http://www.gnn.gov.uk/environment/fu...partment=False

The Department for Transport has today announced that Stagecoach Midland
Rail Limited (a subsidiary of Stagecoach Group plc) has been awarded the
contract to run the new East Midlands franchise from 11th November 2007.

The new franchise is a combination of the existing Midland Mainline
services from London St Pancras and the eastern section of Central
Trains. Over the life of the franchise, seven years and four months, the
DfT will receive a premium of £133m from Stagecoach Midland Rail
Limited.

Passengers will benefit from improvements including:

* A new hourly service between Kettering and London, increasing the
number of off peak services on the midland main line to five trains per
hour. It has also been agreed in principle to extend this service to a
new station at Corby from December 2008. This removes the need to split
and join trains at Leicester.

* A 9% increase in peak capacity into and out of London St Pancras by
2010, and more carriages on the busiest trains between Nottingham and
Liverpool.

* The new station at East Midlands Parkway will be served by two trains
an hour from December 2008, and a daily direct service between Lincoln
and London will be introduced.

* Journey times between Sheffield, Derby and London will be reduced,
saving up to 12 minutes on an average journey between London and
Sheffield.

* Improved performance, with a forecast 90.4% of trains on time by the
end of the franchise.

* The Community Rail service between Matlock and Derby will be increased
to every hour and extended directly to Nottingham.

* More investment including more than £5m on improvements to stations,
at least 1250 extra car parking spaces and the introduction of smart
card technology by 2010.

Rail Minister Tom Harris said: "This agreement will increase value for
money, improve performance and accommodate future growth in demand. From
new and faster services to increased security at stations, I am pleased
that this new franchise will deliver so many benefits to passengers in
the East Midlands."

The Government will continue to limit annual rises of regulated fares in
line with national policy, which is currently RPI+1%. As with all
franchises, unregulated fares will be the responsibility of the
operator. Stagecoach Midland Rail Limited have indicated they may wish
to raise unregulated fares annually by an average of 3.4% above
inflation.

Notes to Editors

1. The award of the new franchise was announced to the London Stock
Exchange at 7am today.

2. The DfT yesterday also awarded the new West Midlands franchise which
will take over the services currently operated by Silverlink County and
the West Midlands local and regional services provided by Central
Trains.

3. New services will be introduced as part of a new timetable from
December 2008.

4. Market Harborough will continue to receive a two-train per hour
service all day.

5. A single compensation policy for all passengers will be introduced
during the term of replacement rail franchises, commencing with the East
and West Midlands. With improving Passenger's Charter performance in
punctuality and reliability the current discount system means that an
increasing number of passengers receive no compensation for delays.

Therefore discounts in renewal for season tickets valid between one
month and one year in compensation for poor punctuality and reliability
will be replaced by compensation based on delays to individual journeys,
known as Delay/Repay. Under the new system, all passengers will be
entitled to claim compensation for all delays, whatever their cause.

* 50% of the price paid for a single-leg journey delayed by between 30
and 59 minutes;

* 100% of the price paid for a single-leg journey delayed by between 60
and 119 minutes; and

* 100% of the price paid for a return journey delayed by more than 119
minutes.

The changes will also start to standardise disparate compensation
arrangements for single, return and weekly season ticket holders on
different train operators.
--
Paul C