LONDON (Alliance News) - The Department for Transport said Thursday that it has awarded Go-Ahead PLC's 65%-owned train operating company, Southeastern, a new contract to continue to run the South Eastern franchise until June 2018.
Under the terms of the deal, Southeastern will continue to operate services between London, Kent and parts of East Sussex until June 2018, and make major improvements to customer service, passenger satisfaction and train punctuality across their network.
The FTSE 250-listed transport group said the contract also includes more than GBP70 million investment into better customer information systems, including new digital display schemes at key stations, additional staff and maintenance to stations and trains along the route.
Go-Ahead said the 'Direct Award' contract will see a number of schemes rolled out over the coming three and a half years to improve train services. The new franchise runs from October 12, 2014 to June 24, 2018.
"We're pleased that the government has put its confidence in Southeastern to deliver further enhancements for passengers. The plans to be delivered offer benefits for passengers, taxpayers and the communities that we serve," said Go-Ahead CEO David Brown.
"There's no doubt that the next three years will be a challenging period, with the major service changes required to accommodate the redevelopment work at London Bridge. This work is vital to enhance connections across London and is part of the £6.5 billion government-sponsored Thameslink Programme... The schemes announced today have been agreed by government and our key objectives are to continue to deliver improvements for passengers, assist commuters through the period of change that the Thameslink Programme presents over the coming three years, and continue to attract and encourage new customers to use our services," Brown added.
Planned improvements under the new contract include a new timetable delivering more Highspeed services, and new journey opportunities designed to help passengers during the three-year rebuild of London Bridge station and a new Highspeed 'rounder' loop service calling at more stations and extra seats during the peak hour.
Go-Ahead currently runs the Southeastern, Southern, and London Midland rail franchises through its Govia joint venture. It owns 65% of the venture, with Keolis, which is majority owned by French state rail operator SNCF owning the rest. The Southern franchise service the southern outskirts of London and then through Surrey and Sussex down to Brighton, and Portsmouth on the south coast.
The Department for Transport said Thursday that tough performance targets have been agreed as part of the deal to ensure that rail passengers see "real improvements to their journeys." The government body said the contract is the seventh direct award to be delivered by the Department for Transport following the re-launch of its franchising schedule in March last year.
Go-Ahead shares were Thursday morning trading 2.67% at 2,343.00 pence per share, one of the biggest gainers on the FTSE 250.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.