Virgin and Gner await east coast rail decision

A decision on which company takes over the running of a key London to Scotland rail route was today expected to be announced by the British Government.

The rivals for the East Coast main line franchise are Richard Branson’s Virgin Trains and the 400-mile line’s current operators GNER.

Final approval was being given by Transport Secretary Stephen Byers following a recommendation by the Strategic Rail Authority (SRA).

Today’s decision will end months of wrangling over the route including a resubmitting of bids earlier this year after a dispute about the cost of the upgrade of the line.

The first recommendation on the winner of the new franchise by the SRA was submitted to the British Department of Transport last December.

But the funding row meant a February 2001 deferring of the decision. Then, in April, the SRA said it was establishing a joint venture team that would take forward the line upgrade.

With Virgin and GNER submitting new bids, the SRA madesh recommendation to the Government last month.

It is thought that on both occasions the SRA recommended that GNER keep the franchise.

This would deeply disappoint Virgin which already runs the otherto Scotland route - West Coast main line - as well as the serpentine CrossCountry (correct) franchise.

Virgin’s plan for East Coast would involve the replacing of existing trains with the first coming into service in 2004 as well as new high-speed trains to run if its plans for new high-speed tracks on East Coast went ahead. GNER plans to introduce tilting trains on the line.