Dutch-owned Abellio East Anglia has been awarded a renewed contract to run rail services in eastern England in one of the first such decisions made by Theresa May’s new government.
The deal included a £1 billion contract for Bombardier to supply new trains from its base in Derby, which the company claims will secure 1,000 jobs. The new operator claims it will cut journey times on routes between London, Cambridge and Norwich by ten per cent, according to the Department For Transport. Abellio also promised free wifi on its routes.
Theresa May’s government has delayed some infrastructure decisions, such as Hinkley Point C, a plan to build the country's first new nuclear plant in decades.
The award of the East Anglia rail franchise had originally been expected in June.
Current operator Abellio East Anglia, owned by Dutch rail firm NS, will run rail services until 2025 after the government picked its bid over those of rival shortlisted British transport operators FirstGroup and National Express.
The agreement includes a contract for Canadian train and plane maker Bombardier to build 660 new carriages at its Derby, central England factory, to expand capacity on the routes.
Transport Minister Chris Grayling said the contract award would ensure work for Britain's rail industry.
“This is part of our plan to make an economy that works for everyone — not just the privileged few — by ensuring prosperity is spread throughout the country,” he said.
Train services in some parts of Britain, which privatised its rail services in the 1990s, are being hit by a five-day strike this week.
Southern, which runs trains from destinations such as Brighton and Gatwick Airport and is operated by Govia Thameslink Railway, part-owned by Go Ahead, has said only 60 percent of its services would operate during the week-long stoppage.
© Reuters
