Train operating company

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A train operating company (TOC) is a business operating passenger trains on the railway system of Great Britain under the collective National Rail brand. TOCs have existed since the privatisation of the network under the Railways Act 1993.

There are two types of TOC: most hold franchises let by the government, following bids from various companies, to operate services on certain routes for a specified duration, while a small number of open access operators hold licences to provide supplementary services on chosen routes. These operators can run services for the duration of the licence validity. The franchised operators have changed considerably since privatisation: previous franchises have been divided, merged, re-let to new operators, or renamed.

The term is also sometimes used to describe companies operating passenger or freight rail services over tracks that are owned by another company or a national network owner.

Management

Franchises were initially let by the Office of Passenger Rail Franchising (OPRAF). This was in turn replaced by the Strategic Rail Authority, which has since been abolished. For England and Wales, franchising is now the responsibility of the Department for Transport in the majority of cases. In Scotland, it is the responsibility of the Scottish Government. In two parts of England, local government agencies are responsible: in Merseyside, the Merseyside Passenger Transport Executive lets the Merseyrail franchise, while in London, Transport for London oversees the new London Overground and Crossrail concessions.

The Rail Delivery Group (RDG) (formerly the Association of Train Operating Companies) provides a commonality for the TOCs and provides some centralised co-ordination. Its activities include the provision of a national timetable and online journey planner facility, and the operation of the various Railcard discount schemes. Eurostar is also a member of the RDG, though it is not itself a TOC.

Organisation

For historical and geographical reasons the railway network of the United Kingdom is split into two independent systems: one in Great Britain (including the Isle of Wight), and one in Northern Ireland, which is closely linked to the railway system of the Republic of Ireland.

Great Britain

In Great Britain, passenger train services are operated by a number of companies, referred to as Train Operating Companies or TOCs, normally on the basis of regional franchises awarded by the Department for Transport Rail Group. Until 2005 this role was performed by the Strategic Rail Authority. The infrastructure of the railways in England, Scotland, and Wales – including tracks and signalling – is owned and operated not by the train companies but by Network Rail, which took over responsibility from Railtrack in 2002. Most passenger trains are owned by a small number of Rolling Stock Companies and are leased to the individual TOCs. However, a handful of TOCs own and maintain some of their own rolling stock. Train operating companies also operate most of the network's stations, in their role as station facility owners (SFO), in which they lease the buildings and associated land from Network Rail.[1] Network Rail manages some major railway stations and several stations are operated by London Underground or other companies.

All passenger TOCs in Great Britain are privately owned. The majority of these hold franchises to operate rail services on specific parts of the railway and come under the auspices of the National Rail brand. In addition, companies are able to bid for "paths" (specific parts of the overall National Rail timetable) to operate their own services, which the franchises do not operate – these operators are classed as open-access operators and are not franchise holders. Currently in Great Britain, there are two open-access operators: Hull Trains runs services between London King's Cross and Hull, and Grand Central, which operates between London King's Cross and Sunderland and between London King's Cross and Bradford. In addition, there are operators that fall outside the purview of National Rail, which operate specific services which are recent additions to Britain's railways. The main examples are Eurostar, which operates to the continent via the Channel Tunnel, and Heathrow Express, which runs fast services from London to Heathrow Airport.

A number of metropolitan railways on the network are operated by the local franchise holder in conjunction with the passenger transport executive or other civic body responsible for administering public transport. One of these bodies, the Merseyside Passenger Transport Executive, is responsible for one of three National Rail franchises not awarded by central government, namely the Merseyrail franchise, while certain National Rail services in North London came under the control of Transport for London in November 2007 as London Overground. Two other franchises, the Scottish domestic franchise, currently operated by Abellio ScotRail, and the Welsh domestic franchise, operated by Arriva Trains Wales, are awarded by the devolved executives of the two constituent nations.

The Rail Delivery Group is the coordinating body of the train operating companies in Great Britain and owns the National Rail brand, which uses the former British Rail double-arrow logo and organises the common ticketing structure. Many of the train operating companies are in fact parts of larger companies which operate multiple franchises.

Current operators

Franchise holder Train operating company
Abellio Abellio ScotRail (SR), Greater Anglia (GA) (60%), Merseyrail (ME) (50%)
Arriva Arriva Rail London (LO), Arriva Trains Wales (AW), Chiltern Railways (CH), CrossCountry (XC), Grand Central (GC), Northern (NR)
FirstGroup Great Western Railway (GW), Hull Trains (HT), South Western Railway (SW) (70%), TransPennine Express (TP)
Go-Ahead Group Great Northern (GN), London Midland (LM), Southeastern (SE), Southern (SN), Thameslink (TL) all 65%
Keolis Great Northern (GN), London Midland (LM), Southeastern (SE), Southern (SN), Thameslink (TL) all 35%
Mitsui Greater Anglia (GA) (40%)
MTR Corporation South Western Railway (SW) (30%), TfL Rail (XR)
Serco Caledonian Sleeper (CS), Merseyrail (ME) (50%)
Stagecoach East Midlands Trains (EM), Virgin Trains East Coast (GR) (90%), Virgin Trains West Coast (VT) (49%)
Trenitalia c2c (CC)
Virgin Group Virgin Trains East Coast (GR) (10%), Virgin Trains West Coast) (VT) (51%)

Northern Ireland

The sole train operating company in Northern Ireland is NI Railways, who are a subsidiary of Translink, the publicly-owned transport corporation, which also runs the Metro buses in Belfast and Ulsterbus coaches around the country. The cross-border service Enterprise (Belfast–Dublin) is jointly operated with Iarnród Éireann, the national railway company of the Republic of Ireland.

Changes

Upon privatisation in 1994, the three passenger-operating sectors of British Rail (InterCity, Network SouthEast and Regional Railways) were divided, and their existing operations were let as 25 franchises:

1990s

1994

The privatisation process began when BR's passenger sectors were divided into 25 shadow franchises[2] – these were publicly owned TOCs operating in the planned franchise areas prior to the actual franchises being put to tender:

InterCity Network SouthEast Regional Railways
CrossCountry Chiltern Lines Anglia Railways
East Coast Island Line Cardiff Railway Company
Gatwick Express LTS Rail Central Trains
Great Eastern North London Railways Mersey Rail Electrics
Great Western Network SouthCentral North West Regional Railways
Midland Main Line SouthEastern Regional Railways North East
West Coast South West Trains ScotRail
Thameslink South Wales & West Railway
Thames Trains
West Anglia Great Northern

The opening of the Channel Tunnel saw operations by Eurostar begin from London Waterloo to Paris and Brussels.

1996/97

The franchising process was implemented, with various private companies taking over the shadow franchises. Three were awarded to management buyouts. The Great Western Holdings' management also were awarded the North West Regional Railways franchise. The remainder were divided between a handful of major transport operators:

Franchise holder Train Operating Company Notes
Connex Connex South Central, Connex South Eastern
FirstBus First Great Eastern plus 24.5% shareholding in Great Western Holdings
GB Railways Anglia Railways
Go-Ahead Group Thames Trains Go-Ahead Group (65%), Management (35%)
Govia Thameslink
Great Western Holdings Great Western Trains, North Western Trains Management (51%), FirstBus (24.5%), 3i (24.5%)
M40 Trains Chiltern Railways Management (51%), John Laing (26%), 3i (23%)
MTL Merseyrail Electrics, Northern Spirit
National Express Central Trains, Gatwick Express, Midland Mainline, ScotRail, Silverlink
Prism Rail LTS Rail, Valley Lines, Wales & West, WAGN
Sea Containers GNER
Stagecoach Group Island Line Trains, South West Trains
Virgin Rail Group Virgin CrossCountry, Virgin Trains West Coast

In Northern Ireland, NIR stopped using its own branding on the Enterprise service between Belfast and Dublin when it purchased new rolling stock in conjunction with IÉ, instead launching Enterprise as a separate brand name.

1998

Great Western Holdings that operated Great Western Trains and North West Trains, became a 100% FirstGroup subsidiary when the 24.5% shareholder bought out its partners. The TOCs were renamed First Great Western and First North Western.

Virgin Group sold a 49% share in Virgin Rail Group that operated the CrossCountry and West Coast franchises to Stagecoach.

The completion of the rail link to Heathrow Airport led to Heathrow Express, an open-access operator outside the franchising system, beginning its services from London Paddington to Heathrow with operating rights until 2023.

2000

Prism Rail that operated the LTS Rail, Valley Lines Trains, Wales & West, and West Anglia Great Northern franchises was purchased by National Express resulting in the latter owning nine franchises. The first open access operator, Hull Trains, commenced running its services between King's Cross and Hull.

2001–2003

2001

In 2001, Connex, which had operated two franchises in the south-east of England, were replaced as the operator of the Network SouthCentral franchise by Govia, who began operating it under the name South Central.[3]

Also in 2001, a new franchise, the Wales & Borders franchise was created by the amalgamation of Valley Lines and the majority of services in Wales and the Borders held by Wales & West. The new franchise was initially operated under the name Wales & Borders. The remainder of Wales & West’s services in the west of England were renamed Wessex Trains.

2003

Connex, having already lost the South Central franchise in 2001, was removed as franchisee of the South Eastern franchise in 2003 on the grounds of poor financial management. It was replaced as the franchise holder by South Eastern Trains, a company wholly owned by the Strategic Rail Authority, which would operate the franchise until it could be tendered again. New franchise holders Arriva Trains Wales and Merseyrail began operating. FirstGroup purchased GB Railways which owned the Anglia Railways and Hull Trains businesses.

2004–2006

2004

A policy where the majority of services (both long-distance and commuter) from each London terminal would all be operated by the same franchise was partially enacted. In April 2004, One commenced operating the Greater Anglia franchise that combined the Anglia Railways and First Great Eastern franchises with the West Anglia Great Northern services radiating out from Liverpool Street. The remainder continuing to be operated as WAGN.[4] In the same month, Thames Trains was superseded by First Great Western Link.

In the North of England, prior to 2004 there were two regional franchises, the North East Regional franchise and the North West Regional franchise. In 2004, these were altered into the TransPennine franchise, for intercity services, and the Northern franchise, for local services that were awarded to First TransPennine Express and Northern Rail respectively. Some North West services were transferred to the Arriva Trains Wales franchise.

2005

A new operator, Heathrow Connect, jointly run by BAA and First Great Western, began operating stopping services between London Paddington and Heathrow Airport complementing the Heathrow Express.

2006

Three new integrated franchises began operating in April 2006:

2007–2010

2007

Further integrations occurred in 2007. The first of these was the South Western franchise; this merged the original South West Trains franchise with the Island Line Trains franchise on the Isle of Wight and began operating in February 2007 under the name South West Trains, with Island Line retained as a separate brand.

In November 2007, three new integrated franchises began operating:

In addition to these three, a further new operator, London Overground Rail Operations, took control of the routes operated by Silverlink in London, which were combined with the extended East London line in 2011. Services are controlled directly by Transport for London, with running of the trains themselves contracted to a private company as an operating concession. This is different from an ordinary franchise, as the train operator is not given control of the strategic aspects of the operation, such as pricing, timetabling and rolling stock procurement.

In December 2007, National Express East Coast took over the running of the InterCity East Coast franchise from GNER.[6] Grand Central also began operating iservices between London and Sunderland as an open access operator.

2008

In February 2008, One was re-branded by National Express as National Express East Anglia to bring it into line with the East Coast franchise.

In April 2008, Wrexham & Shropshire began operating open access services between Wrexham and London Marylebone.

In June 2008, the Gatwick Express franchise was integrated with the South Central franchise operated by Southern.

2009

The government announced that National Express East Coast would have their franchise to operate intercity services along the ECML terminated, with the franchise passing into the hands of public sector company Directly Operated Railways, which acted as the parent for East Coast.[7]

2010

Grand Central open-access services from London to Bradford began on 23 May 2010.[8]

2011–2017

2011

Owing to continuing losses, Wrexham & Shropshire ceased operating on 28 January 2011.[9]

2012

Abellio Greater Anglia began operating the Greater Anglia franchise on 5 February 2012.[10]

In September 2012, FirstGroup was awarded the right to operate the West Coast franchise which provoked a backlash from incumbent Virgin Trains. As a result of the Department for Transport having provided incorrect information during the bid process, the offer was withdrawn in October 2012 and £40 million of bid costs refunded.[11]

2014

In September 2014, Govia Thameslink Railway took over services formerly operated by First Capital Connect as part of the Thameslink, Southern and Great Northern franchise and branded them as Thameslink and Great Northern.[12]

2015

In March 2015, a Stagecoach and Virgin joint venture trading as Virgin Trains East Coast commenced operating the InterCity East Coast franchise.[13]

In April 2015, the ScotRail franchise was split with the Caledonian Sleeper services becoming a stand-alone franchise operated by Serco while the remaining services were take over by Abellio ScotRail.[14][15]

In May 2015, a number of metro routes run by Abellio Greater Anglia from London Liverpool Street were transferred to TfL to run as a concession similar to both London Overground and Crossrail (under the name, TfL Rail). The routes transferred were those to Shenfield, Enfield Town, Chingford and Cheshunt.[16]

2016

In April 2016, FirstGroup trading as TransPennine Express commenced operating the TransPennine Express in its own right, previously having done so in a joint venture with Keolis.[17] On the same date Arriva Rail North commenced operating the Northern franchise.

In November 2016, Arriva Rail London took over the London Overground concession from London Overground Rail Operations.[18]

2017

In March 2017, Abellio sold a 40% share in Abellio Greater Anglia to Mitsui.[19]

In August 2017, a FirstGroup/MTR joint venture trading as South Western Railway commenced operating the South Western franchise.[20]

In December 2017, an Abellio, East Japan Railway Company and Mitsui joint venture trading as West Midlands Trains will commence operating the West Midlands franchise.

Current TOCs

A collection of diagrams of many different TOCs in the United Kingdom

As of August 2017, there are 24 train operating companies.

Franchised

Open-access operators

Future TOCs

Franchised

In December 2017, West Midlands Trains will take over the West Midlands franchise from London Midland.[21]

In 2017, the DfT announced that the InterCity West Coast franchise will be replaced by the West Coast Partnership that will include High Speed 2 services.[22]

Open-access operators

East Coast Trains have been granted permission to operate services on the East Coast Main Line between London King's Cross and Edinburgh from May 2021.[23]

Railtours

The privatisation of British Rail allowed the introduction of open-access operators, in which companies, upon payment of a fee, could purchase individual slots on the mainline. This has led to the growth in companies offering charter trains, and to the railtour. Most railtour operators run services in part of the country; however, there are a handful that operate services nationwide. Usually, these will see a train made up of ex BR rolling stock pulled by a hired locomotive from one of the freight companies. Occasionally, a preserved ex BR locomotive that is certified to run on the mainline will be made available for such charters.

Sea links

A number of coastal railway stations in the United Kingdom serve to provide connections to ferry services to a number of destinations. Most of the ferry operators in these cases set their timetable to run in conjunction with the arrivals and departures of rail services from the stations serving the ferry terminals. A handful of these even offer integrated pricing for both rail and ferry travel – because the Island Line is part of the National Rail network, passengers can purchase tickets for travel to any of the stations on the Isle of Wight from any other station in Great Britain. This ticket also covers the cost of passage on the Wightlink catamaran from Portsmouth Harbour to Ryde Pier Head. It is also possible to purchase ferry inclusive tickets from any station in Great Britain to Cowes or East Cowes on the Isle of Wight using Red Funnel ferries, although there are no rail connections from these towns.

International operators

There are two main international services which operate on the railways in the United Kingdom:

A third service which is worth mentioning is Dutchflyer (GoLondon in the Netherlands). This is not a separate rail service in itself, as the others are, but a collaboration between Greater Anglia, Stena Line and Nederlandse Spoorwegen to provide an integrated rail/sea/rail service between eastern England (London Liverpool Street, Cambridge, Norwich) and The Netherlands (Amsterdam Centraal) using a single ticket.

A further international service is provided by Venice Simplon Orient Express. Although this is primarily a railtour operator, with special trains to various locations in the United Kingdom, it also operates the scheduled Orient Express service to destinations in Europe. This involves two separate trains; the British Pullman departs from London Victoria and terminates at Folkestone West, where passengers transfer by coach through the Channel Tunnel to Calais; at Gare de Calais-Ville, they then join the Orient Express which then calls at various destinations including Paris, Vienna, Innsbruck, Venice and Rome.

In other countries

The differentiation between train operating companies and railway infrastructure companies was enforced by European Union legislation and can be found in all EU member countries.

In Germany, train operating companies (Eisenbahnverkehrsunternehmen – EVU) are defined by General Railways Act 1993, s. 2(1) (Allgemeines Eisenbahngesetz (AEG), enacted 27 December 1993) as companies providing train services. They are distinct from Eisenbahninfrastrukturunternehmen (EIU), which own and maintain the railway infrastructure. While there are many private EVU, that have obtained regional franchises, only a handful of long-distance EVU exist (the largest by fare being DB Fernverkehr); the infrastructure is also almost completely owned by Deutsche Bahn subsidiaries.

See also

References

  1. ^ Investment in stations: a guide for promoters and developers, Network Rail, May 2011
  2. ^ http://www.parliament.uk/briefingpapers/commons/lib/research/briefings/snbt-01157.pdf
  3. ^ Connex loses rail franchise BBC News 24 October 2000
  4. ^ First Group loses out on rail franchise BBC News 22 December 2003
  5. ^ Virgin loses Cross Country rail BBC News 10 July 2007
  6. ^ National Express wins rail route BBC News 14 August 2007
  7. ^ East Coast rail change confirmed BBC News 5 November 2009
  8. ^ An historic journey to London with Grand Central West Riding Service Huddersfield Daily Examiner 20 May 2010
  9. ^ Wrexham-Shropshire-London direct rail link to end BBC News 26 January 2011
  10. ^ Abellio awarded Greater Anglia franchise Railway Gazette International 20 October 2011
  11. ^ "West Coast Main Line: Taxpayers 'at risk' in rail bid". BBC News. 9 October 2012. Retrieved 10 October 2012. 
  12. ^ Govia wins Thameslink rail franchise BBC News 23 May 2014
  13. ^ Stagecoach and Virgin win East Cost mainline rail franchise BBC News 27 November 2014
  14. ^ Serco wins franchise for Caledonian sleeper train service BBC News 28 May 2014
  15. ^ "Dutch firms wins ScotRail franchise from FirstGroup" BBC News 8 October 2014
  16. ^ "TfL seeks Crossrail operator". Railway Gazette International. 12 March 2013. Retrieved 15 March 2013. 
  17. ^ FirstGroup plc welcomes award of TransPennine Express rail franchise FirstGroup 9 December 2015
  18. ^ Arriva wins £1.5bn London Overground contract BBC News 18 March 2016
  19. ^ Abellio deal: Japanese firm Mitsui completes 40% Greater Anglia sale BBC News 21 March 2017
  20. ^ South Western Railway FirstGroup
  21. ^ West Midlands Trains announced as winning bidder for West Midlands franchise Abellio 10 August 2017
  22. ^ New West Coast rail franchise to run HS2 services BBC News 4 November 2016
  23. ^ First Group to run Edinburgh to London budget rail service BBC News 12 May 2016
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