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Nexus under fire over preferred bidder

The owner of the Tyne and Wear Metro has come under attack after choosing a German firm as the preferred bidder to operate trains and stations on its behalf.

Nexus said it will finalise details with the bidder, DB Regio (Tyne and Wear) Ltd, a subsidiary of German company Deutsche Bahn, on a contract from next April, to run for up to nine years.

Bob Crow, general secretary of the Rail, Maritime and Transport union said the announcement was a “disaster”, saying: “This is the first major privatisation under Gordon Brown’s leadership of the Labour Party.

“It is a betrayal of the people of the North East who overwhelmingly oppose this plan and is electoral suicide for Labour, bang smack in its heartland.

“This is a disaster for Tyne and Wear which will be felt right across the region. We can expect this essential transport service to be bled dry in the dash for profits by the private company.

“This decision is a kick in the teeth for the vast majority of local people who have supported the campaign against privatisation.”

Nexus said it will maintain local ownership and control of the Metro, secure £300 million of funding to invest in the system, improve the service and create scores of new jobs, while protecting existing ones.

The company, which employs around 1,000 staff, said it will continue to own the Metro, and set fares and service specifications directly.

A Nexus statement said: “The funding package from Government is still to be agreed but Nexus expects it to be worth around £600 million.

“Together these will represent the longest period of financial security Metro has had since it opened in 1980, and allow Nexus to plan the long-term future of the light rail system used by more than 40 million passengers a year.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .