Aberdeen transport giant FirstGroup is launching a bid to stop the government barring private train companies from continuing to operate on its renationalised railways.

The move was prompted by comments from new transport secretary Heidi Alexander who called for the rail regulator to think twice about granting "open access" licences, giving private companies the right to run trains where there are gaps in the timetable to certain towns and cities.

Now, The Times reports, FirstGroup, which operates Hull Trains and Lumo, has vowed to lead a campaign in favour or more open access, not less.

Steve Montgomery, managing director of FirstGroup’s rail services, said: “Data demonstrates open access grows the railway overall.”

“By offering competitive fares at alternative times and stopping at under-served destinations, open access inspires more people to use trains rather than cars and planes.”

In a letter to Declan Collier, chairman of the Office of Rail and Road, transport secretary Alexander said: “There is a balance to be struck to ensure the benefits provided by open access operators outweigh the impacts they have on taxpayers and the ability to operate the network efficiently … such as the level of revenue they can abstract from contracted services and the associated implications for taxpayers.”

She said new open access services would put “additional pressures" on "already constrained network capacity”, adding: “I wish to see the impacts on the taxpayer and … potential congestion on the network given primacy when considering open access applications.”

FTSE 100

The UK's flagship share index, the FTSE 100, was up 7-points at 8,512 shortly after opening this morning.

Brent crude oil futures were down 0.28%, trading at $80.51 a barrel.

Companies reporting today

BHP Group

Operations Update


More like this…

View all