In late 2016 a number of significant issues affecting the current and future use of the railway in the Lower Thames Valley had compounded.
These included the imminent introduction of Crossrail services, delays to the Great Western Mainline Electrification project, HS2 construction plans and a 3rd Runway decision.
Increasingly, the current Heathrow Express business model looked unsustainable.
Against this backdrop, the Department for Transport recognised the need for a whole-industry solution that was commercially and economically viable.
How we helped
As part of the remit, Steer as Technical Advisor provided value for money, business case, financial and technical advice to DfT.
The bespoke nature of the commission showcased the full spectrum of rail advisory services that Steer offers, including mode share and demand modelling, operating cost forecasting, timetable and operations advice, alongside rolling stock procurement, regulatory, financial and commercial expertise.
Successes and outcomes
The Department was successful in the brokerage of a tri-partite deal (between Heathrow Airport Ltd, First Group and DfT) which secured the continuation of an express service to Heathrow Airport.
The deal established a Management Contract, wherein the Great Western franchisee will operate services from Reading using 12x Class 387s on behalf of Heathrow. 19x converted bi-mode trains were procured to facilitate this cascade and to ultimately provide additional capacity for passengers.
The deal also enabled the DfT to escape obligations to construct a replacement Depot for Heathrow Express at Langley (a commitment arising from HS2 works).
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