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Arriva wins expanded Danish regional operating contract

12 Dec 2018

DENMARK: Incumbent Arriva has beaten off two rival bids to win the next contract to operate regional passenger services in western and central Jylland, in a deal which includes the transfer of two routes currently operated by national passenger operator DSB.

The DKr1·6bn contract awarded by the Ministry of Transport, Building & Housing is expected to be signed on December 18 following the mandatory standstill period. It is scheduled to run from December 13 2020 to December 9 2028, with an option for a two-year extension.

The contract covers six routes in central and western Jylland which account for 13% of the national network and have been operated by Arriva since 2003 under two previous contracts, as well as the Svendborg – Odense and Struer – Vejle lines currently operated by DSB which will increase the passenger-km covered by the contract by a third. The Skjern – Holstebro route will be transferred to regional operator Midtjyske Jernbaner, along with three Alstom Lint 41 DMUs.

The contract awarded on the basis of the lowest price covers around 10·9 million train-km/year, with service and performance targets similar to the current contract. Arriva will continue to use its fleet of Alstom Lint DMUs, and will take over 20 Siemens Desiro units from DSB.

Arriva said it estimated that contracting out the operation of the services in 2003-10 had saved the government €40·2m, or 18% of the contract value, while the 2010-20 contract was expected to result in further savings. The ministry said the value of the next contract was around 30% lower per train-km than the current package.

‘A key ingredient for our success has been our ability to offer a value for money solution for our client’, said Arriva Danmark CEO Nikolaj Wendelboe. ‘Throughout the current contract, Arriva has consistently delivered good punctuality, high customer satisfaction and excellent customer service. I’m delighted our strong track record in contract delivery has been recognised with the re-award of this contract.’