Decision letter
| Date | 25 July 2007 |
| Section | Depot access applications and decisions |
Brian Kogan
Deputy Director, Access, Planning and
Performance
Telephone: 020 7282 2097
Fax: 020 7282 2118
Email: brian.kogan@orr.gsi.gov.uk
October 2007
Ian Yeowart
Grand Central Railway Company Limited
2 Temple Back East
Temple Quay
Bristol
BS1 6EG
David Yates
Northern Rail Limited
Serco House
16 Bartley Wood Business Park
Bartley Way
Hook
Hampshire
RG27 9UY
REASONS FOR THE DECISION OF THE OFFICE OF RAIL REGULATION ON AN
APPLICATION FROM GRAND CENTRAL RAILWAY COMPANY LIMITED UNDER
SECTION 17 OF THE RAILWAYS ACT 1993
Application
1 On 25 July 2007, Grand Central Railway Company Limited (“Grand Central”)
applied to the Office of Rail Regulation (“ORR”) under section 17 of the Railways
Act 1993 as amended (“the Act”). In its application, it asked us to give directions to
Northern Rail Limited (“Northern”) to enter into a Depot Access Agreement (“DAA”)
in respect of Newcastle upon Tyne Heaton depot (“Heaton”), where Northern is the
Depot Facility Owner (“DFO”).
2 Grand Central has made an application under section 17 of the Act because the
parties could not agree payment terms for depot access charges.
Grounds for disagreement
3 The parties have agreed on most elements of the access contract. However, they
have been unable to agree upon the terms for payment of the depot access
charges. Having undertaken credit checks for Grand Central and for the other
beneficiaries at Heaton, Northern considered that Grand Central posed a greater
credit risk than the other beneficiaries. Northern decided that it was reasonable for it
to seek to mitigate this risk by requesting that Grand Central pay invoices for depot
access charges within 5 days of receipt (as opposed to the usual 28 days).
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