FirstGroup Rail was busy last week, by purchasing a nascent open-access, operator, announcing new routes and putting in orders for trains.
A Lumo Train, operated by FirstGroup – Image, FirstGroup.
Purchase of Grand Union Train (GWML)
With the Great Western franchise to be moved back into public ownership in the next few years, FirstGroup wants to be relevant in that market. To that end, it has purchased Grand Union Trains GWML Holdings Limited, which holds track access rights for a new open-access rail service between Carmarthen and London Paddington.
The new service between London Paddington and Carmarthen is anticipated to be introduced in December 2027 and run until at least the end of 2037. It will consist of five services a day, calling at intermediate stations in England and Wales, including Bristol Parkway, Newport, Severn Tunnel Junction, Cardiff Central, Gowerton, and Llanelli.
Trains will be operated under FirstGroup’s Lumo brand.
More offerings on Great Western Lines
FirstGroup has also submitted an application to the Office of Rail and Road (ORR) to expand this service with additional paths to Paignton, Devon, allowing five additional return trips a day.
The submission would allow FirstGroup to operate services between London Paddington and Paignton via stations including Bath Spa, Bristol Temple Meads, Taunton, Exeter St David’s and Torquay from May 2028, as well as a sixth path between Highbridge & Burnham and London.
With a reduced stopping pattern, the service is expected to take 3 hours 20 minutes between Paignton and London (compared to the 4 to 5-hour service currently operated three times a day).
These again would be services operated by Lumo.
And how to do this… by leasing further trains.
To boost its operation, FirstGroup has agreed to last a further 14 trains from Angel Trains. In turn, Angel Trains will turn to Hitachi Rail UK to build the trains to support these operations.
The new trainsets will be based on the Hitachi Intercity Express Train Class 80x series (the design used by many higher-speed railways in the United Kingdom).
The company holds options to lease an additional 13 trainsets if the various open access agreements are agreed. As well as the new services above, they also include:
- A new Lumo service between London and Rochdale via Newton-le-Willows, Eccles and Manchester Victoria
- The extension of the Lumo service between Glasgow and Edinburgh,
- A new Hull Trains service between London and Sheffield via Retford and Worksop.
They will be comprised of five-carriage trainsets, made up of electric, battery electric or bi-mode trains (70 cars in total), worth £500m including maintenance, over a ten-year lease period.
Like most of the InterCity Express Train fleet, the final assembly of the trains will be at Hitachi in County Durham.
The trains will be used on the Group’s open access rail services, including the Carmarthen-London route announced on 5 December, and the existing Hull Trains and Lumo services on the East Coast Mainline.
In Quotes
On the purchase of Grand Union Trains (GWML)k, FirstGroup Chief Executive Officer Graham Sutherland said:
“Growing our open access rail portfolio is a key priority for FirstGroup. The introduction of our new Carmarthen to London Paddington service will significantly bolster our footprint, and should our other applications be successful, we will almost treble our current open access capacity over the next few years. Our successful investment in open access through Lumo and Hull Trains has helped connect communities and drive economic growth and we aim to help spur similar effects along this route.”
On the lease announcement for new trains, he added.
“The introduction of our new service between London and Carmarthen, and the extra capacity on Lumo and Hull Trains, will significantly increase our open access portfolio over the next few years, with further expansion possible should our recent applications be successful. The new trains, to be manufactured for us in County Durham by Hitachi, will support UK manufacturing and offer customers more choice as they consider affordable, environmentally friendly modes of travel in the future, and we are pleased to be taking them forward.
“We know that growth and innovation are key for the future of the railway sector and are committed to working with government and all our partners to provide competitive, sustainable and improved services. Successful open access services can provide new connections, add capacity, support local businesses and suppliers, secure jobs and help to drive social mobility and future economic growth.”
Jim Brewin, Chief Director of UK & Ireland at Hitachi Rail, stated:
“This contract is a positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail UK business over recent years. We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British built trains.
We owe a lot to the innovation and creativity shown by our customers Angel Trains and FirstGroup and are excited to work in collaboration to deliver on our combined ambitions.
Equally, we owe a debt of thanks to the Northeast Mayor Kim McGuiness and other local MPs who have worked tirelessly in support of this private sector investment.”
Malcolm Brown, CEO of Angel Trains, said:
“This is a major milestone for the UK rail industry. In less than three months we have delivered c.£250m of investment that will bring millions more passengers onto the rail network, connect key regional centres across the UK, secure crucial manufacturing jobs and breathe new life into local economies.
“This is the first announcement of its kind in six years but our ambitions don’t stop here – this milestone represents the beginning of a new and exciting journey, which will see Angel Trains play a leading role in the green transition of our rail infrastructure.”
Life Beyond the Franchising System
FirstGroup has a big hand in rail in the United Kingdom, with it involved in the following rail franchises (all of which to be returned to the Government as is it takes these services back into public ownership:
- Avanti West Coast (with Trenitalia)
- Great Western Railway
- South Western Railway (with MTR Corporation)
It’s also been involved in other franchises in the past including Great Eastern, Capital Connect (Thameslink), NorthWestern Trains, Transpennine Express and Scotrail – these have been either surrendered or relet to other franchise operators
In terms of Open Access Rail operations (where a train company receives no subsidy to operate from the Government and has to take the full commercial risks), they include:
- Lumo (Currently, operating on the East Coast Mainline between London and Edinburgh)
- Hull Trains (operating on the East Cost Mainline, up to Hull and
With the three big franchises due to be returned to government control over the next few years, FirstGroup is looking to secure its investment in rail and beyond the franchising system, looking to operate profitable services.
That has to be taken with the commercial risk – something FirstGroup should know about.
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