Costain JV pulls out of € 6bn Welsh rail franchise race
1 November, 2017 By Jack Simpson
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Full screen CREDIT Hugh Llewelyn_ Arriva Trains Wales
A joint venture between Costain and rail operator Arriva has pulled out of a race for a € 6bn franchise deal to run train services in Wales and build the south Wales metro line.
Costain partnered with Arriva – as part of Arriva Rail Wales – to bid for the operator and development contract, which includes the development of the € 677m south Wales metro project, but the partners have withdrawn their interest.
A Transport for Wales spokesman said: “Arriva Rail Wales has notified Transport for Wales that they intend to withdraw from the bidding process for the next Wales and Borders rail franchise.
“It is not uncommon for bidders for major projects to withdraw during the tender process and Arriva have been clear they have done this for their own commercial reasons.”
Arriva, which has been running train services in Wales for 14 years, said it will continue to work closely with Transport for Wales for the remainder of its contract, which ends next September.
The decision leaves three other rail operator teams left in the race: Abellio, MTR Corporation (Cymru) and Keolis.
The construction firms partnering the other operators, as revealed by Construction News in April , include Carillion and Aecom joining forces with Dutch-based Abellio, Bam Nuttall teaming up with Hong Kong's MTR, and Amey joining the Keolis bid team.
Under the current UK franchise model system, train firms are solely in charge of services, while Network Rail is responsible for enhancements and renewals.
However, the model tabled for Wales will mean operators will partner with contractors and designers to deliver renewals work and enhancements on some lines.
This includes the development of the South Wales Metro, which will be an integrated rail or tram system system around Cardiff. Mott MacDonald has been chosen as the engineering consultant for the scheme.
No final decision has been made on the route yet, but bidders and the Welsh Government have been working on potential options for the metro project since last year as part of the bidding process.
The franchise deal will also include scope for the design and development of other future rail schemes across Wales.
Transport for Wales is asking for final tenders to be submitted for the deal, which could run for up to 15 years, before Christmas, with the winning franchise team to be announced next spring.