South Western Railway: Rail firm operating in Portsmouth could lose franchise after £137m losses
A RAIL firm that operates in and out of the city has said it may lose its franchise after declaring a £137m loss.
South Western Railway directors said in the company’s December accounts ongoing discussions with the Department for Transport could result in the ‘termination of the contract within the next 12 months’ and ‘services being transferred to a publicly-owned operator’.
A spokesman for the firm, which is owned by FirstGroup and Hong-Kong-based MTR, said its performance had been affected by timetable delays, strikes and infrastructure reliability.
They added: ‘We continue to be in ongoing and constructive discussions with the DfT regarding potential commercial and contractual remedies for the franchise and what happens next, in order to ensure we reach the right outcome for the Government, our shareholders and our customers.’
It took over a franchise contract in August 2017, with it due to expire in August 2024.