STAGECOACH, which operates the Alton-to-Waterloo line, has this week signed a deal with the Strategic Rail Authority (SRA) for the South West Trains franchise.

The contract will come into effect on February 1, 2004, and is for a minimum term of three years, expiring on February 4, 2007.

It follows the one-year extension to the existing franchise agreed last year. There is also an option to extend the deal for a further five years subject to the agreement of both parties.

While welcoming the news, Alton Line UsersÕ Association (ALUA) is keen to hold Stagecoach to its promise of significant benefits for passengers, pointing out that SWT will not be in a position to deliver a better service on the Alton line without improvements to the track.

Having read some of the small print, ALUA chairman Chris Campbell is keen to impress upon Stagecoach the need to reinstate double track working past the Farnham carriage sidings to Wrecclesham bridge.

ÒWith the new Desiro trains to be based at Farnham sidings, I can foresee a build-up of trains going into the sheds holding up the service to Bentley and Alton, especially from 2004 when we can expect a massive increase in freight traffic to serve increased oil output from Humbly Grove and the new MRF recycling centre at Holybourne.

ÒWe are already up to maximum capacity - there is no way we can run any more trains on the line because of the track limitation,Ó said Mr Campbell. He is also concerned over rumblings that even more freight trains may be required to transport pipes and oil to and from the recently discovered field at Avington, using the Mid Hants line to Alresford.

ÒThe existing oil trains are already causing problems by running late - last week the 13.58 didnÕt run to Alton because of a two-and-a-half hour delay on the oil run. If the track was reinstated at Farnham, trains could be held to allow passing on the line which would ease the situation and facilitate increased capacity,Ó he said.

Despite local concern, according to a statement this week Stagecoach Group is confident that the SRA agreement, which covers the countryÕs biggest rail franchise, will provide Òsignificant added benefits for passengers, reinforces the positive financial prospects of the group, has the right balance of risk and return, and will deliver consistent value to shareholdersÓ.

The franchise places responsibility for funding and delivering infrastructure projects with the SRA, leaving South West Trains to focus on delivering a better train service to passengers.

Highlights of the new deal include:

l Replacement of the Mark 1 trains with a new £645 million fleet of modern Desiro trains, BritainÕs biggest order for new trains;

l A comprehensive plan to improve punctuality, including making rolling stock route-specific, measures to boost rolling stock reliability, and timetable initiatives;

l The refurbishment of the inner suburban 455 fleet to improve reliability and passenger comfort;

l £6 million to fund on-going fleet reliability improvements;

l A commitment to carry out a repainting programme at 75 stations;

l The introduction of new state-of-the art automatic ticket machines;

l Continued funding for a number of recently introduced evening and late night services and for existing integrated transport initiatives such as bus links and small car schemes;

l Continuation of the PassengersÕ Panel.

Brian Souter, Stagecoach GroupÕs chief executive, said: ÒWe are delighted to have signed the new South West Trains deal, which is a major step forward for the group. It is an excellent deal for government, our passengers, our shareholders and our people.Ó

Executive rail director Graham Eccles added: ÒSouth West Trains is the busiest rail franchise in the country and this cements our position as a major operator within the UK rail market. We look forward to continuing to work closely with the SRA on the delivery of the future strategic direction of the railways.Ó

ALUA too would like closer links with the SRA. Chris Campbell is adamant: ÒIf local rail users are going to benefit from an improved service we have got to have trains reaching their destination. However, until we get some track back and the SRA begins dealing directly with user groups, we will not get a better and punctual passenger service on the Alton line.Ó