FirstGroup has confirmed the appointment of Mike Nelson as Managing Director of First Rail, marking a significant leadership transition as the UK rail sector continues its shift towards nationalisation and new operating models. Nelson succeeds Steve Montgomery, who is stepping down following a long and distinguished career in the industry.
Nelson brings continuity to the role, having served as Finance and Strategic Development Director for the past six years. His promotion comes at a pivotal moment for the business, as First Rail navigates the handover of its Train Operating Companies (TOCs) and sharpens its focus on growth opportunities in open access services and new ventures.
Graham Sutherland, CEO of FirstGroup plc, paid tribute to the outgoing Managing Director while expressing confidence in the new appointment:
“I would like to wish Steve Montgomery all the best for his retirement and to pay tribute to his long and successful career in the rail industry and at FirstGroup.
“Mike has been an important part of the First Rail leadership team for the past 6 years, and I am delighted to confirm his appointment as Managing Director of the business. His job will be to continue the successful transition of First Rail, as our remaining Train Operating Companies are nationalised, and to position the business for future growth.”
Nelson steps into the role at a time of material change, with the Department for Transport (DfT) taking back operational control of several franchises. Great Western Railway (GWR) and West Coast Partnership (WCP) are among the remaining contracts set for transition, following the earlier handover of South Western Railway (SWR).
Speaking on his appointment, Nelson emphasised both the scale of the transition and the opportunity it presents:
“I am delighted to be appointed Managing Director at an exciting moment of change as we shift from the TOCs and reposition the business for the future."
“My focus will be on continued close collaboration with the DfT on the handover of GWR and WCP, following SWR last year, the growth of our Open Access business, including our new Stirling service, and building on the successful launch of First Rail London.
"It’s a privilege to lead the talented First Rail team, and together we will be actively looking at opportunities to grow the business.”
Strategic Focus: Transition and Growth
First Rail’s strategy under Nelson is expected to prioritise three key areas:
- Smooth transition of TOCs to public ownership, maintaining operational stability and passenger service standards
- Expansion of open access rail services, including the newly launched Stirling route
- Development of new commercial ventures, such as First Rail London
This shift reflects broader structural changes across the UK rail network, as government reforms reshape the relationship between the public and private sectors.
Industry Implications
Nelson’s leadership will be closely watched across the rail sector, particularly by operators, supply chain partners, and stakeholders involved in infrastructure and innovation. With First Rail repositioning itself for a post-franchising environment, the company’s approach could serve as a model for how private rail businesses evolve in a largely nationalised system.
For professionals across the sector, this appointment signals a continued emphasis on collaboration with government, diversified service models, and long-term growth beyond traditional franchising.
Image credit: First Group
