Race to run Tyneside's Metro down to final two

Oct 3 2009 by Adrian Pearson, The Journal

TRAIN bosses have placed a troubled German rail company alongside an in-house bid as the race to run the Metro comes down to the final two.

German railway group DB Regio, which operates trains in the UK, is bidding to run the Metro as part of a £300m funding kick-start for the aging train system.

DB’s parent company is at the centre of a long-running safety row in Berlin, with large parts of the city’s fleet recently grounded by rail regulators.

Last month, Berlin’s transport minister cut payments to Deutsche Bahn city operator after growing fed up with their performance.

The problems began after an investigation into a train derailment in Germany last May revealed strict safety standards were not being met.

DB Regio, a subsidiary of Deutsche Bahn, owns Chiltern Railways, which is rated as one of the most punctual in the UK.

Metro operators Nexus has insisted that “both remaining bidders have met or exceeded all the criteria we have set down”.

The selection process was forced on the region as a condition for Government investment, though the train system could remain as it is if the in-house Nexus bid is successful.

If not trains will be run by DB Regio, though the infrastructure will remain in public hands.

Serco-Ned Railways, which owns Northern Rail, was not chosen as preferred bidder, and a Hong Kong based company dropped out at an earlier stage.

Metro director Mick Carbro, who is heading up the in-house bid, said: “I am delighted to confirm that we have been shortlisted in the final stages of the concession process, which represents a tremendous achievement by the in-house bid team.

“We will now work very hard during the Revise and Confirm stage to ensure our bid offers the best value for money for the taxpayer and creates a step change in customer service and performance, without sacrificing safety or reliability.

“We believe our bid offers the ideal balance between innovation and hands-on experience to keep the future operations of Metro within the public sector.”

Ken Mackay, director of rail and infrastructure at Nexus, said: “Both bidders could offer a very high standard of public service in both price and quality. We will now seek to find the ‘best of the best’ by asking each to further revise and confirm their proposals.”

But last night Vicki Gilbert, chair of the Keep Metro Public campaign, warned that “voters are not happy” with the “privatisation” process.

She added: “It is not to late for a complete U-turn. We do not want to see privateers come in and make a profit out of people living in Tyne and Wear.

“We are extremely angry that councillors in the five boroughs are not doing anything to stop this.”

Bernard Garner, Director General of Nexus, said: “We can be satisfied that whichever bidder is successful, Nexus and our contractor will deliver an improved service for passengers which coupled with the £300m conditionally offered by Government will secure Metro’s future for decades to come.”

The two bidders will now be asked to revise and confirm their detailed tenders.

A single preferred bidder is expected to be named by Nexus in January 2010 ahead of the concession start date.

DB Region were unavailable for comment last night.