German Railways’ decision to axe Shropshire rail link is monopoly abuse, say county Lib Dems
January 27, 2011 2:10 PM
By Pic: Stavros Lainas.
By Pic: Stavros Lainas.
Shropshire Liberal Democrats have criticised German Railways (DB) for pulling the plug on Shropshire's hard won London rail link with just three days notice.
Shrewsbury Parliamentary Spokesman Dr Charles West said: "This is a terrible blow for Shropshire's efforts to build its economic recovery after a deep recession and a very hard winter. Shropshire deserves better than this.
"Its very bad news that German Railways, who now play an increasingly important role in running trains in the UK, have pulled the plug at such short notice.
"The Shropshire service has a talented management team but the suddenness of this announcement suggests that the decision was ordered by DB bosses in Germany.
"With DB also owning Arriva who run most of Shropshire bus services as well as Arriva Trains Wales, it is difficult not to feel the county has fallen victim to monopoly abuse. This sad situation is a legacy of the last Labour government who failed to introduce adequate safeguards when these takeovers were permitted.
"At the very least DB should have waited to see how demand responded after some very hard months and record bad weather. They have let their customers down.
"Wrexham and Shropshire trains have built up a loyal following for superb customer service but the business model always relied on demand building up over a long period to profitability.
"Inevitably the recession would lengthen this process but every forecast is for massive growth for railways in Britain over the medium and long term and the coalition has protected rail investment from the worst of the cuts.
"DB have swung the axe in a way which will disappoint those who used to regard German Railways as a model of excellence and long term thinking.
"Subsidies are unlikely in the current climate, but I hope that another railway company will look seriously at launching a replacement London service from Shropshire and Cheshire as a long term commercial opportunity. Virgin and London Midland are the obvious candidates.
"MPs and councillors from all parties in Shropshire need to unite to try and encourage another operator to step forward."
Andrew Bannerman, Lib Dem activist and longstanding Shrewsbury campaigner who lives in the town centre, said: "Wrexham and Shropshire offered a new and valued service to the town which will be greatly missed. Shrewsbury deserves a direct rail link to London."
ENDS
Notes to Editors: Wrexham & Shropshire launched in April 2008 as an independent company, restoring direct train services between Wrexham, Shropshire and London Marylebone on an open access basis.
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The trains won a reputation for excellent customer service, reaching a 99% customer satisfaction score in the National Passenger Survey. Despite growth in passenger numbers, it is reported that revenues did not cover more than 65% of the operating cost and in 2010 the service suffered losses of £2.9 million.
- In 2009 the original service of five trains per day was reduced to four, while in December 2010 it dropped again to three trains per day. In addition, an agreement was reached with sister company Chiltern Railways to assist capacity and the company claims it has investigated opportunities for synergy between Wrexham & Shropshire and Arriva Trains Wales, which was also taken over by DB last year.
- Arriva Trains Wales was taken over by DB just days before the general election last year. Trains on the route have an opportunity to generate extra income by serving Wolverhampton after April 2012 when contractual restrictions are expected to be removed.
- A number of other rail companies including Virgin and Arriva (before the DB takeover), have proposed running alternative services on the Shrewsbury line to London in recent years.
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