Nationalised rail operator boosts profits and revenue

Transport Correspondent

Friday 28 September 2012

THE Government-owned rail firm which runs services between London and Edinburgh has seen an increase in profits and passenger satisfaction levels.

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DAMIEN HENDERSON Transport Correspondent

East Coast, which took over from National Express in 2009 under a temporary re-nationalisation of the flagship East Coast Main Line, recorded a 7% increase in profit to £7.1 million in the 12 months to March, according to accounts published by its parent company, Directly Operated Railways (DOR).

DOR is currently poised to take over the running of West Coast train services on a temporary basis if a legal wrangle between Virgin Trains and the Department for Transport (DfT) is not resolved by December 9.Its apparently healthy financial performance prompted renewed calls from the RMT rail union for nationalisation of both East and West Coast routes to be made permanent. However, DOR admitted East Coast, which operates services from London King's Cross to Edinburgh, Aberdeen and Inverness, was still struggling with "market conditions". It saw a 3% growth in revenue from passengers last year, which DOR said was behind that of rival train firms.The company, which is due to handover services to a private rail operator at the end of 2013, was also plagued by performance problems last year, caused by a combination of infrastructure failures on the route, disruption from flooding and a high number of deaths on the line. These have improved more recently, with punctuality figures published yesterday by track operator Network Rail showing 93% of East Coast trains were classed as on time in the four weeks to August 19, up from 87% during the same period last year.A national survey of passengers in Spring recorded an 89% satisfaction level, up two percentage points on the previous year.The accounts show East Coast paid a £183.6m "premium" payment to the DfT in 2011/12 in return for operating the service. National Express, which handed the keys back to the DfT after struggling to pay its premium payments, was due to have paid a £228m dividend to the taxpayer in 2011/12.Bob Crow, general secretary of the Rail Maritime and Transport union, said: "These figures show a publicly-owned train operator can run services without robbing the taxpayer and without ripping off huge private profits and dividends. "Every single penny made by DOR is reinvested in services and that is why they should be handed the west coast route as an alternative to the current franchise madness. Intercity trains on the West Coast Main Line are due to be taken over by Aberdeen-based First Group on December 9.

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Nationalised rail operator boosts profits and revenue

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