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Stagecoach Group plc (LSE:SGC) marked history in the British rail industry by entering into an agreement with Network Rail Infrastructure Limited to provide rail services in the south and southwest of England, as disclosed Monday, 30th April.
This is the company’s second collaboration with Network Rail, as both companies operate the Wessex Integrated Control Centre at London Waterloo.
“This marks a new phase in the evolution of Network Rail,” said David Higgins, Network Rail’s Chief Executive, adding that the undertaking is part of the company’s strategy of “empowering our frontline managers to run the railway more effectively and forging closer working relationships with our customers, the train operators.”
Rationale and Purpose
The alliance is in line with the need to “reduce inefficiencies in the UK rail” indicated in the 2011 McNulty Report and campaign for close cooperation between rail operators and infrastructure owners outlined in the British Government’s Command Paper of 2012.
The alliance, which went live on Sunday, April 29th, aims to “cut delays for passengers, provide better customer service, deliver more effective management of disruption, and improve the efficiency of the railway through more collaborative working and better decision-making.”
To achieve these objectives, the alliance will have a single senior joint management team responsible for trains on the Wessex route operating out of London Waterloo station.
“The alliance will have responsibility for the safe, reliable and punctual operation of the Wessex network and SSWT services; maintenance of the Wessex infrastructure assets; maintenance, cleaning and servicing of the SSWT train fleet; and the operation and maintenance of all stations on the Wessex network,” Stagecoach’s statement read.
CEO Comments
Commenting on the recent undertaking, Sir Brian Souter, Chief Executive of Stagecoach plc said:
“This new model is a real opportunity to deliver change that will benefit both passengers and taxpayers and support our objective of growing the railway.”
“In addition, by working more closely with Network Rail than ever before, and with aligned incentives, we can deliver a more customer-focused and more efficient railway for the long-term.”
Company Spotlight
Established in 1980 with just two buses, Stagecoach Group plc now operates rail, coach, bus, and tram services in the United Kingdom, United States, and Canada. The company is one of the largest bus and coach operator and a major rail operator in Britain.
Quoted on the main market of the London Stock Exchange, Stagecoach shares traded 2.12% lower than the last day’s close at 11:00 GMT, following the announcement.
References
↑ Company Timeline
↑ Stagecoach Group Press Statement
↑ Company History
↑ Company Overview
