The ScotRail passenger rail franchise is one of the biggest contracts let by Scottish Ministers, worth around £2.5 billion, and is managed by Transport Scotland. The contract was awarded to FirstGroup plc, operating as First ScotRail Limited, in August 2004.
What is a rail franchise?
Glasgow Queen Street Station
Rail franchising in Great Britain was created by the Railways Act 1993. Franchising is the mechanism by which Scottish Ministers secure rail passenger services. This allows a private operator to provide rail services on the Scottish rail network on behalf of the Scottish Government.
Under the terms of the original franchise agreement there was an option to extend by three years. The extension to 2014 recognises the success of First ScotRail and its achievements in delivering greatly improved levels of performance.
Benefits to passengers
The franchise extension award brought a number of benefits for passengers through the return to government of more than £73m. This money is being reinvested in the railways to pay for 28 exciting new initiatives and projects, including the Stations Community Regeneration Fund, which will see service enhancements and other improvements at stations and on trains.
As part of its franchise bid, First ScotRail committed to spending an additional £40m - of which over £30m has already been spent - to enhance frontline facilities over the initial seven years of the franchise. This includes a £10m Station Improvement Plan to provide shelters, waiting rooms, toilets and telephones at stations, and £3.5m to improve information and communication links for passengers at all stations.
First ScotRail has also fulfilled its commitment to provide secure cycle facilities at all stations in Scotland and continues to seek new external funding sources to improve current facilities. It has published a new Connections Guide on its website and at ticket offices which aims to promote transport integration, including the carriage of cycles on trains. Funding was also provided in 2007 by Transport Scotland as part of a £9.2 million train refurbishment programme to increase cycle spaces on 25 Class 158 two carriage trains based in Inverness.
One of the more visible benefits of extending the ScotRail franchise is a fresh look for all of Scotland's stations and trains. The ScotRail brand is a dynamic representation of the Saltire, a symbol of Scotland that is recognised around the world.
Extending the First ScotRail franchise provides continuity for the ongoing development of Scotland's rail services and ensures continued improvement in performance. We monitor the franchisee's quality of service through the Service Quality Incentive Regime (SQUIRE), a customer-focused scheme which measures the quality of facilities at stations and on trains.
In addition, the franchise agreement includes a method of measuring the reliability and punctuality of train services.
The decision making process
In order to gain maximum benefit from the initiatives contained in the Franchise Amendment Agreement, we carried out a formal consultation exercise with stakeholders on the best way to implement the schemes and how best the £73 million secured for further services should be spent.
We hold regular meetings with First ScotRail to discuss franchise performance and minutes of these meetings are available.
All documents relating to the ScotRail franchise agreement, including the guidelines for the new ScotRail brand and the SQUIRE service schedules, can be found in the Public Register.
