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, 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 handouts.

London Transport Users’ Committee (LTUC) 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. The real difficulty is finding people willing to do it at 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 able to 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.”