The battle to keep the east coast line

Rising passenger numbers, millions of pounds of investment, high customer satisfaction and praise from the Prime Minister, you would think GNER was a certainty to retain its franchise.

But you will not see any complacency down at GNER headquarters at Station Rise.

For employees there, the hard work is only just beginning. GNER must defend its right to run services against the toughest of opposition - all of whom want to run their trains on Britain's flagship rail link, the East Coast Main Line.

That is not to say there is not a growing air of confidence that GNER will be given the mandate it craves, and a chance to create a rail service rivalling the world's best.

The competition has begun in earnest. At GNER, as at FirstGroup, Danish Railways and the Virgin/Stagecoach consortium, company chiefs are now drawing up detailed bids to take to the Strategic Rail Authority (SRA).

The prize is a seven-year franchise deal, starting on May 1, next year, with a three-year extension available if the winner meets stringent performance targets.

In its short eight-year life, GNER has come a long way. In 1996, the Government paid it £61.6 million in subsidies. In the last three years, GNER has handed the Government £78.2 million - a premium of

£1.42 for every passenger carried.

It is investing as well, currently spending £100 million on rebuilt, longer and more reliable trains; new and bigger car parks; modernised and safer stations and improved information for passengers - that is only part of the current franchise arrangements.

GNER runs more services and carries more passengers than when it started in 1996. Reliability has more than doubled.

It was first train operator to achieve Investor In People status and to have partnership agreements with all four rail trade unions. Last week, it was voted Britain's top transport operator at the Chartered Institute of Logistics & Transport's Annual Awards for Excellence.

You can see why Christopher Garnett, GNER's chief executive, believes that a new franchise is a just reward.

"I am totally confident that we will win a new franchise. The progress we've made in the first eight years provides the launch-pad to take services on the East Coast Main Line to new heights of reliability, quality and value for money," he said.

"Our ambition is the creation of a rail service to rival the best in the world. We will be fighting very hard for the opportunity to turn our vision into a reality.

"GNER is privileged to operate such an important public service on this flagship route and takes its responsibilities to the communities it serves very seriously.

"It has demonstrated, through good times and bad, that it is a responsible, credible and exemplary custodian with well-trained staff, a passion for high standards, a unique service ethos and a record of delivery."

So what can we expect in the future, should GNER be triumphant? One thing we will not see is new trains. GNER's High Speed Train (HST) fleet may be 29 years old, but the SRA's bidding specifications are clear - there will be no direct replacement in the East Coast franchise, but there may be a cascade order as a result of the Greater Western franchise which is up for grabs next year.

"Our challenge is to carry more passengers, adding extra trains at the right time and as far as track capacity allows," said Alan Hyde, GNER's corporate affairs manager.

"We want to keep service standards high, but we will have to do this more cost effectively, given the industry's funding constraints. We have a good reputation for service and the quality of our staff. Our strength is our people and how they are managed. Route reliability is still an issue and we continue to encourage Network Rail to make more improvements. We have developed a good railway and we want to make it even better."

A hectic time lies ahead. The SRA expects to announce a preferred bidder early next year, with the successful company running passenger services from May 2005.

That gives all the interested bidders only a matter of weeks to convince the SRA they have what it takes to win.

Mr Hyde said: "We are very pleased that the competition has started. We have consistently said there should be a longer franchise. We can provide value with the quality of our services and the value we give to the taxpayer.

"GNER has a good reputation and we work incredibly hard to ensure we deliver for passengers. But we are our own worst critic. There is always more to do.

"Reliability has improved but still needs to get better. If we won the franchise, we would run more services. We want to build on the success we have had and the relationships and partnerships we have built over the past eight years."

Should they win, the company has reiterated it will keep its headquarters in York. "We have always maintained that our ideal location is York. GNER is now part of the social and economic fabric of the city," Mr Hyde said.

"Our involvement is very deep rooted. Culturally, we support the arts and sponsor events, economically we contribute with the passengers that we carry, who spend their money in the city.

"York probably gets the best service, for a city of its size, of any in the country. We have a very effective partnership with City of York Council, the local Chamber of Commerce and other city partners. There is absolutely no suggestion that we would move our headquarters from York." More services, continuing investment and a company prepared to barter with Network Rail and the SRA to ensure passengers continue to receive a reliable, fast and pleasant service.

There are no pie-in-the-sky promises, only practical pledges - from a company with a track record of success. Mr Hyde said: "We have already demonstrated that we deliver. We are still a very young company. The journey has only just begun, we have a long way yet to go. But we are more than prepared and we are committed to delivering a better service for our passengers and a bright future for our staff."

Updated: 11:03 Monday, October 25, 2004