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Trains drop £40 million lawsuit against government as new procurement process is announced

28 Mar 2013 12:00 AM | Anonymous

Four major UK train operators drop lawsuits ranging up to £40 million against the government, for the failed procurement process for the Great Western rail franchise, which resulted in the bidding operators losing up to £10 million from the submission process.

Train operators National Express, FirstGroup, Arriva and Stagecoach placed lawsuits at the start of March, with a delay in proceedings after the operators agreed to negotiate further with the Department for Transport.

The announcement of the termination of the legal action comes in close proximity to Transport Secretary Patrick McLoughlin’s announcement of extensions to 12 rail franchises, and the creation of a new bidding process for the East Coast rail franchise.

One of the rail operators, National Express, is currently in negotiation with the government over an extension to its contract for the running of its c2c London train contract. The company announced a range of successful bids for contracts including the running of London coach services to Luton airport.

The rail operators have so far not provided a reason for the ending of their legal action.

Government places East Coast rail line up for bid

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