UK transport company FirstGroup has been chosen by the government to operate the InterCity West Coast rail franchise until 2026.
The route links a number of the UK’s major urban areas, including London, the West Midlands, Greater Manchester, Liverpool and Glasgow.
FirstGroup said the new franchise will offer substantial improvements in the quality and frequency of services, which in turn will attract far greater numbers of passengers. This growth will then create greater long-term opportunities for employees; generate solid returns for shareholders; and justify the substantial government investment of £9 billion that the railway has received by providing better value for taxpayers, the company said.
The InterCity West Coast route has a substantial amount of unused capacity that FirstGroup plans to expand with the addition of 106 new Pendolino coaches by the start of the new franchise. The company will further add to that capacity through the introduction of 11 new 125-mph six-car electric multiple units to operate on Birmingham to Glasgow services.
The new franchise will commence on 9 December 2012 and will run for 13 years and four months. The route, which currently has annual revenues of around £900 million, is expected to generate an operating margin of approximately five per cent over the life of the franchise, and will return a premium to the government of £5.5 billion at net present value over the franchise term.
Commenting, Tim O’Toole, chief executive of FirstGroup, said: “We are delighted to be selected by government to operate this unique railway which connects communities across the country and plays a vital role in the UK’s economic growth. Our winning bid is a deliverable proposition that is compelling for all who want to see a greater use of our rail networks. We will be making significant improvements including reduced journey times and introducing new direct services.”
He continued: “As the UK’s largest rail operator with a highly experienced management team, we have established a vast wealth of knowledge with unrivalled expertise in operating every type of rail franchise. We have a proven track record of generating growth from investment in customer service enhancements and innovation, together with a strong focus on operational delivery and financial discipline.
“The award of Intercity West Coast marks a key milestone in renewing and developing our long-term UK Rail portfolio. We look forward to bringing an exciting mix of innovation, and customer and service improvements to InterCity West Coast and creating a better railway for all.”
Among the improvements the company has pledged to deliver by 2016 are: an improved journey time of 15 minutes for trains between London and Glasgow; the introduction of new direct services from London to Blackpool, Telford, Shrewsbury and Bolton, providing a new direct link to the capital for more than 500,000 people; doubling the frequency of London to Preston services, and adding more capacity to Chester and North Wales; and improving connectivity with more stops at Nuneaton and Milton Keynes.
