a joint venture between John Laing and MTR Corporation, has been selected as the operator of the new London overland rail franchise, the Mayor of London has announced.
MTR Laing beat Go-Ahead Group unit Govia to win the 700 mln stg concession to operate the network, which combines the North London railway, currently operated by Silverlink Metro, and the East London railway, which will open in 2010.
Services on the network will start on November 11, the Mayor said in a statement. It will be named 'London Overground' and will feature on the famous Tube map.
MTR Laing will operate the services under a contract with Transport for London, which is investing 1.4 bln stg in an upgraded service, new trains, more staff and new stations, TFL said. The Mayor will set fares, and revenue will be retained by TfL for reinvestment in the transport system.
The contract is for 7 years, with an option for a 2-year extension, and it is valued at 100 mln stg a year, a TFL spokesman told Thomson Financial News. The final signing of the contract will take place on 2 July.
MTR Laing is a joint venture between infrastructure company John Laing, which is owned by Henderson Infrastructure HoldCo, and Hong Kong metro operator MTR Corporation.
Govia, a joint venture 65 pct owned by the Go-Ahead Group, and 35 pct owned by Keolis SA, was also short-listed.
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