Final shortlist for Overground concession announced
http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984
"Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Interesting choice - nice to see MTR are in the running. National Express and Nedrailways are out. This creates an interesting potential situation if Go-Via win this *and* the West Midlands franchise as effectively the current Silverlink operation (plus some bits) will have transferred from Nat Ex to Go-Via. I rather hope MTR Laing get it as the MTR (in Hong Kong) is phenomenal in terms of its reliability, lack of incidents and good asset management. Laing are not without some credit as Chiltern seem to be considered to be one of the better franchises. If MTR can deliver the same sort of HK reliability on the Overground network then that will be some achievement and might put Network Rail under a bit of pressure! -- Paul C Admits to working for London Underground! |
Final shortlist for Overground concession announced
"Paul Corfield" wrote in message ... http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Interesting choice - nice to see MTR are in the running. National Express and Nedrailways are out. This creates an interesting potential situation if Go-Via win this *and* the West Midlands franchise as effectively the current Silverlink operation (plus some bits) will have transferred from Nat Ex to Go-Via. I rather hope MTR Laing get it as the MTR (in Hong Kong) is phenomenal in terms of its reliability, lack of incidents and good asset management. Laing are not without some credit as Chiltern seem to be considered to be one of the better franchises. If MTR can deliver the same sort of HK reliability on the Overground network then that will be some achievement and might put Network Rail under a bit of pressure! Go-Via are already running the services on the stretch that the extended ELL will operate over - and the rather limited hourly service up the WLL to Watford Junction... Could see some interesting through running if it was eventually or ever allowed! Agree its good to see MTR still in the mix, I think some of there earlier involvement has been in the wrong type of franchise, ie longer distance, when its metro type operations where their experience is. Paul |
Final shortlist for Overground concession announced
Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Pity there wasn't a bit more vision and willpower with the ELL. For a start the obvious continuation to Finsbury Park then take the line up the old northern heights branch via highgate high level to terminate at east finchley and interchange with the northern line. Meanwhile , back in the real world... B2003 |
Final shortlist for Overground concession announced
Boltar wrote:
Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to get that sort of drive if TfL ran it themselves. Meanwhile, TfL can concentrate on other essential deliverables such as full integration with other transport networks. Pity there wasn't a bit more vision and willpower with the ELL. For a start the obvious continuation to Finsbury Park then take the line up the old northern heights branch via highgate high level to terminate at east finchley and interchange with the northern line. There's no point asking for many billions to build a mammoth project and scaring off the Treasury when you are much more likely to get a smaller amount to build a smaller project, show what good value for money it is and so coax the cheque-writers in to give you more. If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. -- Dave Arquati www.alwaystouchout.com - Transport projects in London |
Final shortlist for Overground concession announced
On Fri, 15 Dec 2006, Dave Arquati wrote:
Boltar wrote: Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to get that sort of drive if TfL ran it themselves. Because, as we well know, everyone who works for TfL is an incompetent, unprofessional, disinterested jobsworth who has no interest in actually providing a decent service to the public. Oh, no, hang on a minute ... Pity there wasn't a bit more vision and willpower with the ELL. If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. Three cheers for the DLR! And one day, possibly, three car trains! tom -- Once you notice that something doesn't seem to have all the necessary parts to enable its functions, it is going to mildly bug you until you figure it out. -- John Rowland |
Final shortlist for Overground concession announced
On Sat, 16 Dec 2006 02:50:31 +0000, Tom Anderson
wrote: On Fri, 15 Dec 2006, Dave Arquati wrote: Boltar wrote: Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to get that sort of drive if TfL ran it themselves. I think I can guess what the response to this will be. Because, as we well know, everyone who works for TfL is an incompetent, unprofessional, disinterested jobsworth who has no interest in actually providing a decent service to the public. waves Oh, no, hang on a minute ... What did I just do? Pity there wasn't a bit more vision and willpower with the ELL. If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. Three cheers for the DLR! And one day, possibly, three car trains! I used it the other evening from Bank and was a bit surprised how busy it was with people heading away from Bank. I expected it to be busier coming into Bank but I suppose with too large centres of economic activity it makes sense that there will be heavy flows each way. Even later at 21.30 trains to Lewisham were standing room only. The service was fine but the trains seemed to be jerkier and to sway more on the tracks than I recall. -- Paul C Admits to working for London Underground! |
Final shortlist for Overground concession announced
Dave Arquati wrote: Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the Apart from the fact that they wouldn't require having to make a profit out of the service , unlike any company that does run it. Unless they have all been struck by the christmas spirit and will do it all for no comeback. DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to I suspect its rather easy to run a completely isolated computer controller light railway which pretty much runs itself. Quite another to run a semi-metro system that will run on network rail lines and be subject to all the usual cockups and delays. If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. I think that says it all really. If they'd built more originally it would have probably cost somewhat less in real terms. And don't forget the DLR could probably no longer cope with the daily traffic to canary wharf. If the JLE hadn't been built it would probably be falling to bits under the strain right now. The DLR was only ever a half hearted cut price token gesture from the Thatcher government who wanted to be seen to be doing something but pay bugger all for it. If they had been really serious about regenerating Docklands as opposed to just hoping for the best they'd have built a tube line there from the start. B2003 |
Final shortlist for Overground concession announced
..Boltar" wrote in message ps.com... Dave Arquati wrote: If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. I think that says it all really. If they'd built more originally it would have probably cost somewhat less in real terms. But even in countries that are pro rail such schemes are developed piecemeal, it's the way that finance works. tim |
Final shortlist for Overground concession announced
Boltar wrote:
Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the Apart from the fact that they wouldn't require having to make a profit out of the service , unlike any company that does run it. Unless they have all been struck by the christmas spirit and will do it all for no comeback. The whole point about tendering is that demonstrably, in real life, the efficiency savings delivered by private contractors compared to state-owned organisations are greater than the margins that the contractors command. This is why bins are emptied by Veola and prisoners escorted by Serco. It's also why government organisations generally buy biros from Bic and computers from Dell rather than having a special government biro and PC factory. PPP is a different story, with a skewd allocation of risk and an inefficient capital structure, but this isn't relevant to the London Rail operational contract (interestingly, from what I've read about the deal it seems that TfL is buying the new rolling stock directly from Bombardier rather than it being owned by a ROSCO. This is definitely a Good Thing.) -- John Band john at johnband dot org www.johnband.org |
Final shortlist for Overground concession announced
Boltar wrote:
Dave Arquati wrote: Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the Apart from the fact that they wouldn't require having to make a profit out of the service , unlike any company that does run it. Unless they have all been struck by the christmas spirit and will do it all for no comeback. The whole point of a penalty/incentive regime is that the need to make a profit forces the concessionaire to deliver high performance - because if they don't, they will lose money and eventually have to give way to a more efficient company. The difficulty running the service publicly is precisely the one you just pointed out for a private company. Will the public sector employees deliver a high performance service just because they have a warm, fuzzy feeling about working for the public? Some of them may, but certainly not all. On the other hand, the concessionaire will have to run a high-performance service because if they don't, they will be penalised. DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to I suspect its rather easy to run a completely isolated computer controller light railway which pretty much runs itself. Quite another to run a semi-metro system that will run on network rail lines and be subject to all the usual cockups and delays. Accepted, but DLR services do operate seamlessly across infrastructure owned by three different organisations (one public and two private), and maintained by three different private organisations. Overground services will operate on infrastructure owned and maintained by a single (semi-public) company. If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. I think that says it all really. If they'd built more originally it would have probably cost somewhat less in real terms. And don't forget the DLR could probably no longer cope with the daily traffic to canary wharf. If the JLE hadn't been built it would probably be falling to bits under the strain right now. The DLR was only ever a half hearted cut price token gesture from the Thatcher government who wanted to be seen to be doing something but pay bugger all for it. If they had been really serious about regenerating Docklands as opposed to just hoping for the best they'd have built a tube line there from the start. Hindsight is a wonderful thing. Given the situation in the area in the early 80s, it would have been irresponsible to gamble many hundreds of millions of pounds of public money at once on a new Tube line and hope that it brought development. As it was, the much smaller (£77m) initial investment in the DLR *did* bring Canary Wharf - a smaller risk for a big reward. The JLE got built because the DLR brought the traffic for it. In fact, the JLE did *not* have a favourable cost-benefit ratio when it was given the green light - it was something like 0.92. That's with Canary Wharf already well-progressed. Imagine what the situation would have looked like in 1985. -- Dave Arquati www.alwaystouchout.com - Transport projects in London |
Final shortlist for Overground concession announced
tim..... wrote: But even in countries that are pro rail such schemes are developed piecemeal, it's the way that finance works. Not always. Look at the TGV system in france. It was a large scale project from the start, not some penny pinching piecemeal attempt of building a few miles of fast track to start off with then leaving it for a decade and have endless "reviews" from quangos which is what any British government would have probably done. B2003 |
Final shortlist for Overground concession announced
Tom Anderson wrote:
On Fri, 15 Dec 2006, Dave Arquati wrote: Boltar wrote: Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to get that sort of drive if TfL ran it themselves. Because, as we well know, everyone who works for TfL is an incompetent, unprofessional, disinterested jobsworth who has no interest in actually providing a decent service to the public. Oh, no, hang on a minute ... Hmm, you abused my point a bit there :-) I should clarify - TfL could operate an adequate service on London Overground. They could even operate a high-quality one if they tried hard enough (shock horror). However, the incentivised concessionaire will *have* to deliver a high-quality service if it wants to survive. The adage comes to mind about the rabbit escaping from the fox, because the rabbit is running for his life whereas the fox is only running for his dinner. Pity there wasn't a bit more vision and willpower with the ELL. If, in the 1980s, someone had asked for £1.5bn to build a 40km light railway network throughout the derelict docklands of East London, they would have been laughed out of the Treasury - but by 2012, that will be the investment in and scale of the DLR. Three cheers for the DLR! And one day, possibly, three car trains! tom -- Dave Arquati www.alwaystouchout.com - Transport projects in London |
Final shortlist for Overground concession announced
On Sat, 16 Dec 2006 15:49:03 +0000, Dave Arquati wrote:
The whole point of a penalty/incentive regime is that the need to make a profit forces the concessionaire to deliver high performance - because if they don't, they will lose money and eventually have to give way to a more efficient company. The difficulty running the service publicly is precisely the one you just pointed out for a private company. Will the public sector employees deliver a high performance service just because they have a warm, fuzzy feeling about working for the public? Some of them may, but certainly not all. On the other hand, the concessionaire will have to run a high-performance service because if they don't, they will be penalised. There have been plenty of cases of companies deciding it's more profitable to make substantial cutbacks and pay the penalties for poor performance than it is to perform well. Whilst it's true that when the contract expires the company may have to give way to a better performing one, you're underestimating the preference for short term profit over long term viability - particulary with train operating companies, which own very few assets and make very little investment (e.g. all their trains are owned by someone else and leased, and a full complement of staff is often TUPE'd in ready-made) and can be brought into and out of existence with relative ease. I don't buy the maxim that private companies always run things better than the public sector. There are plenty of counterexamples (Railtrack, Connex, Multiplex, etc). At the end of the day there are good and bad private companies, and good and bad public entities. TfL has always struck me as a good one (though perhaps I'm mistaken ;), and I'd be more confident if they were running the Overground rather than potentially a bunch of cowboys. |
Final shortlist for Overground concession announced
On Sun, 17 Dec 2006 14:48:13 +0000, asdf
wrote: On Sat, 16 Dec 2006 15:49:03 +0000, Dave Arquati wrote: The whole point of a penalty/incentive regime is that the need to make a profit forces the concessionaire to deliver high performance - because if they don't, they will lose money and eventually have to give way to a more efficient company. The difficulty running the service publicly is precisely the one you just pointed out for a private company. Will the public sector employees deliver a high performance service just because they have a warm, fuzzy feeling about working for the public? Some of them may, but certainly not all. On the other hand, the concessionaire will have to run a high-performance service because if they don't, they will be penalised. There have been plenty of cases of companies deciding it's more profitable to make substantial cutbacks and pay the penalties for poor performance than it is to perform well. Whilst it's true that when the contract expires the company may have to give way to a better performing one, you're underestimating the preference for short term profit over long term viability - particulary with train operating companies, which own very few assets and make very little investment (e.g. all their trains are owned by someone else and leased, and a full complement of staff is often TUPE'd in ready-made) and can be brought into and out of existence with relative ease. I would tend to agree with these comments. There is no such thing as the perfect contract and inevitably circumstances will arise that will test the arrangements in ways neither party could envisage. While the general thrust of a contractual arrangement may very well deliver good results these may not be sustained over time but you only find out when it is too late (unless you have some very effective measurement and surveillance processes in place). It is all too easy for incentives to be wrongly pitched so that sub optimal decisions end up being taken which either result in appalling short term performance and renegotiation or apparent good short term performance but with an asset base or workforce that is good for nothing long term. The only entity that really suffers is the customer and not the supplier. The other importance aspect is the age of the infrastructure. DLR and Tramlink are both relatively new and have modern systems in place to track asset condition and performance. LU and Network Rail have a backlog of decades of degradation, lack of knowledge and under investment to deal with. It makes a lot of difference in overall performance terms and how well a contract works - "risk" is easier to manage when knowledge is better. I don't buy the maxim that private companies always run things better than the public sector. There are plenty of counterexamples (Railtrack, Connex, Multiplex, etc). At the end of the day there are good and bad private companies, and good and bad public entities. TfL has always struck me as a good one (though perhaps I'm mistaken ;), and I'd be more confident if they were running the Overground rather than potentially a bunch of cowboys. Again I agree - there are good and bad in both sectors. With the Overground operation there are a few factors that I would be concerned about if I was involved in trying to run the new arrangements. a) disputes between the concessionaire and TfL over rolling stock performance / reliability. b) the role of Network Rail who are supplying the track and signals. c) the cultural inheritance of taking over what are in almost all cases "cinderella" parts of the network and the need to meld a new operational culture and deal with the pay and pensions issues effectively. d) the impact of the political importance of the Overground network needing to "work" almost from day one. This will undoubtedly be exploited by a number of parties and could cause all sorts of issues. I'm really keen for the whole project to work but I can see it being a bit of a bumpy ride. -- Paul C Admits to working for London Underground! |
Final shortlist for Overground concession announced
On Sat, 16 Dec 2006, Dave Arquati wrote:
Tom Anderson wrote: On Fri, 15 Dec 2006, Dave Arquati wrote: Boltar wrote: Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to get that sort of drive if TfL ran it themselves. Because, as we well know, everyone who works for TfL is an incompetent, unprofessional, disinterested jobsworth who has no interest in actually providing a decent service to the public. Oh, no, hang on a minute ... Hmm, you abused my point a bit there :-) I should clarify - TfL could operate an adequate service on London Overground. They could even operate a high-quality one if they tried hard enough (shock horror). However, the incentivised concessionaire will *have* to deliver a high-quality service if it wants to survive. I understand the theory, but am concerned about the practice - as the old saying goes, in theory, theory and practice are the same, but in practice, they're not. Yes, the DLR and Tramlink work well in private hands, as do some NR TOCs, but there are plenty of bits of privatised or semi-privatised transport infrastructure that emphatically do not. I don't feel like we really have a good handle on what it is that makes some cases work and others not (what was so different about Chiltern and Connex?), which makes me wary of a rush to put the NLR into private hands. I suppose neither of us are saying that it won't work either way, just that it could work the other way! tom -- THE DRUMMER FROM DEF LEPPARD'S ONLY GOT ONE ARM! |
Final shortlist for Overground concession announced
"Tom Anderson" wrote in message .li... I understand the theory, but am concerned about the practice - as the old saying goes, in theory, theory and practice are the same, but in practice, they're not. Yes, the DLR and Tramlink work well in private hands, as do some NR TOCs, but there are plenty of bits of privatised or semi-privatised transport infrastructure that emphatically do not. I don't feel like we really have a good handle on what it is that makes some cases work and others not (what was so different about Chiltern and Connex?), which makes me wary of a rush to put the NLR into private hands. I suppose neither of us are saying that it won't work either way, just that it could work the other way! Do you not mean 'a rush to put the ELL into private hands'? The existing parts of the NLR (the WLL and NLL) already are... Paul S |
Final shortlist for Overground concession announced
Tom Anderson wrote:
On Sat, 16 Dec 2006, Dave Arquati wrote: Tom Anderson wrote: On Fri, 15 Dec 2006, Dave Arquati wrote: Boltar wrote: Paul Corfield wrote: http://www.tfl.gov.uk/tfl/press-cent...t.asp?prID=984 "Transport for London (TfL) has announced that MTR Laing and Go-Via have been selected to submit a 'best and final offer' for the contract to run London Overground services on the integrated North and East London Railways, under the management of TfL." Why can't TfL just run it themselves? Why does it have to be sub contracted out? Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the DLR, which has a phenomenal track record, and it allows a performance incentive and penalty regime to be installed so that the concessionnaire is continually motivated in the right direction. You'd be unlikely to get that sort of drive if TfL ran it themselves. Because, as we well know, everyone who works for TfL is an incompetent, unprofessional, disinterested jobsworth who has no interest in actually providing a decent service to the public. Oh, no, hang on a minute ... Hmm, you abused my point a bit there :-) I should clarify - TfL could operate an adequate service on London Overground. They could even operate a high-quality one if they tried hard enough (shock horror). However, the incentivised concessionaire will *have* to deliver a high-quality service if it wants to survive. I understand the theory, but am concerned about the practice - as the old saying goes, in theory, theory and practice are the same, but in practice, they're not. Yes, the DLR and Tramlink work well in private hands, as do some NR TOCs, but there are plenty of bits of privatised or semi-privatised transport infrastructure that emphatically do not. I don't feel like we really have a good handle on what it is that makes some cases work and others not (what was so different about Chiltern and Connex?), which makes me wary of a rush to put the NLR into private hands. I suppose neither of us are saying that it won't work either way, just that it could work the other way! I'll accept those odds - we'll never be wrong then! -- Dave Arquati www.alwaystouchout.com - Transport projects in London |
Final shortlist for Overground concession announced
On Sun, 17 Dec 2006, Paul Scott wrote:
"Tom Anderson" wrote in message .li... I don't feel like we really have a good handle on what it is that makes some cases work and others not (what was so different about Chiltern and Connex?), which makes me wary of a rush to put the NLR into private hands. Do you not mean 'a rush to put the ELL into private hands'? The existing parts of the NLR (the WLL and NLL) already are... I suppose i really mean "the rush to put he NLR back into private hands (those of a concessionaire) immediately after having wrested it into public hands (those of TfL) from the private hands (of Silverlink) into which it was placed after having been pried from the cold, dead public hands of BR (which of course snatched it from the private hands of the LMSR in 1947 ...)". tom -- I do not think we will have to wait for long. |
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