be given longer franchise terms because of the high costs of
leasing rolling stock they face, according to a recently published
document by the Competition Commission.
The independent public body, which carries out investigations
into mergers, markets and the regulated industries, listed several
“possible remedies” which included franchise terms of 12-15 years
or longer, which would give train operators the incentive to
purchase new rolling stock or switch to alternative used rolling
stock.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The Competition Commission also said that rolling stock lessors
should provide companies running the UK’s trains with a “set list
of information” which would give them “the ability to negotiate
with ROSCOs more effectively”.
Diana Guy, Competition Commission’s deputy chairman, said: “As a
competition authority our role is to seek to identify remedies
which can create the conditions necessary to stimulate competition
in the rolling stock leasing market. Our remedies package is
therefore designed to open up a wider range of leasing
opportunities for TOCs, and to increase both the incentives and
ability for TOCs to seek to negotiate better deals.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
