Increased passenger numbers offset cost of Merseyrail '777' delay

The longer-than-expected introduction of Merseyrail’s new Stadler Class 777 units cost the taxpayer half a million pounds over a three-month period, according to a report presented to the October meeting of the Liverpool City Region Combined Authority (LCCA).

However, Merseyrail has also registered record pre-tax profits of £43.9 million for 2023, almost three times the previous year’s figure. Most of this will go to the operator’s shareholders.

The profit is £15m higher than expected because disputed previous underpayments have been settled by an independent arbitrator.

Total earnings last year were up 13% to £209.9m. The success comes from increasing the annual patronage to 28 million journeys after COVID, boosted by extra business from the Eurovision Song Contest and the Open Golf Championship.

The Liverpool system has been jointly run for the last two years by Serco Group and Transport UK, following a management buyout of Abellio. The 25-year franchise runs until 2028.

The first of the fleet of 52 Class 777s, costing over £500m in total, was unveiled in January 2023.

The bill for the Class 777 overrun may turn out to be much higher, because a handful of the life-expired 45-year-old Class 507s that should have been laid aside in the spring were still running last month. The £500,000 extra spending that has been signed off only relates to the period April to July.

It is unclear when the last ‘507s’ (owned by Angel Trains) will run, although a sell-out Merseyrail/Branch Line Society ‘Sefton Sparkler’ farewell tour with two units is planned for November 3, from Southport to Hunts Cross and Ormskirk.

The final six units in service have been 507001/03/07/18/23/29.