Shock decision to axe Serco contract to run Caledonian Sleeper between London and Scotland including Inverness Sleeper seen as 'worrying' by business people
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Inverness business people have reacted to the shock decision to axe Serco’s contract to run the loss-making Caledonian Sleeper between London and Scotland, including Inverness, Fort William and Aberdeen.
Economist Tony MacKay saw the situation as worrying and Stewart Nicol, chairman of Inverness Chamber of Commerce, said he was surprised.
The decision this week came after Scottish ministers failed to agree a new deal with Serco for the second half of its 15-year franchise.
Transport minister Jenny Gilruth said on Wednesday that Serco’s proposal to “rebase” the franchise agreement “did not represent value for money to the public.”
Work is under way to continue the service after Serco bow out next June, she said, adding: “It is worth noting that Serco has, broadly, delivered well and significantly improved Caledonian Sleeper services over the last seven years.”
Mr MacKay said: “It is an excellent service for both local people and visitors, so this is very worrying.
“The service has obviously had serious financial problems in the last two years because of the huge fall in passenger numbers because of the pandemic.
“I believe that the Scottish Government will have difficulties in finding a better alternative to the current agreement with Serco.
“If the Caledonian Sleeper problems are not resolved there will certainly be a fall in visitor numbers to the Highlands. Local business people and other frequent rail users will also suffer.”
Mr Nicol said: “The sleeper is a significant part of our transport infrastructure to London. It’s an iconic route and I think that what Serco has done with its refurbishment and revamp has given a real uplift to the service.
“It is a key part of Inverness’s tourist offering and I believe it is still a very popular tourist and transport link.
“The Caledonian Sleeper also gives people an alternative to flying to London, or even driving.
“It was a surprise to see them lose the contract, but I assume that Serco and the Scottish Government will be trying to work something out.”
John Whitehurst, managing director of Serco’s Transport business, noted that the decision was not made due to any performance issues.
He added: “The service has been loss-making over the life of the contract and the proposals that we made to Transport Scotland were to put it on a more sustainable financial footing.
“We will work with Transport Scotland around options for the future management of the service and in the meantime continue to deliver a world-class service.”
