FirstGroup PLC has announced that a new National Rail Contract (NRC) has been agreed with the Department for Transport (DfT) for the West Coast Partnership (WCP). The WCP is a partnership between FirstGroup (70%) and Trenitalia UK Ltd (30%). The NRC includes Avanti West Coast and the West Coast Partnership Development, the shadow operator for the HS2 programme. The contract will commence on 15 October 2023 and is for a period of nine years, with a minimum core three-year term. The DfT retains all revenue risk and most cost risk, while WCP will earn a fixed management fee of £5.1m per annum with the opportunity to earn a variable fee of up to £15.8m per annum based on performance criteria.
Avanti West Coast has delivered a significant recovery in operational performance and customer satisfaction since the introduction of its new timetable in December 2022. The operator has stabilised cancellations at below 2% of scheduled services. Avanti is also working on a £117m refurbishment programme for its electric Pendolino fleet, which aims to improve the onboard customer experience. Other improvements for customers include the introduction of a new Standard Premium travel class, a new low-cost flexible ticket, and initiatives to support customers who require additional assistance.
As part of the new contract, WCP will continue to develop and implement initiatives to reduce its impact on the environment. Avanti has placed a £350m order for 23 new electric or bi-mode Hitachi trains, which will help reduce the operator's carbon footprint. WCP will also work on improving air quality and increasing waste recycling.
Graham Sutherland, CEO of FirstGroup, commented, "The new National Rail Contract agreed today will allow our team to use its expertise on further improvements. These include programmes to refurbish the existing fleet and to introduce new, more environmentally friendly trains, which will encourage more passengers to return to the network and help deliver the UK's decarbonisation agenda."