FirstGroup PLC has been awarded the contract by Transport for London to operate the IFS Cloud London Cable Car, connecting the Greenwich Peninsula with the Royal Docks area. The contract will commence on 28 June 2024, with an initial core five-year term and the option to extend for a further three years. The Group anticipates revenues of approximately £60m over the eight-year period, with patronage risk taken by the authority and limited capital expenditure and contingent capital.
During the contract period, FirstGroup will support TfL in promoting the cable car as a leader in London's leisure market. The company plans to improve the service and create educational outreach and work placements for school students in the local boroughs of Greenwich and Newham. Graham Sutherland, FirstGroup Chief Executive Officer, expressed the company's enthusiasm, stating, "We are delighted to have been awarded the contract to operate the London cable car, the only urban cable car in the UK."
FirstGroup aims to develop the customer proposition for this iconic London experience and place the service at the heart of its local community. The company has a strong track record as one of the largest transport operators in the country and is actively pursuing opportunities to grow and diversify its portfolio and earnings through further opportunities in the UK, including participating in TfL tenders.
FirstGroup PLC (LSE: FGP.L) is a leading private sector provider of public transport services, with £4.8 billion in revenue and around 30,000 employees. The company's divisions, First Bus and First Rail, are leaders in their fields, providing essential services critical to delivering wider economic, social, and environmental goals. First Bus is the second largest regional bus operator in the UK, while First Rail is the UK's largest rail operator. The company is committed to operating a zero-emission First Bus fleet by 2035 and supporting the UK Government's goal to remove all diesel-only trains from service by 2040.
For more information, visit the company's website at www.firstgroupplc.com and follow @firstgroupplc on social media.