Wednesday, 20 January 2010
Longer Franchise in Prospect
The Transport Secretary is proposing that future rail franchises, including the one that will replace National Express East Anglia, should run for at least 10 years with contracts of up to 22 years also on the cards. Longer franchises are designed to encourage the holder to invest more in the service they provide as they are more likely to see a return on their investment. Current franchises run for an average of seven years which is not seen as long enough to incentivise holders to invest appropriately.