FirstGroup will no longer run the TransPennine Express rail franchise after 28 May owing to the high level of cancellations and delays, ministers have announced. Instead, the state-owned “operator of last resort” will take control instead.
The operator of last resort (OLR) was set up within the Department for Transport (DfT) during rail privatisation, to provide an emergency alternative should companies fail or breach the terms of their contract.
Since 2018, that entity has been a firm owned by the department called DfT OLR Holdings Ltd, or DOHL. Its board consists of a small number of seasoned rail professionals, many with experience dating back to the days of publicly owned British Rail. Its chief executive is Robin Gisby, who was a senior director at Network Rail before leaving soon after the Christmas 2014 engineering fiasco.
For many, the fundamental difference is that all profits are directly paid back to the taxpayer and reinvested, rather than going to shareholders. But generally, at least in the days of franchising and a growing railway, the Conservative government sees it as a stopgap rather than a long-term option.
Normally, the only change is a small senior management team. As when different private firms used to take over franchises, the overwhelming majority of actual employees – and certainly all frontline staff, such as drivers, crew and station staff – remain the same.
In some instances, such as LNER – the new name given when the OLR took over Virgin East Coast in 2018 – even the managing director has remained in place. However, given the breakdown in industrial relations, wider management changes might be expected at TransPennine Express.
It runs LNER, Northern and Southeastern. It took over the east coast
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