UK public transport operator FirstGroup has been given a new contract to continue running Great Western Railway services for another three years.
FirstGroup has signed a new rail contract with the Department for Transport (DfT) to run Great Western services from Paddington station in London to Wales and the West Country until 2025, with the DfT having the option to extend the contract for another three years to June 2028.
The UK government is now awarding management contracts to train operating companies following the scrapping of the long-running franchise system.
GWR will earn a fixed management fee of £6.9 million per year to run the services and can earn an additional performance-based fee of up to £17.8 million annually.
During the three-year contract period, GWR plans to switch to digital ticketing and make digital channels and information “more accessible and personalised” for passengers. It also plans to bring three new stations into service on its network.
Graham Sutherland, FirstGroup’s CEO, said: “We welcome today’s agreement of a new national rail contract, which enables us to build on the GWR customer experience and encourage passengers to continue returning to the network.
“GWR’s experience of operating the route over many years puts us in a strong position to help deliver the UK’s economic, decarbonisation and levelling up agendas and we look forward to providing vital connections for our customers as the recovery continues to build.”
Rail minister Wendy Morton added: “During the pandemic, GWR was instrumental in keeping critical services moving and this new contract will see it continue to deliver our ambitious plan for rail and provide a fantastic service for passengers.”