Longer Trains Plan As New Rail Line Fills Up
The title of this post, is the same as that of this article on the BBC.
This is the sub-heading.
A newly reopened railway line has attracted so many passengers that carriages may have to be added to trains to avoid people having to stand, a council said.
These three paragraphs add a bit more detail.
The Northumberland Line, between Ashington and Newcastle, opened in December after being shut for 60 years but so far only half the six stations are in operation.
County council deputy leader Richard Wearmouth said making the carriages longer was being considered to cope with demand, especially on busy Newcastle United match days.
He described it as a “good problem” for the £298m project where passenger numbers are on course to hit five times the original estimate.
It looks to me that the Northumberland Line is suffering a very bad case of London Overground Syndrome.
The only certain thing, is that as the syndrome will get worse as more stations are opened.
At least the syndrome has a proven solution – The operator just needs to rustle up some more trains.
Newcastle Fans Had Few Trains To London
Yesterday, I felt LNER and Lumo would be cashing in, with Newcastle United playing at Wembley.
The finalists were settled on the 6th of February, so that surely gave Network Rail time to reorganise any engineering works so that LNER and Lumo could be running the maximum number of Newcastle United supporters to London.
Lumo didn’t run at all to London on the Sunday and all LNER trains went via the Stadium of Light.
I would have thought, that Network Rail’s inflexibility cost LNER and Lumo a good publicity opportunity.
London To Edinburgh On Lumo
Yesterday, I took the 10:45 Lumo service from King’s Cross to Edinburgh.
I took some pictures on the way.
I have split them into sepate topics.
Lumo’s Class 803 Train Arrives
Note.
- The train is in Platform 10 in the old suburban station.
- This has now been reduced to just two platforms.
- In the other platform is a Grand Central service to Bradford Interchange station.
At least it appears, that there could be space to reinstate a third platform, if it should prove necessary.
Seating On Lumo
Note.
- I didn’t get a seat with a proper window.
- The seat-back table is generously-sized.
- There is a light over the table.
- The luggage racks were well used.
- There is more than normal leg-room. My neighbour, who was taller than my 1.70 metres, also liked the leg-room.
Both of us, thought the seats were more comfortable than LNER.
I have a spine that curves outwards at the bottom and it often objects to train and car seats. But after four-and-a-half hours on Lumo, it wasn’t protesting.
York to Church Fenton Improvement Scheme
When the York To Church Fenton Improvement Scheme and the closely related Huddersfield To Westtown (Dewsbury) Upgrade are completed, the TransPennine route between Huddersfield and York will be fully-electrified.
These pictures show the electrification is underway.
York to Huddersfield will be over forty miles of electrified line, with a remaining gap of just eighteen miles to the electrification being installed between Stalybridge and Manchester Victoria.
Work At Reston Station
Reston station is being built North of Berwick-on-Tweed. I took these pictures as we passed through.
I describe the station in a post called A New Reston Station.
Arrival In Edinburgh
I took these pictures when we arrived in Edinburgh.
Note Edinburgh is not short of platforms that can take five- and ten-car trains.
These are a few other thoughts about the journey.
Non-Stop Between King’s Cross And Newcastle
It seemed to me, that a lot of passengers left the train at Newcastle.
- Times between King’s Cross And Newcastle are comparable betyween LNER and Lumo.
- Lumo is non-stop until Newcastle.
- Lumo is probably more affordable.
I can see Lumo picking up a lot of business on this leg.
Football At Newcastle
I have come across several Newcastle United season ticket holders in London.
Looking at Lumo’s full timetable, there are these two trains on a Saturday.
- A train leaves King’s Cross at 10:25 and arrives in Newcastle at 13:25.
- A train leaves Newcastle at 19:35 and arrives in King’s Cross at 22:29.
These could be ideal to see the match and get back to London.
Food
The full food service isn’t in operation yet, but we the trolley did come through twice.
Passenger Loading
Most seats were taken, as we left King’s Cross, but due to high number, who left at Newcastle, there were a few gaps as we ran between Newcastle and Edinburgh.
But then this is a shorter leg and perhaps travellers are more likely to drive.
I suspect that Lumo can’t wait to build up their service to the full five trains per day, as it does look like the demand is there.
Morpeth Station
There wasn’t many boarders and leavers at Morpeth station, but as services build up and travellers realise the system is there, will business increase?
Conclusion
I shall take another trip in the New Year, when the full service is implemented.
Cissé’s Stand On Wonga
Papiss Cissé is adamant he won’t wear a Wonga-branded shirt, as reported here in the Guardian.
I support his stand.
I would like to see a law, where all loan companies from the banks, through peer-to-peer lenders to the legal loan sharks, have to publish the amount of money they lend in various parts of the country.
That way we could see if shirt sponsorship was a good idea for lenders.
A Wee Club In The North East
Not my words, but those of Sir Alex Ferguson about Newcastle United as reported on the BBC.
He has a point as what trophies have Newcastle won since Ipswich Town won the old First Division Championship in 1961-62.
One day though, Sir Alex will say something that really gets him into trouble.
Some Financial Ramblings About Wonga
I’ve never liked Wonga, ever since I saw a presentation of it at an Internet awards ceremony a few years ago.
There is an article in the Sunday Times today, which gives a few figures about the company. It apparently lent £375m last year and has made a debt provision of more than £66m. Or about 17.6 %.
That is a high figure and is totally out of line with good, well-run and profitable finance companies. I used to part-own one and our bad debt ratio was if I remember correctly about five percent. Which was well below the industry average at the time.
I also have my own figures from Zopa, where I invest money to lend to third parties. My bad debt to invested money ratio has never exceeded one percent. But I do have a fairly conservative lending policy.
I have done extensive financial modelling in the area of finance companies and like to think, I know why well-run ones make a lot of money.
The first rule is to only lend to those with good credit ratings. Here, Zopa and Wonga are two very different animals.
Zopa creams the top of the market, acts like a normal finance company to borrowers and cuts its investors in on the deal. In fact, I wonder how many Zopa borrowers think of Zopa as a cheap source of finance with excellent terms and conditions?
Wonga on the other hand is a bottom feeder, targeting those with problems and might well look like a loan shark to many possible customers.
Other lenders like say Nationwide, Lloyds and the other reputable banks and finance companies are closer to Zopa, but probably not as much as they’d like to be.
The second rule is making sure that borrowers keep their payments up. Wonga don’t seem to be doing this judging by the bad debt ratio of 17.6 %, whereas Zopa is probably much better than the average for a reputable bank or finance company,judging by my experience. My ex-partner in the finance company feels that the Zopa figures are better than any he’s seen.
Wonga’s model is different to any other finance company. Banks and in effect, Zopa, get their money back over a period of time, typically measured in months or years. Whereas Wonga, probably gets it back in days, so the money goes round and round in the course of a year. Or it should do!
You might consider that Wonga is a money rental company, rather than a lender. Even if it is one of last resort.
At present the Wonga model seems to be working, with a profit of about £26 on each transaction, of which the average size is £150. The Sunday Times doesn’t give the average length of each loan. Estimating what a typical reputable company might make on each deal, it looks like Wonga are really making quite a bit more money!
But there are two sides to every financial equation; money in and money out.
We ran our finance company on a very lean basis and if you are reputable and you get the business you need to grow the business as you want, then you don’t really need to spend too much money on things like advertising or promotion, as your customers do that for you. Even the banks don’t spend much on promoting their loan services! But they are uniquely placed to sell their loans with a big branch network.
Wonga are really spending it, judging by the adverts and the sponsorship you see. Recently, it has been announced that they are pursuing a sponsorship deal at Newcastle United. Remember that the world of personal finance is littered with companies that thought they had a better model, but in fact didn’t. I’m old enough to have seen quite a few!
Wonga’s financial model seems to rely on putting your name in front of as many mugs as you can to carry out its bottom feeding.
If you compare Wonga with any reputable finance company, it would be unlikely that the latter would fall into trouble over its borrowers, as it would probably treat them fairly and respectfully. Using Zopa as an example, it only lends to those with good credit ratings, makes no charges to those, who don’t get loans and generally charges a lower interest rate.
Wonga too, has already aroused the ire of some politicians like Stella Creasy over its policies and high interest rates. Politicians it should be said, need easy targets, like bankers with huge bonuses and payday lenders. Wonga in particular is a very easy target.
My financial modelling experience though does lead me to an important conclusion.
Wonga’s model will only generate profits, whilst there is a large pool of willing borrowers. At present there are obviously enough, but as more and more suffer because of defaulting to Wonga, will the general public get the message that has been preached by the papers, like the Sun here and learn to use alternative sources of credit, like credit unions. Or in fact will they, just manage their finances better?
I gave the example of the Sun, as it is more likely to be the paper of choice of a possible Wonga borrower. On the other hand, there are some nice pieces about Wonga in the Guardian, the Telegraph, the Mail and the Mirror It is also interesting to read some of the comments on a report of the Newcastle United sponsorship deal in the Newcastle Journal.
There is another big difference between the model Zopa and other reputable banks and finance companies use and that of Wonga. The former rely heavily on personal recommendations from satisfied customers to get business. Wonga would probably like to too, but with their high admitted default rate, the number of recommendations would be lower, especially if you’re being chased by them for the money.
So this all makes me think that at some time, Wonga will be unable to sustain the current growth. Especially, if legislation to limit their interest rates of over two thousand percent was passed by parliament.
I wonder whether they have already found the limit to growth, given the Newcastle United deal and the fact that the annoying bus adverts in London have reappeared in large numbers. After all what is a shirt sponsorship deal, but getting your company’s name in thousands of places on the street. If you are selling a quality product like say Emirates, Samsung, Standard Chartered or Waitrose, it doesn’t probably matter having thousands of football fans promoting your brand, but if you’re a payday lender, it might just be counter-productive It would be very informative to read a learned paper on the effectiveness of shirt sponsorship.
There’s Only One F in Shefki
The news this morning is that one-time Ipswich favourite, Shefki Kuqi, has joined Newcastle until the end of the season.
It’s Grim Up The North-East
Sunderland lost two-one at home to lowly Notts County, Middlesbrough lost by the same score to Burton Albion and then in the late match Newcastle lost three-one at Stevenage. When I last looked at the map, Stevenage was in that hotbed of football, Hertfordshire.
Only a few footballers appear to have been born in the county and but they do include Dave Kitson, Kevin Phillips, Vinnie Jones, Jack Wilshere, Ian Walker, Iain Dowie, Rodney Marsh, Dean Ashton, John Radford and Ashley Young. The last incidentally was in the same class at school in Stevenage as Lewis Hamilton and his brother, Lewis, was also on the bench today for Burton Albion.
So there might be some mild celebrations just to the north of the M25. But don’t insult the county by calling them soft Southerners or something similar or they’ll get Vinnie Jones to show you the errors of your ways.
Newcastle Do Apostrophes Different
St. James’ Park, the home of Newcastle United, and St. James’s Park in London spell it differently.
Why?
It was things like that, that used to annoy my father, as everyone had different views on spelling, apostrophes and plurals.
The Wembley Pitch
We get rather blase at Ipswich, as our pitch is often voted one of the best in the country.
I would have thought that the pitch at Newcastle would not be of a good standard, as the pitch is surrounded by high stands and Newcastle weather is not as good as that in London or Ipswich.
The Pitch at St. James' Park
This picture was taken around four o’oclock and you can see that it is mainly in shadow. Surely, this isn’t good for grass!
Now I didn’t even walk on the pitch, but from my lofty place in the sky, it looked to be in good condition and the players didn’t seem to slip at all.
So if they can get it right in the more difficult circumstances at Newcastle, why can’t they get it right at Wembley?
The Anonymous Widower 