RAIL services between Grantham and London could be operated by Keolis/Eurostar East Coast Ltd in future after they were tipped as front-runners to win the East Coast rail franchise.
The bid by the French Government-controlled firm is expected to be successful.
The value of First Group’s shares has fallen by £150 million, while Stagecoach has seen £33 million wiped from the value of its shares.
East Coast Trains Ltd (First Group plc), Keolis/Eurostar and Inter City Railways Limited (Stagecoach and Virgin) are each competing for the eight or nine year deal from next March.
The winner, expected to be revealed this week, is set to improve services.
A critic of the re-privatisation of the East Coast mainline, Edinburgh East MP Sheila Gilmore, said: “Ironically if the contract is awarded to Keolis – which is largely owned by the French Government – ticket revenue may well be reinvested in improved services.
“Unfortunately these will be services between places like Paris and Lyon or Marseilles and Monaco, rather than Edinburgh and London.”
The criteria for whoever wins the race includes the continuation of at least one direct return service from Lincoln to London.
However, the Government expects them to do more and invited proposals for “enhanced services” between the destinations.
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