LONDON - FirstGroup plc has entered into a lease agreement with Angel Trains Limited and Hitachi (OTC:HTHIY) Rail Limited for 14 new trains in a deal valued at approximately £500 million, including maintenance over a ten-year period. The trains, which will be manufactured by Hitachi in County Durham, are expected to significantly bolster FirstGroup's open access operations on UK railways.
The lease encompasses 14 five-car class 80X Hitachi trains, totaling 70 cars, which can operate as electric, battery electric, or bi-mode. The addition of these trains is set to enhance the company's services on the London-Carmarthen route, as well as increase capacity for Lumo and Hull Trains services. The agreement also includes an option for FirstGroup to lease up to 13 additional trains if their open access applications are approved by the Office of Rail and Road (ORR).
The investment aims to connect underserved areas, promote economic growth, and encourage a shift from carbon-intensive travel modes. Delivery of the new trains is slated to begin in late 2027, with Angel Trains financing the lease and Hitachi maintaining the trains at various facilities across the country.
Graham Sutherland, CEO of FirstGroup, highlighted the strategic move to expand open access capacity and offer more environmentally friendly travel options. He underscored the importance of growth and innovation in the railway sector and FirstGroup's commitment to competitive and sustainable services.
Hitachi Rail's UK & Ireland Chief Director, Jim Brewin, and Angel Trains CEO, Malcolm Brown, both expressed their enthusiasm for the deal, citing the positive impact on passenger experience, regional connectivity, job security, and the green transition of rail infrastructure.
This development is part of FirstGroup's broader strategy to enhance its rail services, which includes operating Hull Trains and Lumo, and managing Heathrow Express. The company's investment in Hull Trains and Lumo has already resulted in significant environmental benefits and increased seat capacity.
The news of this investment is based on a press release statement by FirstGroup plc.
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