Enhanced performance incentives in new 7½ year concession
Transport for London intends to award the next operating concession for the London Overground network to Arriva Rail London Ltd. The £1.5 billion deal will run for 7½ years from November 2016, with an option to extend for up to two years.
The concession is currently held by a joint venture between MTR and Arriva, operating under the name London Overground Rail Operations Ltd (LOROL). MTR also bid separately for the new deal, along with LoKeGo Limited (a joint venture between Keolis and Go-Ahead) and Metroline Rail Limited.
TfL says that the new concession will see some routes running for longer and new services on Boxing Day. The operator will also be responsible for modernising stations, delivering more frequent services on the North London line and introducing the new fleet of 45 Bombardier-built Class 710 Aventra EMUs on the West Anglia and Gospel Oak to Barking routes in 2018.
Arriva will be expected to deliver ‘sustained improvements in performance levels’, and the contract includes new incentives financially penalising Arriva should incidents caused by Network Rail, train and freight operators impact on London Overground services. In addition, the measurement for punctuality will be tightened to within three minutes of scheduled arrival time, rather than the current five minutes under the Public Performance Measure (PPM). TfL says these measures are being implemented to encourage closer working with Network Rail and Bombardier to continue to improve reliability and provide high quality services for customers.
The contract award is subject to a 10-day standstill period.