First Group has formed a partnership with Hong Kong-based MTR Corporation to bid for the South Western rail franchise.
The deal sees MTR take a 30 per stake in the joint venture which will compete with the franchise’s current operator Stagecoach South West in the tendering process for the new contract which is due to begin in June 2017.
The South Western franchise operates from London’s Waterloo station to the city’s commuter belt and the south coast. It accounts for around 14 per cent of all rail journeys in the UK.
First Rail managing director Steve Montgomery said: “MTR run successful suburban and commuter railways; their knowledge from running London Overground and TfL Rail on behalf of Transport for London will add further depth and understanding to an important component of this franchise.
“First Group and MTR will develop an innovative and value for money proposal that will deliver better connectivity and significant improvements for South Western customers. Our bid will keep people moving and communities prospering across the region.”
MTR already operates London Overground services from Clapham Junction as part of a joint venture with Arriva and has been selected to run the forthcoming Crossrail/Elizabeth Line service, which is due to fully open in December 2019.
The government is scheduled to make a decision on the new South Western franchise in February 2017.