Go-Ahead sees profits dip
n
The Go-Ahead Group, part owner of Govia, which runs London Midland, Southern and Southeastern, made a profit of £37.3m on its rail division for the year ending 3 July 2010 – less than two thirds of the profit it made the previous year.
Revenue also fell from £1,552m in 2009 to £1,537m. Although income from fares grew on all three franchises, it was offset by decreasing subsidies from the government. Go-Ahead’s chairman, Sir
Go-Ahead chief executive Keith Ludeman
Patrick Brown, said: ‘In rail, we expect a small reduction in operating profit margin next year compared to the financial year just ended. We will continue to take management action
accordingly, focusing on service quality, cost control and financial discipline. ‘Our cashflow, balance sheet
and financing are strong and the maintenance of the dividend per share will remain a priority. We have started the new financial year well and trading has been in line with the board’s expectations.’
l More than half (57 per cent) of senior executives in the transport sector are more confident about the economy than they were at the start of the year, according to a survey by law firm Eversheds. The Tools for Recovery report found that transport companies had a more positive outlook than other business sectors.
East Anglia gets franchise extension
National Express’s East Anglia franchise has been extended by seven months – and the transport group is in talks with the Department for Transport about a further extension. The Labour government had said
that neither of National Express’s remaining rail contracts, C2C and East Anglia, would be extended after it pulled out of its East Coast franchise early.
The extension, which takes the
contract up to autumn 2011, raises the possibility that National Express may be allowed to re-bid for both franchises, which Labour had said it would not be allowed to do after defaulting on its premium payments for East Coast. East Anglia and the C2C
franchise were due to be re-let next spring, but the coalition government has postponed both franchise
competitions while it reviews rail franchising as a whole. Dean Finch, National Express
Group chief executive, said: ‘We’re pleased to have been given this initial extension and to be able to continue to serve our customers on the East Anglia franchise. We continue to explore opportunities to deliver our industry-leading rail performance across both our franchises beyond 2011.’
High speed rail ‘brings regional prosperity’ n
Significant economic benefits are brought to communities served by high speed rail, a joint
study by the London School of Economics and Political Science and the University of Hamburg has discovered. Researchers found that towns connected to a new
high-speed line saw their GDP rise by at least 2.7 per cent compared to other conurbations not on the route. The study focused on the line between Cologne and Frankfurt, opened in 2002, which has trains of 185mph. Dr Ahlfeldt, from the Department of Geography and
Environment at LSE, said: ‘It is quite clear that the line itself brought significant and lasting benefits in access to markets, growth, employment and individual prosperity.’
PAGE 12 OCTOBER 2010
Scott Wilson bought by US firm
Engineering company Scott Wilson has been bought out by American construction and engineering firm URS Corporation. The London-based firm,
which has offices around the world, is the fourth largest UK transport consultancy, behind Atkins, Arup and Mott Macdonald. Scott Wilson is currently doing design work on Crossrail and has also worked on the East London Line. Hugh Blackwood, group
chief executive of Scott Wilson, has joined URS as a vice president of URS Corporation and senior vice president of international operations. He will remain in London to
oversee URS’ Infrastructure & Environment business for the UK and Ireland, Europe, the Middle East, India and China. Blackwood said: ‘We are
looking forward to providing our clients with access to a larger global footprint and the ability to meet their needs across a wider range of services and sectors, including the nuclear power market, which is a key strength for URS.
‘Our employees will be able
to participate in larger and more complex projects, as well as benefiting from further investment in new areas of expertise.’ Martin M Koffel, chairman
Meanwhile, a new report from high speed pressure
group Greengauge 21 aims to show that high-speed rail is likely to be inexpensive for passengers to use, even though a new line would cost billions of pounds to build. The report, High Speed Rail: Fair and Affordable, looks at analysis on fares already done by the government and finds that there would probably not be premium fares. ‘We have based our analysis on a breakdown of
today’s rail fares for the kind of journeys that will be made in future by high-speed,’ says Greengauge 21 director Jim Steer. ‘Average fares on high speed rail will be around £40 for a single journey and many will actually travel for much less – around the £20 mark.’
and chief executive officer of URS, said: ‘The acquisition of Scott Wilson opens the door to numerous new opportunities for URS in major international infrastructure markets. ‘URS is now among the
top 10 UK engineering firms by revenue, with capabilities in critical infrastructure markets, including transit, high speed rail, roads and bridges, airports, and ports and harbours.’
Simon Weir
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