Department for Transport announces winner of South Western franchise

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Stock Market statement
For immediate release: 07.00 22nd September 2006

The Department for Transport today announced that Stagecoach South Western Trains Limited (Stagecoach Group plc) has been awarded the contract to run the South Western franchise from 04 February 2007.

Stagecoach Group plc has undertaken to pay DfT a premium of £1,191m (NPV) over the life of the franchise. The franchise has been awarded for 10 years, with the final three dependent on service performance achieving preset targets.

The South Western franchise comprises services currently operated by South West Trains and the Island Line on the Isle of Wight, both currently operated by Stagecoach Group plc and expire on 04 February 2007.

Capacity will be increased on both mainline and suburban services. More rolling stock will be added to the fleet.

As outlined in the Invitation to Tender, Smartcards will be introduced across the franchise area by 2009. Fare structures will change to incentivise travel outside the busiest periods of peak time. Few changes will be made to the current timetable.

The franchise agreement will also provide £40m investment in enhancements at stations. Waterloo and 13 other stations in the franchise area will be gated. Extra security measures will introduced to create a safer travelling environment for the majority of travellers. Stagecoach Group plc is also committed to further improve performance.

ENDS

Notes to editors:

  1. The parties who submitted bids for South Western were Arriva Trains South West Limited (Arriva plc); First South Western Limited (FirstGroup plc); South Western Railway (50:50 venture between National Express Group plc and the Hong Kong Mass Transit Railway Corporation (MTR)) and Stagecoach South Western Trains Limited (Stagecoach Group plc)
  2. The franchise includes services from London Waterloo to Woking, Basingstoke, Southampton, Portsmouth, Exeter and Reading. Bournemouth, Weymouth, Guildford, Salisbury, Brighton, Bristol, Paignton and Plymouth are also served, with the Island Line operating between Ryde and Shanklin on the Isle of Wight.
  3. The current franchisee of both South West Trains and the Island Line is Stagecoach Group plc. Both franchises are due to expire on the 04 February 2007.
  4. For further information please contact the Department for Transport press office on 020 7944 3108.