DfT to extend FirstGroup's Great Western franchise

FirstGroup welcomed a new strategic vision for the Great Western rail network from the Department for Transport on Wednesday, with the DfT confirming it would exercise its option to extend First’s franchise in the region by one year, to 1 April 2020.

The FTSE 250 passenger transport operator said the department also announced its intention to negotiate a direct award for the Great Western franchise for an extra two years to April 2022, with an option for an extension of up to two further years at the DfT’s discretion.

In addition, the DfT was also beginning a public consultation on how rail services are delivered across the Great Western network in any future new franchise, and as the current operator, FirstGroup said it would work with the DfT to support this.

The FirstGroup board said its “extensive experience” of managing the Great Western route, in partnership with the government-owned infrastructure operator Network Rail, would be “critical” to the success of the £7.5bn Great Western main line modernisation programme and the continued delivery of passenger improvements.

“We welcome the publication of the DfT’s new strategic vision for the railways and look forward to progressing this with the Government,” said FirstGroup chief executive Tim O’Toole.

“We are pleased that our strong track record at GWR is recognised, and that the DfT intend to extend the franchise and negotiate a further direct award lasting at least two years.

“A period of detailed negotiation will now follow, but this opportunity will create further stability on the Great Western route as our experienced team continue their work with our partners to transform a key part of the country’s transport infrastructure.”

O’Toole noted that GWR was recently awarded Rail Operator of the Year, adding that its passengers were already seeing the benefits of “significant” investment.

“We have introduced new suburban and long distance trains with more seats, and going forward the upgrade work will enable us to offer more frequent and faster services.

“These will help keep people moving and communities prospering across the network for generations to come.”