DfT information note on intercity express train procurement

Department for Transport note (8 pages, PDF) outlining the procurement process for the HST replacement "intercity express" train. The proposal is for:

the procurement of a fleet of between 500 and 2,000 vehicles, to be provided for approximately 30 years by a single supplier, or Consortium or Special Purpose Vehicle (SPV), under an availability and reliability agreement to future passenger rail franchisees.

The current timetable envisages a start of fleet introduction in 2014.

This appears to be additional to the proposal for 1,000 vehicles to be procured in the shorter term to relieve congestion on commuter routes.

In both cases, DfT does not say whether there would be a separate competition to finance the trains, or whether a single appointment of a rolling stock leasing company would be made, and/or whether public finance would be used. Presumably DfT is awaiting the conclusions of ORR's latest review of the rolling stock leasing market before announcing its view on these aspects.

For further information or advice please contact Franck Latrémolière.

Filed under DfT, Public transport.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon