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FirstGroup PLC on Wednesday said it has been named the preferred operator of the London Overground suburban rail network by Transport for London. The Aberdeen, Scotland-based bus and rail transport provider said the contract is estimated to have a value of around £3 billion over eight years, with an optional extension period of two years. FirstGroup’s subsidiary First Rail London Ltd will become the new operator of the network from May 3, 2026 with an initial eight-year term contract. The London Overground network spans six routes, with around 4 million passengers using the service each week, according to TfL. FirstGroup said First Rail London it will be responsible for train services delivery and station management, while TfL will retain all revenue risk and specify the service levels. FirstGroup said there number of improvements set out in the contract, including an increase in services on the Mildmay and Windrush lines and supporting TfL’s commitments to deliver a safer transport network. It added it will ‘develop and implement initiatives to reduce the service‘s impact on the environment.’ ‘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,’ said Chief Executive Graham Sutherland. ‘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.’ FirstGroup shares rose 4.8% to 183.50 pence each on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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