Residence » EUROPE » Hitachi Rail Secures Monumental £500 Million Deal to Provide 14 Recreation-Altering Trains for FirstGroup
Saturday, December 7, 2024
Hitachi Rail has signed a contract with FirstGroup plc and Angel Trains Restricted to lease 14 new, UK-built five-car Hitachi electrical or bi-mode trains.
Below the settlement, FirstGroup has dedicated to leasing 14 five-car class 80X Hitachi electrical, battery electrical, or bi-mode trains, totaling 70 vehicles, for roughly £500 million, together with upkeep, over a ten-year interval. Hitachi will manufacture these trains in County Durham, offering a lift to native employment and enhancing the area’s workforce capabilities.
This new fleet will permit FirstGroup to considerably increase its open-access providers. The trains will function on the newly launched London-Carmarthen route and improve capability on current Lumo and Hull Trains providers. The settlement additionally provides FirstGroup the choice to lease as much as 13 extra trains on the identical phrases, topic to approval from the Workplace of Rail and Street (ORR) for its open entry functions.
Prime Minister Sir Keir Starmer is visiting Newton Aycliffe, County Durham, at the moment to mark the settlement, which is able to outcome within the manufacture of 70 new rail vehicles on the Hitachi Rail manufacturing unit. The order secures jobs, strengthens the area’s manufacturing expertise base, and supplies a steady future for the manufacturing unit.
The brand new trains, that are anticipated to be delivered from late 2027, will standardize FirstGroup’s fleet throughout its open-access operations, providing better flexibility, reliability, and buyer satisfaction. Angel Trains will finance the lease, increasing their assortment of Hitachi belongings, whereas Hitachi will handle the upkeep at its services throughout the nation.
The trains will function on FirstGroup’s open-access routes, together with the newly introduced London-Carmarthen service and current Hull Trains and Lumo providers on the East Coast Mainline.
Moreover, the settlement provides FirstGroup the choice to speculate an additional £500 million in 13 extra five-car trains, relying on the success of their open-access functions. These embrace a possible Lumo service between London and Rochdale through Newton-le-Willows, Eccles, and Manchester Victoria, an prolonged Lumo service between Glasgow and Edinburgh, an expanded London-Carmarthen Lumo service to Paignton, and a brand new Hull Trains service between London and Sheffield through Retford and Worksop.
Open-access rail operators, totally funded by non-public funding, assume all business dangers and rewards. This profitable mannequin, backed by the federal government and the impartial ORR, connects underserved areas, promotes financial progress, and provides extra capability on key routes, contributing to a shift from carbon-intensive journey.
Commenting, FirstGroup Chief Government Officer Graham Sutherland mentioned:
“The introduction of our new service between London and Carmarthen, and the extra capacity on Lumo and Hull Trains, will significantly increase our open access portfolio over the next few years, with further expansion possible should our recent applications be successful. The new trains, to be manufactured for us in County Durham by Hitachi, will support UK manufacturing and offer customers more choice as they consider affordable, environmentally friendly modes of travel in the future, and we are pleased to be taking them forward.
“We know that growth and innovation are key for the future of the railway sector and are committed to working with government and all our partners to provide competitive, sustainable and improved services. Successful open access services can provide new connections, add capacity, support local businesses and suppliers, secure jobs and help to drive social mobility and future economic growth.”
Jim Brewin, Chief Director of UK & Eire at Hitachi Rail, said:
“This contract is a positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail UK business over recent years. We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British built trains.
“We owe a lot to the innovation and creativity shown by our customers Angel Trains and FirstGroup and are excited to work in collaboration to deliver on our combined ambitions.
“Equally, we owe a debt of thanks to the Northeast Mayor Kim McGuiness and other local MPs who have worked tirelessly in support of this private sector investment.”
Malcolm Brown, CEO of Angel Trains, mentioned:
“This is a major milestone for the UK rail industry. In less than three months we have delivered c.£250m of investment that will bring millions more passengers onto the rail network, connect key regional centres across the UK, secure crucial manufacturing jobs and breathe new life into local economies.
“This is the first announcement of its kind in six years but our ambitions don’t stop here – this milestone represents the beginning of a new and exciting journey, which will see Angel Trains play a leading role in the green transition of our rail infrastructure.”
