(Alliance News) - FirstGroup PLC on Tuesday said it has reached agreement with the UK Department for Transport on the termination fee payable for the TransPennine Express train operating company.
This is a condition of the emergency recovery measures agreements put in place by the DfT to provide continuity for rail passengers and the industry during the coronavirus pandemic. The DfT and FirstGroup have now agreed the financial impact of the termination for TransPennine Express which requires a further FirstGroup contribution of GBP6 million, in addition to the GBP42.5 million already paid into the company.
The Aberdeen, Scotland-based transport company said this is the final termination agreement for its train operating companies and follows the agreements reached for a FirstGroup contribution on South Western Railway and on the West Coast Partnership, announced back in December. This settlement reduces the overall financial risk within the First Rail portfolio, the company noted.
"We welcome this agreement with the DfT, and are continuing to discuss a long-term National Rail Contract for TransPennine Express which will focus on passengers and operational performance, with a more appropriate balance of risk and reward," said Chief Executive Matthew Gregory.
"We are working closely with the government and our other partners to ensure that TransPennine Express continues to provide the safe and vital services that are essential to communities across the North of England and Scotland," added Gregory.
FirstGroup shares were trading up 0.6% in London on Tuesday morning at 73.90 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Firstgroup (FGP)