith Brown said Abellio would invest millions to improve services. Abellio has also pledged to deliver a better deal for ScotRail workers.
ScotRail said it was disappointed FirstGroup's bid had not succeeded and that it would work to ensure a smooth transition. However, Union bosses reacted angrily to the firm being handed the contract, saying public ownership should be the preferred option for the service.
It has already been announced that FirstGroup, based in Aberdeen, is to lose the franchise to run Caledonian Sleeper services. FirstGroup had been competing against Abellio, Arriva, MTR, and National Express for the right to operate the ScotRail contract.
'Credible plans' Scottish Transport Minister Keith Brown said the franchise, worth up to £6bn, would run for 10 years, with a provision for the government to cancel the contract at the halfway point, if Abellio failed to meet its obligations.
The company has been operating ScotRail services since August 2004. Ministers said the deal would deliver improved services for passengers, including:
And for ScotRail staff, the government also said the new contract would result in:
Mr Brown said: "The Scottish government believes good public transport improves the lives of the people and the economy of Scotland.
"Following extensive consultation by the Scottish government, Scotland's railway has attracted a world leading contract to deliver for rail staff and passengers."
The minister added: "We've already ensured that regulated rail fares will stay in line with inflation or less, and Abellio has come up with some truly innovative ways to make rail even more affordable, such as the £5 intercity fare anywhere in Scotland and reduced ticket prices for jobseekers and those newly in work, as well as a price promise for guaranteed best value fares."
In a statement, FirstGroup chief executive Tim O'Toole said the firm was "very proud" of its success in operating First ScotRail.In a statement, FirstGroup chief executive Tim O'Toole said the firm was "very proud" of its success in operating First ScotRail.
He added: "We have kept our promises and more for 10 years, delivering record levels of service including during this extraordinary summer in Scotland with the Commonwealth Games and the Ryder Cup.He added: "We have kept our promises and more for 10 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.""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."
The firm said it was still in with the Department for Transport (DfT) over the First TransPennine Express and First Great Western franchises.The firm said it was still in with the Department for Transport (DfT) over the First TransPennine Express and First Great Western franchises.
ScotRail employs almost 5,000 staff and operates 2,400 train services every weekday. The current franchise arrangements end on 31 March 2015. The new franchise will be for a term of up to 10 years.
Union angerUnion anger
FirstGroup had been competing against Abellio, Arriva, MTR, and National Express for the right to operate the service. Manuel Cortes, leader of the TSSA rail union, earlier described the the possibility of an Abellio franchise as "a slap in the face for Scots rail passengers".
Union bosses reacted angrily to reports Abellio was to be handed the contract.
RMT general secretary Mick Cash told BBC Radio Scotland's Good Morning Scotland programme: "We believe public ownership is better, is more efficient and it's safer and it gives you great accountability.
"All you're seeing in private ownership is that money's being sucked out of the industry and given to the private sector shareholders, or in this case is going to go to subsidise the Dutch railways."
Manuel Cortes, leader of the TSSA rail union, described the the possibility of an Abellio franchise as "a slap in the face for Scots rail passengers".
He said: "Only a few weeks ago, the Scottish people were promised the power to run a publicly owned railway which would put them first, ahead of private rail firms.He said: "Only a few weeks ago, the Scottish people were promised the power to run a publicly owned railway which would put them first, ahead of private rail firms.
"Now the Scottish government wants to hand that railway to a firm run by Dutch state railways.""Now the Scottish government wants to hand that railway to a firm run by Dutch state railways."
RMT general secretary Mick Cash told BBC Radio Scotland's Good Morning Scotland programme: "We believe public ownership is better, is more efficient and it's safer and it gives you great accountability.
"All you're seeing in private ownership is that money's being sucked out of the industry and given to the private sector shareholders, or in this case is going to go to subsidise the Dutch railways."