LONDON (Alliance News) - FirstGroup PLC on Wednesday said it has been awarded the TransPennine Express rail franchise until 2023 by the UK's Department of Transport, covering the north of England and into Scotland.
Over the life of the expanded franchise, which FirstGroup said is a key component of UK Chancellor George Osborne's push to create a so-called 'Northern Powerhouse' in order to shift the balance of power away from London, more than GBP500.0 million will be invested in the franchise, including a large increase in the number of carriages which will drive capacity up by around 80% at peak times.
The new franchise also will increase connections between the largest cities in the north of England and Scotland by around 55% by 2019, FirstGroup said, with 220 new vehicles to be introduced and an additional 13 million seats per year to be made available by the same time.
FirstGroup will have responsibility for 19 railway stations in the region and will invest around GBP18.0 million to upgrade these hubs, including in improved passenger information systems and free WiFi.
"Our new TransPennine Express franchise will deliver faster and more frequent intercity train services between the North's major towns and cities and we are excited to help the government achieve its vision for a Northern Powerhouse," said Tim O'Toole, FirstGroup's chief executive.
Rival Go-Ahead Group PLC expressed its disappointment at having not won either the TransPennine Express franchise nor the Northern franchise, which was awarded to Arriva Rail North Ltd. Go-Ahead had bid for both franchises through its joint venture with Keolis, the French transport group.
Shares in FirstGroup were up 1.9% at 105.10 pence Wednesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Firstgroup (FGP)