Aberdeen-headquartered FirstGroup has been named as the preferred operator for the London Overground suburban rail network contract - worth around £3billion.
FirstGroup's subsidiary First Rail London will take over as operator from May 3 2026 on an initial eight-year contract, although Transport for London has the option to extend that for an additional two years.
Under the terms of the deal, Transport for London retains all revenue risk and will dictate service levels, while First Rail London will be responsible for the delivery of train services and managing stations.
First Rail London will also be responsible for operational performance, customer service and ticketless travel.
A number of key rail service improvements are set out in the contract, including:
- an increase in services on the Mildmay and Windrush lines
- supporting TfL’s Vision Zero commitments to deliver a safer transport network
- working with Network Rail, Alstom and other industry partners to deliver continued high performance and passenger satisfaction
- improving the customer experience through investing in information systems, colleague training, enhanced security and better customer information
- continuing to work in partnership with stakeholders to improve accessibility on the network
Graham Sutherland, FirstGroup chief executive officer, said: “The London Overground has greatly improved connectivity in London, with around four million passengers now using the service every week. We are delighted to have been named as the preferred operator for the service from next May and look forward to welcoming employees who will be joining the Group and to play our part in the success of this vital rail network.
"We are an experienced and trusted partner in public transport and look forward to building on our relationship with TfL, for whom we already operate buses, trams and the London Cable Car. Our successful bid for this contract represents another significant step in our strategy to diversify and grow our portfolio, and we will continue to evaluate further growth opportunities like this.”
David Thomas, head of concession for London Overground, said: “London Overground is one of the most popular parts of our transport network, and this new concession puts customers at its heart, helping make the service even better. We’re delighted to welcome First Rail London Limited as our preferred new partner and look forward to working together to deliver a range of benefits for everyone who uses the network.”