UPDATED 11.18
FIRSTGROUP has reached agreement with the DfT for a further Intercity Great Western contract, after months of detailed negotiations. The new contract starts in September and runs until April 2019.
The GW network faces major changes between now and 2019, including electrification and new Intercity Express trains. A separate fleet of privately-funded hybrid trains for intercity services west of Bristol is also part of the plans.
The award is the second of its type in just a few days. FirstGroup and its franchise partner Keolis have just won a one-year extension of First Transpennine Express, which was announced on Friday.
The improvements which have been agreed on First Great Western include managing the introduction of 369 new Hitachi-built Intercity Express vehicles, which have been specified by the DfT. Faster journeys are promised, and 58 electric trains will be cascaded to the Thames Valley routes for local and commuter services.
The deal also includes recommendations from FGW to introduce a fleet of 29 hybrid long distance trains which, subject to contract and approval from the Department for Transport by the end of June, would replace High Speed Trains between London, Devon and Cornwall from summer 2018.
First said it has already completed the procurement of these new trains, selecting Hitachi Rail Europe as the preferred bidder. Hitachi will supply its AT300 125mph bi-mode trains, which are similar to the new Super Express Trains, in five- and nine-car variants, and there is an option for up to 30 more. First is finalising arrangements under which these trains would be privately financed.
The AT300 trains will use higher engine power to cope with gradients in Devon and Cornwall. They will run as electric trains between London and Newbury, and are equipped with bigger fuel tanks for the long distance journeys to Plymouth and Penzance. Journey times would be reduced by five minutes between London and Exeter, six minutes to Plymouth and 14 minutes to Penzance.
Complaints of severe overcrowding in the peaks, particularly between Reading and London Paddington, have been met by undertakings to provide another 4,000 morning peak seats to Paddington by December 2018. Investment has also been announced, with £30 million for stations and station car parks, £3.5 million for a station development 'match fund', and a £2.5 million accessibility fund.
Transport secretary Patrick McLoughlin said: “I am determined that passengers in the West, Thames Valley and South Wales get a railway that is fit for the 21st century. This is a fantastic deal which will give them more seats, more services and brand new fleets of modern trains, " while FirstGroup chief executive Tim O'Toole said First would be "using our unrivalled knowledge and experience of the network to help deliver significant upgrades over the next few years, in particular the introduction of new trains as the main line is electrified".
He continued: "Under our experienced management, the franchise will see new or refurbished trains on every part of the network, resulting in more frequent and faster journeys and an increase in the number of seats. These, and a range of further passenger benefits, will keep people moving and communities prospering across the Great Western network.”
The new contract is a further 'direct award' rather than the result of a competitive tender. Direct awards to preferred operators have been made several times over the past two or three years, because the DfT's franchising programme was disrupted by the failure of the Intercity West Coast competition in October 2012. This award is in line with the revised DfT schedule for rail franchises which was last updated in October 2014, and seems likely to be the last franchise decision before the general election on 7 May.