Class 334 Rolling Stock Lease

This notice concerns a modification to an existing lease (the Lease) procured whilst ScotRail was under the Abellio franchise ownership, between ScotRail Trains Limited (SRT) and Eversholt Rail Leasing Limited (Beacon Rail) for 40 x 3 car Class 334 vehicles (the Fleet). The Lease is currently scheduled to expire on 31 December 2030.

The parties have agreed to revise the scheduled expiry date to extend the Lease to 31 December 2034, for the same scope of supplies, with an option to extend for up to a further 12 months beyond this revised date. The value of that extension (inclusive of options) is estimated to be GBP 94,900,000 excluding VAT.

This extension is necessary to ensure SRT is able to discharge its obligations and continue to deliver vital services while the suburban new fleet procurement is concluded and is therefore an interim solution until the new fleet can be procured, built and commissioned for passenger service. The Lease is being modified in accordance with regulation 86(1)(b) of the Utilities Contracts (Scotland) Regulations 2016 as additional supplies not included within the original procurement have become necessary, and a change of contractor cannot be made for economic or technical reasons and would cause significant inconvenience or substantial duplication of cost for SRT, because: 1.

The modification has become necessary: there is a need to secure the ongoing operation of the Lease, which includes lifeline services in Glasgow suburban areas, while SRT carries out a full procurement for an enduring rolling stock solution. 2. A change of contractor cannot be made for economic or technical reasons: this is because: a. the Fleet has specific characteristics and technical features that are designed to interoperate with the rail infrastructure and SRT’s other fleets and are required for operation on the Glasgow Suburban Lines.

For example: (i) Along with ScotRail’s other existing fleets, the Fleet is the only fleet which is fully accepted for operation on these lines, without incurring expensive and operationally disruptive gauging works. (ii) Driver Only Operation (DOO) bodyside cameras are a requirement for the Bathgate to Edinburgh portion of the route, currently operated by the class 334 fleet.

(iii) Any alternative Fleet would require an extensive programme of train crew and engineering staff training, incurring significant training which would create significant additional (and disproportionate) training workload at a time when SRT is already engaged in an intensive programme of recruitment for future fleet cascades and new trains and therefore does not have the capacity to commence a training programme for an additional new fleet within the necessary timeframe. (iv) Please note there is a Section 54 Agreement currently in place.

An extension to the Section 54 agreement is being finalised in relation to the Fleet, and SRT expects that agreement to be in place for the full duration of the lease and options. b. SRT’s analysis has confirmed that there are no alternative available fleets that contain the necessary technical features and could meet these requirements.

Other potential available fleets have insufficient trains or would be too long to replace the existing 3-car Cl334 and do not have the network/depot/safety compatibility required to operate on the relevant routes. c. In the event that an alternative existing fleet with suitable performance and technical characteristics was available (which in SRT’s view is not the case), and that fleet could be adapted to accommodate the necessary technical features, this would result in substantial duplication of cost, significant inconvenience and extra time out of service, which would be disproportionate in the context of an interim solution.