Arriva Rail London extends London Overground contract after successful six years

Arriva Rail London extends London Overground contract after successful six years

Arriva Rail London (ARL) has been granted a two-year extension to its contract with Transport for London (TfL) to operate the London Overground network on its behalf.

ARL has managed the network since November 2016. It originally signed a seven-and-a-half-year contract with a two year option for extension.

That contract extension has been optioned with the London Overground network to be managed by ARL until May 2026.

The partnership between ARL and TfL has seen several changes and improvements made to the network whilst also navigating the disruption caused by COVID-19.

Paul Hutchings, Managing Director at Arriva Rail London, said: “I’m sure I speak for the entire ARL family in saying how thrilled we are to operate the London Overground for up to two years.

“Approaching the end of the original contract gave us a chance to reflect on our colleagues’ industry leading achievements over the past six and a half years, from the launch of the Night Overground in 2017 to opening Barking Riverside station in 2022.

I have no doubt that the team will continue to excel during the extension and build even further upon the legacy we have already created for the London Overground.” 

The contract extension will have a TfL break option half way through the contract in May 2025, however it will have to be enacted by 31st August, 2023. The contract works under a concession model which means that TfL takes revenue risk, with the operating company receiving a fixed payment adjusted according to performance – a similar arrangement is in place for Crossrail and MTR.

Rory O’Neill, TfL’s general manager for London Overground, said: “I am very proud of everything we have achieved at London Overground but that would not be possible without the close collaboration with Arriva Rail London.

“There has been a great deal of change, not only at London Overground but in the rail industry, since the pandemic but ARL, supported by TfL, has risen to the challenge as we adapt to changing customer travelling habits. We continue to welcome growing numbers of customers back and with the help of ARL will build on that success.”

Photo Credit: Arriva Rail London

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