Train operators will be expected to make less profit in future as the Strategic Rail Authority assumes more responsibility for investment.

The SRA announced big changes on 6 November 2002 in the way rail franchises will be run.

Many existing train operators have been trying to squeeze profits of 10% on turnover. They have been told to expect 5% in future.

But the Association of Train Operators has welcomed the changes because it provides greater stability. The operators have been told to concentrate on cleanliness, punctuality and staffing.

The SRA also appears to have turned its back on 20-year franchises and is preparing for five to eight-year terms.

Stagecoach which had been hoping to sign a 20-year deal to keep control of South West Trains has been given an extension of one-year to 2004 and a probable further extension of three years to 2007. One benefit should be more evening and Sunday trains.

A new Greater Western franchise will be created in 2006, merging services currently run by Great Western, Thames Trains and Wessex.

A Greater Anglia franchise is already planned for all services out of London Liverpool Street.

he SRA wants the same idea at major London terminus stations like King’s Cross and Euston but says little about the urgent need to develop a greater range of through London services like Thameslink which is awaiting improvement.

Through services and the North London Link have recently been axed, others via the West London link have recently been cut back, although there has recently been some progress on Crossrail.

Nor is there much evidence of forward thinking on how other cross-London services could be introduced, even more essential with the introduction next year of congestion charging on London’s roads.

In the north of England the SRA has announced that either Connex or First Group/Keolis SA will be awarded the TransPennine franchise which will serve Manchester, Liverpool, Tyne & Wear, South Yorkshire and West Yorkshire from late 2003.

Arriva Trains Northern which currently runs the transpennine services and had been bidding to run the new franchise has been dropped.

John Bourn of Railfuture North East said: There appears to have been a vote of no confidence in Arriva's management by the SRA.

A year's indistrial disruption, whcih still shows no sign of being solved, cannot have helped.

The decision is not an enormous surprise. Arriva Trains North will be bidding for the Northern Rail franchise which will begin in 2004.

More information www://sra.gov.uk