SCOTTISH transport company Stagecoach was today awarded the contract for the new East Midlands rail franchise.
The Perth-based company, which operates buses and trains across Britain, said the franchise, which will run for seven years and four months, would be worth around £235 million in annual total revenues.
The operation, which will run trains from th
e new St Pancras International station in London, combines the current Midland Mainline franchise and regional services transferred from Central Trains.
Stagecoach chief executive Brian Souter said: "We are delighted to be entrusted by the Government with the contract to run a key rail franchise in a region that is the heart of the UK transport and logistics economy, with significant growth potential.
"We plan to win back customers from the car and grow the market by delivering a high-quality service that meets the diverse needs of short and long distance commuters, business and leisure travellers."
Stagecoach added it would put more than 850 extra mainline peak seats into and out of London and said it would implement a £26.5m fleet interior and performance improvement programme. The franchise will be operated by Stagecoach subsidiary Stagecoach Midland Rail, who will receive a subsidy in the early years of the franchise and pay money to the Government in the later years.
A premium of £133m will be paid to the Department for Transport (Dft) over the period of the franchise.
The news follows the Dft announcement yesterday that the Go-Ahead Group had won the competition to operate the new West Midlands franchise.
