German Rail Considers ScotRail Bid
January 13, 2003
Germany’s national railway says it is examining whether to bid to takeover Scotland’s passenger train franchise. The British train authority, however, is already reckoning with DB’s offer, according to the German financial newspaper Handelsblatt. It would be the company’s first foreign venture.
“It’s true that we’re considering whether to make an offer,” confirmed Deutsche Bahn (DB) spokesman Gelfo Krüger. After DB’s bid to take over a rail franchise in Denmark “narrowly missed,” the company remains keen on expanding abroad. “Basically we’re interested in [acquiring] foreign holdings,” Krüger told DW-WORLD.
In October 2002 Britain’s Strategic Rail Authority (SRA), which is responsible for managing passenger franchises, opened the competition for the license to all Scottish train routes. The current franchise, held by ScotRail, expires on May 31, 2004. ScotRail’s successor will run Scottish train services for a period of 15 years, according to the SRA.
The rail authority is expecting bids from ScotRail, Deutsche Bahn, First Group, the French Connex Group, GB Railways, the British Arriva, and the French SNCF, as well as companies from Denmark and the Netherlands, Handelsblatt newspaper reported on Friday.
Scottish trains transport 63 million passengers yearly. After the Greater London area, the Scottish franchise covers the largest area in Britain. The current franchise holder is known in Scotland for its poor service and tardiness.
Cheaper by taxi
ScotRail, a National Express Group subsidiary, has also been recording losses with the franchise. It blames the poor returns on Scotland’s run-down tracks, according to Handelsblatt newspaper.
Long stretches in the Highlands, in particular, contribute to the problems. “To be honest, it would be cheaper to take people back and forth by taxi,” a National Express Group spokeswoman told the German paper.
In early 2004 nearly 30 passenger rail franchises will expire in England, the first large round of new franchises since the British rail system was privatized in the early 1990s.
Though slated for privatization, Deutsche Bahn is still a state owned enterprise.