RAIL experts say Connex’s successor will have to be less dependent on handouts after the train operator was stripped of its multi-billion-pound franchise.

The Strategic Rail Authority (SRA) gave Connex South Eastern six months’ notice its franchise will be terminated by December 31, 2003, due to its failure to run services on time and a heavy dependence on subsidies funded by the taxpayer.

Transport experts say the SRA must now find a train operator which is able to run improved services and is less dependent on state hand-outs.

London Transport Users’ Committee says with 10 different groups owning train operating companies in this country, as well as overseas groups such as Dutch Railways and Swiss Railways taking an interest in Britain, there could be plenty of applicants.

Deputy director John Cartledge said: “There’s no evidence at the moment to suggest the SRA will have difficulty in finding people willing to take on the challenge, but the real difficulty is finding people willing to do it a price which is acceptable to the authority.

“The SRA will have considerable difficulty in getting the treasury to stump up any more money than the £30bn it has already committed for transport over the next 10 years, so the SRA will be looking for an operator which can deliver the required quality of service at the most competitive price.” In December last year the SRA gave Connex £58m to stabilise its position and demanded it draw up plans to improve its financial performance, but the operator then requested another £200m to help it run services between 2004 and 2006.

SRA chairman Richard Bowker said: “This is a decision we have taken to protect taxpayers’ money and passenger delivery.” Connex chief executive Olivier Brousse said: “There is no doubt our railway needs a dramatic shake-up and more funds.

“Despite the SRA’s decision, I remain convinced Connex could have been part of the solution for the future of the Kent railway.”

PLANS FOR CHANGEOVER ...

THE Strategic Rail Authority (SRA) will distribute 222,000 leaflets to rail passengers to explain the decision to sack Connex South Eastern.

There will be a six-month exit period after which Connex will hand over to a temporary shadow company called South Eastern Trains, headed by two SRA directors and representatives from other operators.

The SRA will then bring forward the competition for a new Integrated Kent Franchise, incorporating South Eastern services and the planned high-speed domestic services on the Channel Tunnel Rail Link, with the winning private-sector company taking over within 12 to 18 months.

SRA chairman Richard Bowker said: “We expect strong competition for the new Integrated Kent Franchise, which we will shortly be putting out to tender and which will bring early improvements for passengers.” He added: “It is business as usual for all passengers and for the vast majority of Connex staff.” The SRA has confirmed all Connex’s operational staff, such as drivers, guards, station managers and cleaners, will be able to keep their jobs under any new franchise.

London Transport Users’ Committee chairman Suzanne May said: “We will be pressing hard for evidence there are safeguards to ensure Connex’s passenger are not forgotten during the changeover period, and funding is in place to ensure this railway continues to function as a vital component in the lives of the communities it serves.”