UK WCML Open Access: ORR Rejects Virgin, Lumo & WSMR Bids

ORR Rejects Open Access Applications, Citing WCML Capacity Constraints

The Office of Rail and Road (ORR), the independent safety and economic regulator for the British railway, has denied three open access applications from Virgin, FirstGroup’s Lumo brand, and Wrexham, Shropshire & Midlands Railway (WSMR). The decision, announced this week, halts the proposed introduction of new passenger services on the already congested West Coast Main Line (WCML). This move, stemming from capacity limitations and potential detrimental impacts on network reliability, leaves industry observers questioning the future of open access operations, a model often touted as a driver of competition and service improvement. The ORR cited the southern section of the WCML as being at full capacity, making the introduction of new services unfeasible without harming existing service performance. This article will delve into the specifics of the rejections, the reasons behind them, and what the implications are for the UK’s open access rail landscape.

Capacity Concerns and Network Performance

The core of the ORR’s decision revolves around the capacity constraints on the southern WCML. The regulator’s assessment, which took into account performance, timetabling, and capacity, concluded that the proposed services would significantly impact timetable resilience and increase delays for existing operators. Specifically, the congested southern section of the WCML, which sees heavy passenger and freight traffic, lacks the operational headroom to accommodate additional services without compromising the punctuality and reliability of the network. Stephanie Tobyn, ORR’s director of strategy, policy and reform, emphasized the data-driven basis of the decision, stating that the evidence clearly demonstrated the negative impacts of new services on existing operations. The ORR maintains that the decision was made independently and was not influenced by external factors such as revenue protection for franchised operators, as some critics have claimed.

Rejected Applications: A Closer Look

The rejected applications included Virgin’s bid to re-enter the UK rail market, proposing services linking London with key cities like Liverpool, Manchester, Birmingham, and Rochdale. FirstGroup’s Lumo brand had submitted a proposal for a “Lumo North West” service, also connecting London and Rochdale. WSMR, supported by Alstom, sought to revive a London–Wrexham route. The rejection is particularly significant for Virgin, which had operated successfully on the WCML until 2019 and had become one of the most recognizable brands in UK rail. The company’s departure, and the subsequent rejection of its re-entry bid, is seen as a blow for consumer choice and competition.

Open Access Versus Network Constraints

The outcome highlights the ongoing tension between the benefits of open access operations and the physical constraints of the UK rail network. While open access services can drive competition, offer passengers greater choice and sometimes, more competitive fares, their implementation is significantly hampered by capacity issues on busy routes like the WCML. In contrast to the WCML, the East Coast Main Line (ECML) currently has more available capacity, which has allowed operators such as Hull Trains, Grand Central, and Lumo to flourish. Furthermore, five new open access bids for the ECML are still under consideration by the ORR, demonstrating the different operational realities of these two major lines. The contrast between the WCML and ECML underscores the necessity for strategic infrastructure investment if the government is serious about encouraging rail competition.

Industry Reaction and Future Implications

The decision has drawn criticism from campaigners and rail observers. Neale Coleman, chair of the Campaign for Better Transport, expressed disappointment, emphasizing the potential benefits of open access services for passengers, including better value and more choice. However, Coleman also underscored the urgent need for capacity upgrades across the network. The ORR’s decision may necessitate a re-evaluation of open access application protocols, particularly when related to congested main lines. The need to balance competitive pressures with network capacity challenges will remain a persistent issue. The long-term implications for open access operators are significant, potentially limiting their expansion and the consumer choice they offer, at least until infrastructure improvements alleviate the existing congestion.

Company Summary

Virgin Group: Founded by Sir Richard Branson, Virgin has a history in rail. Virgin Trains operated long-distance passenger services on the WCML until 2019. The brand is also involved in other transport modes, including aviation. Virgin’s re-entry was viewed as a signal of confidence in the UK rail market.

FirstGroup: A major UK transport operator with significant rail interests through brands like Avanti West Coast and Lumo. FirstGroup is an established player in both franchised and open access rail markets, demonstrating a commitment to providing rail transport to the travelling public.

Alstom: A global leader in rail transport, Alstom supplies trains, infrastructure, and signaling systems. The company’s support for WSMR indicates its interest in the open access market as a driver of rail industry growth.