Transport giant Go-Ahead on Thursday said it is in discussions with the Government to extend its contract to run Southeastern rail.
The competition to operate the rail services between London, Kent and parts of East Sussex was cancelled in August. Instead the Government gave Southeastern’s current operator Govia — Go-Ahead’s joint venture with Koelis — an extension to March 31 next year.
At the time the Department for Transport said it had concerns that continuing with the competition process “would lead to additional costs incurred to the taxpayer, with no certainty that this would deliver envisaged benefits for passengers in a timely fashion”.
Go-Ahead today said: “Southeastern continues to perform well, both operationally and financially.”
The company added: “We are in discussions with the DfT regarding a potential direct award contract from April 1 2020.”
Elsewhere in the business, Go-Ahead said its regional bus performance was slightly weaker than expected, with comparable revenues up 2.5% between June 30 and October 26.
Go-Ahead’s London and international buses arm was stronger, with comparable sales growth of 8%.
The shares fell 68p to 2210p.
The firm, potentially threatened by Labour’s plan to nationalise rail, said the “public-private partnership is delivering real improvements on Britain’s railways”.
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