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First Great Western franchise to continue until 2015
The First Great Western franchise will continue beyond its current end date of 31 March 2013 for at least a further two years.
The franchise will now run until October after the Department for Transport exercised its contractual right to extend the current contract with First Great Western by 28 weeks.
Negotiations for an additional two-year contract will continue, while longer-term proposals for how the next franchise competition will be run will be announced in the spring
FirstGroup said the decision would ensure continuity of service and enable First Great Western to continue to deliver improvements for passengers throughout this longer period.
The extension will facilitate the planned delivery of major projects on the network, in particular electrification and the introduction of associated new rolling stock, as well as significant upgrade work to the line, stations and signalling.
The First Capital Connect franchise will also continue beyond the current planned end date of 14 September 2013.
The current contract includes an option to extend the duration for 28 weeks, which the DfT states it intends to exercise.
The Company is also in discussions in respect of an agreement for the franchise to continue for a further period of up to two extra years, which will allow First Capital Connect to continue to support the successful Thameslink Programme.
This major investment has transformed a key part of London's transport network and benefits for passengers are set to continue, including the redevelopment of London Bridge station and the introduction of new rolling stock.
Commenting, Tim O'Toole, Chief Executive said: "The extension of First Great Western and First Capital Connect provides continuity and consistency for our passengers and enables us to continue to deliver considerable improvements to services. At both these franchises everyone has worked tirelessly to enhance services and we have a record of successfully delivering major projects, working together with Government and our industry partners.
"We have also taken significant steps to tackle overcrowding, although there is still much to do on these routes that are among the most congested in the country.
"Today's announcement will also allow us to work closely with the DfT and our industry partners to deliver the much needed new capacity as efficiently and effectively as possible."
Transport Secretary Patrick McLoughlin said: "These plans mark an important step on the way to restarting the franchising programme, and while I am determined this should happen as quickly as possible we do need time to get this right.
"We have had to take some tough decisions regarding franchising, and while they may provide a challenge in the short term, I believe the lessons we have learnt will help deliver a more robust system in the future benefitting fare payers and taxpayers alike.
"As always our priority is to ensure these changes will not impact on services or our commitment to improving the railways. Our latest step towards delivering a high-speed rail network which will link many of our major cities by a new fleet of state-of-the-art trains is testament to how we are delivering on that commitment."
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