FirstGroup has signed a £500 million agreement to lease 14 new electric and bi-mode trains from Hitachi and Angel Trains, enhancing its open access rail services and supporting local manufacturing in County Durham.

Target Information

FirstGroup plc has entered into an agreement with Angel Trains and Hitachi Rail to lease 14 new five-car class 80X electric and bi-mode trains, totaling 70 cars, at an estimated cost of £500 million over a ten-year leasing period. This deal will not only enhance FirstGroup's operational portfolio but also promotes the manufacturing capabilities within County Durham, as the trains will be produced locally by Hitachi.

The introduction of these new trains is designed to facilitate the expansion of FirstGroup's open access services, specifically the newly announced London-Carmarthen route, as well as to bolster capacity on existing Hull Trains and Lumo operations. The initiative signifies FirstGroup's strategic commitment to enhancing its service offering in the increasingly competitive rail sector.

Industry Overview in the UK

The UK rail industry is experiencing a transformative phase, characterized by the emergence of open access operators that operate with private investment and assume full commercial risks. This model, supp