Blog
All aboard - can Grand Central stay on the rails?
14th February 2008
Getting a new rail service off the ground is never easy. New rolling stock has to be commissioned and older carriages renovated; drivers have to be trained and other essential staff recruited. Marketing fresh timetables to customers takes time and travellers have to be reassured that the services will run to time and safely. Grand Central has battled industry indifferences and some outright hostility (from GNER the former holder of the East coast franchise) to launch a service providing a direct route from Sunderland along the Durham coast to London King’s Cross is a great example of a business that has struggled to get over the start line. The first trains pulled out of Sunderland station in December 2007 more than twelve months behind schedule mainly because of long delays in new rolling stock being delivered and then tested. Even now only a partial service is available. The company’s marketing slogan is “the train you have been waiting for” - somewhat ironic given the difficulties the business has faced.
Teething problems aside, Grand Central is bringing about a refreshing change to the rail services available to travellers from the north east. Unlike the majority of train operating companies who engage in price discrimination to the nth degree, Grand Central charges the same for a standard return from Sunderland to London (£69) whether you book in advance or turn up on the day.
Over 60s are eligible for 50 per cent discounts - a standard return is £34.50. The company also offers a 5 per cent refund for Grand Central Ticket Holders unable to find a seat on any given service.
Children (aged 15 and under) are eligble for a 50% reduction on advertised prices and all children (Under 5) travel free.
For people living in Sunderland, Hartlepool and Eaglescliffe, the new service eliminates the cost and hassle of connecting to train services at Newcastle or Northallerton when travelling south. It will be interesting to see just how commercially viable the new services will be and also the impact on the local economy. Sunderland and Hartlepool in particular have suffered from relative isolation in terms of major direct transport connections. Ultimately an integrated ‘Northern Way’ transport network will have important social and economic benefits for a region whose per capita GDP remains stubbornly well below the UK average.
A couple of good BBC news av clips provide some background to the story of how Grand Central has entered the market.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.