Interview: Jonathan Dunster on early retirement and rail's future

Jonathan ‘Gus’ Dunster has held the top job in three parts of the railway industry. David Clough explores the career of this redoubtable railwayman.

In this interview:

• Dunster on why he's taking early retirement
• Organising diesel festivals
• Why heritage railways will have to offer more than rail journeys

Jonathan Dunster - Gus to his friends - has held the top job in contrasting parts of the railway industry.

Until 2022, when he retired, he was executive director for operations and safety on Avanti West Coast’s board. His remit covered everything ‘operations’, including Fleet and Engineering, as well as responsibility for contracts with the Department for Transport, Network Rail and Alstom. That followed a career which started in the booking office at Paddington in 1987.

Now, instead of worrying about the West Coast Main Line, he runs the heritage Severn Valley Railway as its managing director. And he is busy increasing its links with the modern system - not least with a training agreement between the Kidderminster line and Network Rail. He has also played a leading role in diesel preservation.

Such a background makes Dunster ideally suited to comment on different aspects of the industry, such as current contractual arrangements on the railways.

For example, he believes that pressure from HM Treasury to reduce costs has led to the DfT micro-managing the contracts that exist between itself and train operating companies. He views his last eight months at AWC as entirely occupied with four-weekly reports (to DfT externally and FirstGroup internally), rather than running the railway.

Dunster on retiring early

Worryingly, Dunster remarks that he is not alone in leaving the industry, representing a loss of valuable experience. He had planned to retire at 55, but the prevailing situation in 2022 made him decide to go a year earlier.

Having long been involved with the preservation of Class 50s, and having signed up as a Severn Valley Railway volunteer in 1992, Dunster had joined the Board of the heritage line’s holdings company in 2010. He was appointed deputy chairman when his employment with AWC was drawing towards a close.

When retirement came, he offered to volunteer on the SVR for two days a week in a management support role. Events then took an unexpected turn when the former managing director resigned and Dunster was asked to take on the role, which he agreed to do but initially only for six months.

However, six months became nine, and at the start of 2024 Dunster recognised that a permanent arrangement was essential for stability. His appointment as managing director of Severn Valley (Holdings) plc was ratified at February’s SVR board meeting. He also remains deputy chairman.

COVID's crisis for the heritage sector

Dunster says COVID exposed the fragility of the heritage sector’s financing model. For a long time, running trains had barely made an operating surplus, with other income streams such as donations keeping SVR and many heritage lines solvent.

Once COVID restrictions eased, a return to the previous levels of train operation revealed that the coffers were virtually empty, leading to a gradual haemorrhaging of financial reserves. A review brought uncomfortable decisions, including staff redundancies and the contracting out of on-train catering.

Dunster’s approach to the unpalatable decisions needed to keep the SVR afloat was to be highly visible and explain why those decisions were needed. He says that throughout his railway career, he took note of managers who inspired him and used their style on which to model his own behaviour.

“It’s about how you talk to people and how you make them all feel their contribution is important, whether you are tending station gardens or overhauling a steam locomotive,” he says.

Compared with his previous role at AWC, direct communication with people forms a greater part of the role of the SVR managing director than decision-making. A large heritage line such as the SVR has many stakeholders.

Concurrently, Dunster has used his railway contacts in an attempt to boost income.

For example, the SVR’s effective closed season during the early weeks of the year, when heritage trains do not operate, made the line available for use by the ‘big’ railway.

He cites the example of training Network Rail staff on ex-Great Western signalling, which is still found on NR lines in Worcestershire.

However, Dunster took on the SVR position at a time when the railway faced challenges, so why do it?

He tells RAIL his personal motivation is that he can still drive locomotives - particularly his favourite, 50035 Ark Royal.

Dunster on organising diesel festivals

What is involved in organising diesel festivals?

“The planning of an event almost starts before the previous one has taken place,” he explains.

“We arrange two diesel festivals annually these days - the spring event featuring both modern and heritage locomotives, while the autumn one focuses just on heritage traction.

“The October 2023 event was based on diesel-hydraulic motive power, and it was then that I began to plan the spring 2024 festival.

“I need to approach rail freight companies, which are generally supportive and view providing a locomotive as good publicity. But all this needs a long lead time.”

This is where Dunster’s contacts from his days on the big railway certainly helps.

The spring festival timetable featured a Freightliner Class 70 making short return trips between Kidderminster and Bewdley.

And the inclusion of an HST set was a surprise. Dunster says Colas Rail approached him for storage of a 2+4 set during May, and agreed to its use during the festival.

As part of Dunster’s plan to garner more collaboration from main line operators to boost SVR revenue, Colas Rail had two new track maintenance machines undergoing commissioning on the railway.

Storage of the HST was requested because it had to move from its former location owing to capacity issues. SVR volunteers with HST experience and Colas Rail staff ensured it was made fit to carry passengers again.

Dunster returns to the subject of event organising: “We have two people who put the timetable together, and they do a really great job. We don’t do anything too radical because the timetable is intensive, operating the maximum variety of locomotives. Life gets very hectic in the weeks leading up to the event.”

He adds: “Rising costs mean that bringing locomotives for just one event is no longer viable.

“We have SVR-based groups, such as Class 50 Alliance, Diesel Traction Group and the Western Locomotive Association, that provide traction. And we have locomotives, such as 33108 and 40106, that are based here under rolling one-year agreements.”

Traditionally, diesel galas did not attract the same visitor numbers as similar steam events. Is this still the case?

“It used to be the case that diesel events attracted only around 75% visitor numbers to similar steam festivals. But last year, for the first time, the numbers were virtually the same. This is due to the age profile of the visitors and what they remember. Other heritage railways are reporting a similar trend.”

Looking at those attending the May diesel festival confirms this. And for some visitors, this was the first time they had seen the heritage diesels in action, virtually all of them having ended their regular passenger careers on BR over 30 years ago.

Dunster looks to the future

Where would Dunster like to see the SVR in five years’ time?

“Next year will mark the 60th anniversary of the opening of the SVR, but the evidence recently has shown that just providing a train line is no longer enough.

“The SVR is in competition with other leisure attractions. A working railway must remain at the core, but there have to be other reasons to pay a visit, such as family-orientated events. These have proved popular and boosted revenue this year. Just putting a steam locomotive on the front of a train and expecting people to turn up is no longer enough.

“We have a tie-up with a couple of canoeing companies that permit people to paddle down to Arley and return to Bridgnorth by train, and this is quite popular.

“To survive for the next five years, we have to provide more than just a train journey. Other heritage railways are facing the same issue.”

What was the SVR’s managing director doing during the spring diesel festival?

“Helping with setting up on Wednesday, driving on Thursday and Friday, and circulating among the public on Saturday and Sunday, to get direct feedback from those who have paid to patronise the event - because their views are important.”

The SVR managing director role fits Dunster like a glove.

“The post-privatisation railway has many interfaces with which one has to maintain relationships with suppliers and stakeholders.

“I have been a volunteer on the SVR for many years, and now have to manage around 55 full time and 18 part-time employees, but also 1,500 volunteers.

“Motivating and managing volunteers is different to dealing with employees. The contacts I have within the industry are helping me to develop the commercial opportunities by acting as a partner with main line railways and this has gathered momentum over the last nine months.”

The SVR is certainly fortunate to have someone at the helm with the range of experience and expertise that Dunster possesses.

Returning Class 50s to the main line

Living in Honiton, in Devon, had brought Gus Dunster into contact with BR’s famous Class 50s in the late 1970s.

Then, just over a year after joining BR in 1987, he co-founded the Fifty Fund together with Dave Keogh. This set out to raise funds to buy a ‘50’.

BR had begun withdrawing the locomotives in 1987, and Dunster asked Network SouthEast (the owning Sector) when examples would be offered for sale.

In the absence of a response, he then wrote to Sector Director Chris Green. This brought the desired result, and the Fund successfully bid for 50035 (coincidentally Dunster’s favourite). Green handed over the locomotive to Dunster at 1991’s Old Oak Common open day.

Living locally (and by now working in Virgin Trains’ office in Birmingham), Dunster became an SVR volunteer in 1992, later qualifying as a driver.

His involvement led to an approach to bring 50031 (by now one of three class members under the Fund’s control) to the railway. Ultimately, this led to all three ‘50s’ being based at Kidderminster.

During the mid-1990s, the SVR became an ‘approved supplier’ to BR (and later EWS) to operate locomotives on the main line. The idea was floated of using a ‘50’ for a diesel-hauled tour.

Meanwhile, the Class 50 Society had acquired 50049 Defiance, and the limited company Project Defiance Ltd (PDL) had been set up to encompass its ownership.

Both PDL and the Fifty Fund exhibited their ‘50s’ at the 1994 Exeter open day. PDL’s Richard Holmes (now Great Western Railway’s fleet manager) said to Dunster (by now the Fund’s chairman) that he aspired to return 50049 to the main line.

During a regular meeting with Rees in 1996, Dunster was persuaded to pursue the main line opportunity with Past Time Railtours.

And on November 1 1997, operating with EWS through SVR’s approved supplier status, 50031 took over the ‘Pilgrim Hoover’ railtour at Birmingham International and took the train to Plymouth, becoming the first ‘50’ to return to main line operation.

Dunster’s rising career in the privatised railway made him well placed to exploit main line running, not just on charters. Timetabled operation on the South Wales Valley Lines was followed by scheduled running for Arriva Trains Wales between Cardiff and Fishguard Harbour.

In 1999, 50049 arrived on the SVR. The two ‘50’ owning groups began a close collaboration and adopted the working name Class 50 Alliance.

In 2006, the members of the Fund and PDL agreed to merge, with PDL’s name changed to Class 50 Alliance Ltd. Dunster was chairman from 2008-22.

Back in 2001, Dunster had been appointed as Virgin CrossCountry’s regional manager for the South West, after the previous post holder moved to a role in the Birmingham headquarters.

A regular dialogue between Dunster and his predecessor blossomed into romance and marriage. Their eldest child became an SVR volunteer and is pursuing his interest in railway engineering by working on a Birmingham University project to convert a Class 08 to run on hydrogen. This is being undertaken on the SVR.

To mark the 50th anniversary of the Class 50s in 2018, Dunster was persuaded to organise a gala weekend. The result was the presence of ten members of the class, bringing attendances and revenue beyond expectations.

What of the 60th anniversary in 2028? Dunster says he has some ideas…

Today, two SVR-based diesel groups - the Class 50 Alliance and the Diesel Traction Group - operate locomotives on the main line, albeit not under SVR auspices.

Does Dunster see a main line future for Class 50s?

“Hindsight is a marvellous thing. If we had known then what we all know now, would we have embarked on the adventure? Yes, because we were naive and full of youthful enthusiasm.

“We now have our third generation of volunteers, who are passionate about these locomotives and yet who never knew them in their BR days, so who knows what lies ahead?”

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