Transport Scotland is implementing its procurement strategy for the replacement of the existing ScotRail Passenger Franchise. Under this notice Transport Scotland is seeking to appoint an appropriately experienced and qualified operator to run overnight rail passenger services between Scotland and London (the “Caledonian Sleeper Service”).

Expressions of interest are now being sought from the market. Shortlisted potential operators will receive the Invitation to Tender planned to be issued in September 2013. It is anticipated that the successful bidder will be announced in June 2014 with the contract commencing in April 2015.

It is anticipated that the maximum length of the franchise will be 15 years and that there will be a mobilisation period of 9 months prior to the commencement of operations in April 2015.

The Caledonian Sleeper Service currently forms part of the existing ScotRail Franchise. From the expiry of the existing ScotRail Franchise, it is anticipated that the Caledonian Sleeper Service will be delivered under a separate Franchise Agreement. Transport Scotland intends to launch a separate procurement process for continuing the ScotRail Franchise Services later this year.

The Caledonian Sleeper Service will involve the operation of overnight rail passenger services in both directions between London Euston and each of Edinburgh, Glasgow, Inverness, Aberdeen and Fort William. Services will also be required to call at specific intermediate stations between these terminus points within Scotland. It is anticipated that the services will primarily run on the West Coast main line in England.

The current rolling stock used to deliver the existing service is in need of replacement or refurbishment involving significant modernisation to meet passenger and ministerial expectations. Transport Scotland will make a capital investment of between GBP 50 000 000 and GBP 60 000 000 to facilitate the modernisation of rolling stock. As such the franchise operator will be required to manage the delivery of new and/or refurbished rolling stock to bring the service into line with passenger and ministerial expectations.

This capital investment coupled with the launch of a new brand and a reinvigorated approach to marketing is expected to modernise the existing service and lead to an increase in passenger numbers and revenues. The franchise operator will be expected to maximise the transformation of the Caledonian Sleeper Services through the effective approach and deployment of capital funding, innovative marketing and retailing strategies.

The franchise operator will be required to actively promote social, economic and environmental interests in the delivery of the franchise. Contract performance conditions may therefore relate to particular social, economic and environmental considerations.

Further details will be set out in the Invitation to Tender.