Caledonian Sleeper Franchise Replacement (Regulation 1370/2007)

On the basis that the Caledonian Sleeper Franchise Agreement between the Scottish Ministers and Serco Caledonian Sleeper Limited (FA), provides firstly for the possibility that the franchisee may exercise a rebasing option after 1 April 2022 and secondly that there are a number of possible consequences under the FA, Transport Scotland, on behalf of Scottish Ministers, are seeking to preserve their ability to make a direct contract award should circumstances arise in due course that give them cause to do so.

Transport Scotland, on behalf of the Scottish Ministers, may, depending on the circumstances and having regard to the obligations of the Scottish Ministers in terms of the Scottish Public Finance Manual, wish to make a direct award of a Public Service Contract to Serco Caledonian Sleeper Ltd under and in terms of Article 5(6) of Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road as amended (retained EU Law).

More information can be found on Transport Scotland’s website:

www.transport.gov.scot/public-transport/rai… ↗

As an alternative to the above and depending on whether circumstances arise which engage the Scottish Ministers’ duty at section 30 of the Railways Act 1993, Transport Scotland, on behalf of the Scottish Ministers may entrust the provision of Caledonian Sleeper Passenger Services to a company owned and controlled by the Scottish Ministers and make a direct award of a Public Service Contract in that regard under and in terms of Article 5(2) or Article 5 (6) of Regulation (EC) No 1370/2007. The Scottish Ministers may put in place a holding company structure in support of the proposed arrangements.

The contract awards described above are expected to cover rail passenger services of substantially the same scope as the current Caledonian Sleeper Franchise. Additional information: Term of Award

The Scottish Ministers may require to put a Public Service Contract in place for up to 10 years (depending on the circumstances and subject to legal constraints).