13/12/2005

FirstGroup awarded rail franchises

UK rail and bus operator FirstGroup has been awarded the contract to run the Greater Western and Thameslink-Great Northern rail franchises, the government has announced.

The new franchises, which are estimated to be worth more than £1 billion in revenue per year, will begin in April 2006.

FirstGroup will pay the government £1.81 billion for the two franchises.

Rival rail operators National Express and Stagecoach also bid for the Great Western franchise.

The Greater Western franchise includes routes on the national rail network currently operated by First Great Western, First Great Western Link and Wessex Trains.

FirstGroup will also provide the overnight sleeper between London and Penzance; the London – Cardiff off-peak half-hourly service; the current level of off-peak mainline stops at Slough; and a direct daily Frome – London return service.

The operator said that over £200 million of investment will be made in the early years of the franchise, which will contribute towards a complete redesign of the high speed fleet; a programme of station improvements; and track improvements on some of the lines between Reading and London to enable faster journeys.

The contract is for ten years, with the final three years dependent on service performance achieving preset targets.

The Thameslink/Great Northern franchise will run for up to nine years, depending on performance targets and the implementation of the Thameslink Programme. It will be renamed First Capital Connect and FirstGroup will invest more than £52 million to boost passenger service quality, including cleaner trains and stations; better ticketing facilities; better security; and more reliable and punctual services.

FirstGroup Chief Executive Moir Lockhead said: “We are delighted to be awarded both of these franchises and look forward to delivering the improved performance, capacity, facilities and customer benefits proposed in our winning bids. We are now the UK’s largest rail operator and will carry more than 260 million passengers per annum.”

Transport Secretary Alistair Darling said: “This award will deliver improvements in the service to passengers as well as a good deal for the taxpayer.

"This will raise the quality of passenger journeys and ensure that services and facilities are in place where they are most needed - now and in the future."

(KMcA/SP)

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