A TRAIN operator has failed to reach an agreement with the Government over its renewal of the South West Trains rail service which runs through Basingstoke.

The Stagecoach group has been running services from London Waterloo, and through Basingstoke to the south coast since 1996.

Its contract was due to be renewed by the Government for a further two years after it ends in 2017 but an agreement hasn’t been reached between the Department for Transport and Stagecoach.

Transport Minister Patrick McLoughlin announced yesterday that the contract for the next south western franchise between 2017 and 2019 will now be awarded through a franchise competition.

In a letter to MPs, he said: “After a period of discussions with Stagecoach South West Trains (SSWT), the incumbent operator, it has become clear that we are unable to reach agreement for the anticipated Direct Award.

“The department believes that a franchise competition will ensure that passenger benefits are delivered beyond 2017 in a way that achieves best value for taxpayers and will give us an exciting opportunity to plan services into the 2020s.”

Basingstoke MP Maria Miller welcomed the plans, saying that the franchise competition “has to bring this mainline service into the 21st century", adding: “Passenger numbers have doubled in the past 20 years and levels of overcrowding are now unacceptable at peak times. I welcome the Government’s decision to get on with refranchising the Wessex route so that improvements in passenger services can start earlier.

“The mainline into Waterloo is the only profitable railway in the country yet it has not seen the levels of investment made in other parts of the railway network and we have been left with what can only be called a cattle truck service on some peak time trains with passengers experiencing standing room only on peak time services for journeys of up to an hour. That has to change.

“What this mainline route needs is more, faster, longer trains with smart ticketing and WiFi that works so that passenger journeys can be shorter and more productive.

“The announcement to refranchise the service in 2017 means these improvements can start earlier and help ensure our trains can cope with the increase in demand.”

In a statement, the Stagecoach group said: “A significant difference has remained between both partied regarding the financial evaluation of the proposals.

“Nevertheless, as the incumbent operator with nearly 20 years’ experience in growing and improving one of the most complex and busiest rail franchises in the country, we believe we are in a strong position to submit a powerful and attractive bid for a new South West Trains franchise.”