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How To Write a Rail Franchise Application

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There are about 20 rail franchises knocking about, all of which are due for renewal over the next ten years, so we decided that this page might prove useful to anyone planning to go into passenger rail operations. It gives you basic guidance as to what to put into your application and what you should expect to happen in the event that you win. The below will need padding a bit, but broadly it's a good guide. A fairly typical rail franchise involving development and growth will run for about 10 years (7 years plus a 3-year optional extension). Longer franchises have been offered - sometimes in exchange for doing stuff and sometimes in exchange for keeping the franchise out of the public eye and doing nothing for longer. Occasionally much shorter franchises are offered to help with reorganisation plans. At all times franchise bids must be realistic. Do not assume that the highest bidder will always win. (But it's a pretty good starting point.) Proposed timetable of works Year 1 Take over franchise, organise new uniforms, rebrand everything, repaint the trains, draw up initial new and improved timetable and ditch surplus trains. Year 2 Order new trains, organise new fares structure and redeploy staff more efficiently. Year 3 Cease to receive a subsidy from the Department for Transport. Cheer. Refurbish a major station and embark on a route modernisation. Year 4 Take delivery of first of new trains and pay Department for Transport a premium. Prepare passengers for service accelerations. Year 5 Accept last of new fleet of trains. Accelerate services. Pay bigger premium. Year 6 Embark on widespread round of refreshing stations, introducing new passenger information systems and deep-cleaning of older members of the train fleet. Year 7 Launch the Department for Transport's new wonder ticketing system. Make more money. End of this year marks the break point at which you can voluntarily terminate the franchise without penalty. Don't suggest you may plan to do this. Year 8 Remarkable increase in passengers brought on by your service accelerations, capacity increases, improved information, better ticketing and contribution to the economic boom will allow you to double your premium payment. Year 9 New technology will allow you to carry a motorway-load of passengers 300 miles in a four coach train with no energy expenditure and a 30-minute journey time. Passengers will accordingly pay £500 for a return standard-class ticket and the premium payment will be doubled again. Year 10 Find remarkable new revenue stream from conquering nearby galaxies and enslaving the residents to work all your services. Double premium payment accordingly. Actual timetable of works Year 1 Take over franchise, organise new uniforms, rebrand everything, repaint the trains, draw up initial new and improved timetable and ditch surplus trains. Year 2 Find the trains you ditched weren't surplus. Get hated by passengers, who make rude comments about your new fares structure. Staff decide not to accept redeployment and go on strike. Year 3 Cease to receive a subsidy from the Department for Transport. Boo. Major station refurbishment over-runs after contractor turns out to have made an unrealistic bid in order to get accepted. Shout at contractor that this should never happen in a mature industry. Order for new trains is put through by the Department for Transport. Year 4 Supposed to be paying Department for Transport a premium. Revenue is actually 25% below forecast so enter cap-and-collar, whereby the Department makes up 80% of this revenue loss in exchange for you paying them 80% of excess profits should revenue ever find itself 25% above that forecast. Prepare passengers for a high fare increase and more overcrowded trains. Year 5 Take delivery of first of new fleet of trains. It doesn't work. Send it back. Builder says it works perfectly on their beautifully maintained test track where it ran round and round in circles for three days with no problems. Make loss. Decide to terminate franchise early. Year 6 Accept first of new fleet of trains. Give shabbier stations a lick of paint. Start an "Adopt a station" project to save on paint costs under the cover of getting the community involved in their railways. New passenger information systems don't work and refresh of older trains goes up the spout when one of them runs into a lorry on a level crossing, leaving you without enough trains to run a service. Trains end up being refurbished overnight and put back into traffic with paint rubbed down and only half the seat covers replaced the following morning. Year 7 Due to technical hitches and administrative incompetence new ticketing system is not actually ready for launching. Sue Department for Transport. End of franchise. Years 8-10 Not applicable.