10.10.14
DfT to extend First Great Western contract until 2019
The Department for Transport (DfT) is to extend the First Great Western contract for three and a half years with a directly awarded franchise, RTM has learned.
FirstGroup will continue to run the Great Western route until March 2019, with the DfT having the option to extend the contract for a further year, but the full terms of the agreement are still to be negotiated.
It is understood that DfT have made the decision to negotiate a three and a half year award with FirstGroup because it would be too disruptive to hold a competitive tendering process during the programme of electrification and delivery of new IEP trains due to take place over the next four years.
Transport secretary Patrick McLoughlin said: “As part of the government’s long-term economic plan I want to see rail travel in the South West transformed. That is why we are delivering a huge programme of electrification and new, modern trains bringing faster, more comfortable and more reliable journeys. First Great Western is best placed to help to deliver these projects over the next four years.
“Throughout this period we will continually be looking at new ways to improve the service for passengers including developing proposals for a half hourly service between Plymouth and Penzance which could also serve Exeter.”
Last year, First Group was awarded a two-year contract to operate Great Western services, running from September last year until September next year, while the government considered options for the future.
The uncontested deal means FirstGroup will maintain a foothold in the rail business. It has recently been beaten in a number of contract bids, including losing its former First Capital Connect franchise to the new Thameslink franchise, and the surprise loss of ScotRail for the Aberdeen-based group to Dutch firm Abellio.
Commenting on the DfT announcement Tim O’Toole, FirstGroup’s chief executive, said: “We welcome the publication of the latest DfT franchising timetable which continues to demonstrate clarity and momentum in the re-franchising programme.
“A period of detailed negotiation will follow but we are very pleased that, after a consultation process in which the DfT sought the views of stakeholders and user groups across the line of route, the DfT intend to negotiate a direct award of at least three-and-a-half years with us. This will offer good value for money and better services for First Great Western passengers and in particular, will provide stability and allow the planned major projects and new trains to be delivered.”
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