Strategic Rail Authority

Future for Island Line announced
_______________________________________________________________

date 12 November 2002
source Strategic Rail Authority
type Press release

Stagecoach Group plc is to continue operating the Isle of Wight's rail franchise
until 2007 under a new deal agreed in principle with the Strategic Rail
Authority (SRA).

The new Island Line franchise will run from September 2003 to February 2007
and will be for the continued operation of the existing level of services
between Shanklin and Ryde. It follows the announcement last week that the
SRA had agreed with Stagecoach the principles of a new South West Trains
franchise, also until February 2007.

Nick Newton, the SRA's Chief Operating Officer, said:

"We are pleased to have secured an agreement for the operation of the Island
Line until 2007. From this sound base we can continue to explore long term
options with the Council, passenger groups and other key stakeholders on the
Island."

Graham Eccles, Executive Director of Stagecoach Group, said:

"We are delighted to have reached agreement in principle to retain the Island
Line franchise. The agreement includes funding provision from the SRA for
work necessary to keep the Island Line operating safely and efficiently for the
next four years. We look forward to working with the SRA and Island
stakeholders to find a suitable solution for the long term future of the line."

Notes to Editors:
1. Island Line is Britain's best performing railway, achieving 96.7% of
trains on time in the year to June 2002, and 92% of passengers
satisfied with their journey in the SRA's Spring 2002 National
Passenger Survey. It is also Britain's smallest franchise, operating on
8.5 miles of track with 800,000 passengers journeys per year.
2. The Line is also, proportionately, Britain's most highly subsidised rail
franchise, receiving 36.9 pence of public money per passenger
kilometre during 2001/2. In total it received £2.3 million subsidy from
the SRA in 2001/2002.
3. The Island Line runs from Shanklin to Ryde Pier Head, linking in with
ferry and hovercraft services to the Island from Portsmouth. The
current franchise, held by Stagecoach Holdings plc since October
1996, expires in September 2003, having been extended by 2 years
from its original term of 5 years.
4. The Secretary of State for Transport has granted the SRA approval
under Section 26 of the Railways Act 1993 (as amended) to enter into
single tender negotiations with Stagecoach Group plc towards a new
franchise.
5. Detailed negotiations on the new franchise will commence shortly.

Railhub Archive ::: 2002-11-12 SRA-001