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28 - Mar - 2017

Chinese Firm MTR to Take Over Operation of South West Trains

 

 

Hong Kong state-owned metro operator MTR and FirstGroup are to take over the running of Britain’s largest commuter networks, South West Trains. The companies struck a 7-year deal with the government to take charge of the network’s operations, a move that has angered unions.

MTR will run the franchise from August, with a promise to deliver faster and more frequent services across Southern England to and from London Waterloo .They will also operate new trains and timetables with 20% more seats during the morning peak hours.

Terms of the deal reveal that MTR will pay £2.6bn in premiums over the next seven years, £1.2bn of which will be reinvested in the railways.

The operator will take over from Stagecoach, which has been running the South West Trains since 1996, when the UK rail network was privatized.

The Rail, Maritime and Transport (RMT) union claims the Chinese, and Hong Kong majority owned company is out to exploit the British taxpayer.

Mick Cash, general secretary of the RMT, warned that the deal meant 75% of the UK rail routes would soon be operated by state-owned foreign companies

 “Once again the government has refused to consider the public sector option for a major rail franchise and instead it’s a foreign state operator, in this case the Chinese state, which is set to make a killing at the British taxpayers’ expense,” he said.

 “It is, frankly, ludicrous that the Tories are continuing with the ‘any state but the British state’ policy which has plundered our railways for over two decades.”

The transport secretary, Chris Grayling, said: “First MTR South Western Trains will deliver the improvements that people tell us they want right across the South Western franchise area, from Bristol and Exeter, to Southampton and Portsmouth, to Reading, Windsor and London.

“We are delivering the biggest rail modernisation programme for over a century and this franchise will deliver real changes for passengers, who can look forward to modern trains, faster journeys and a more reliable service.”

MTR joins the German, French, Italian and the Dutch national rail operators running private franchises in the UK.

By Airport Pickups London