Financing of new Rolling Stock for Southeastern and associated introduction costs

The overall objective of this procurement is cost reduction and cost avoidance, through securing the best medium and long-term value fleet solution for the benefit of taxpayers, the Department for Transport, Southeastern and ultimately, Southeastern's customers. We believe that this objective can be secured by procuring new trains to replace a significant quantity of Southeastern's ageing fleet and therefore avoiding the escalating maintenance, repair and leasing costs

To meet this objective, the new fleet must be manufactured and introduced into full operational service by October 2027

The quantity of vehicles in the core order will be between 350 and 570, with an option for up to 70 additional vehicles (these quantities have been calculated using an assumed 20m vehicle length). The precise number in the core order will be determined once tenders for supply, financing and maintenance have been received and the business case for new trains is completed. The business case will inform and determine which fleet or fleets are to be replaced and therefore will determine the final quantity for the core order In addition, follow-on options may be sought, to allow the fleet to be increased over time, depending on recovery of demand post pandemic

Bidders will be required to finance the acquisition of the units, spares and special tools, along with associated project and introduction costs, and enter into appropriate leasing arrangements

Bidders should note that the rental profile should be level over the full asset life and hence may not include any balloon or stepped rentals