Statement re: Shortlisting for West Coast Partnership rail franchise
competition
First Trenitalia West Coast Rail Limited, the partnership between FirstGroup
plc ('FirstGroup') and Trenitalia UK Limited ('Trenitalia'), has today been
shortlisted by the Department for Transport for the West Coast Partnership.
Commenting, Steve Montgomery, First Rail Managing Director said:
"FirstGroup, with our partner Trenitalia, will bid for the upcoming West Coast
Partnership. We are well positioned with our partner to develop a completely
new customer proposition both on the West Coast route, and, through the
exciting opportunity this franchise offers, to design and run initial services
on the HS2 network.
"We have a strong track record in delivering continued modernisation and
investment, alongside industry partners, through our rail operating companies
Great Western Railway, TransPennine Express and Rail Operator of the Year, Hull
Trains. In August, we will begin operating the South Western rail franchise
where we will deliver £1.2bn of investment and improve the experience for
customers, with better trains, more seats and quicker journeys.
"Our partner Trenitalia is one of Europe's top railway operators, and manages
long haul services, both on high speed and conventional lines, as well as
regional and metropolitan services. That complements our expertise in running
long distance services such as those found on the West Coast routes."
Commenting, Barbara Morgante, CEO of Trenitalia, said:
"Trenitalia will bring FS Italiane Group's industry-leading high speed rail
knowledge to the West Coast Partnership. Since our acquisition of the c2c
franchise, we have overseen a significant improvement in the network's
performance and we are now looking forward to bringing this experience to the
wider UK market.
"We believe that the UK rail market provides an excellent opportunity for the
group to leverage its experience accrued in the highly competitive Italian
market.
"Together with FirstGroup, we will focus on the customer experience and look
forward to developing innovative proposals through which West Coast and HS2
passengers will be able to realise the most benefit from our services."
Notes
1. First Rail Holdings ('FRH') and Trenitalia UK have entered into an
agreement governing First Trenitalia West Coast Rail Limited to participate in
the West Coast Partnership franchise competition, which amongst other terms
provides that, in the event of a default by either shareholder, the other
shareholder will have the right to acquire the defaulting shareholder's shares
for fair value, such amount not being subject to any cap. As a consequence, and
by application of Chapter 10 of the Listing Rules (in particular paragraph 5R
(3A) of Annex 1 to Chapter 10), the Group is required to comply with Listing
Rule 10.4.1. In compliance with that obligation, the Group provides the
following information: under the terms of the partnership FRH holds 70% of the
equity in First Trenitalia West Coast Rail Limited and Trenitalia UK holds the
remaining 30%, with Trenitalia UK acquiring its shares from FRH for an
aggregate consideration of £30, which has been satisfied from Trenitalia UK's
existing financial resources. First Trenitalia West Coast Rail Limited has no
trading history and has gross assets of £100.
2. Both FirstGroup and Trenitalia hold 'Pre-Qualification Questionnaire
Passports' with DfT Rail Executive which shows that they have satisfied basic
financial and other competence criteria and allows them to submit franchise
bids to Government. In December 2015, Trenitalia became the first new entrant
to be awarded a PQQ Passport by the Department for Transport and since then is
pursuing a number of franchise opportunities.
FirstGroup plc (LSE: FGP.L) FirstGroup plc is a leading transport operator in
the UK and North America. With £5.7 billion in revenue and more than 100,000
employees, we transported around two billion passengers last year. Each of our
five divisions is a leader in its field: In North America, First Student is the
largest provider of student transportation with a fleet of around 44,000 yellow
school buses, First Transit is one of the largest providers of outsourced
transit management and contracting services, while Greyhound is the only
nationwide operator of scheduled intercity coaches. In the UK, First Bus is one
of Britain's largest bus operators, transporting 1.6 million passengers a day,
and we are one of the country's most experienced rail operators, carrying
around 130 million passengers last year. Our vision is to provide solutions for
an increasingly congested world... keeping people moving and communities
prospering.
Trenitalia is the passenger rail transportation company part of FS Italiane
Group, a major industrial player with an increasing international presence and
operating revenues of over 5 billion euros. FS Group runs 8,000 trains a day,
serving 600 million passengers and carrying 50 million tons of freight a year,
over a network exceeding 16,700 kilometres. The group's objective is to develop
a large-scale mobility and logistics project capable of contributing to the
country's economic growth. The holding company, FS Italiane, controls companies
active in specific core businesses - all of which, in terms of safety levels
and technological standards, are European leaders. Trenitalia, the group's rail
transportation company, is one of Europe's top railway operators, and manages
passenger transport with its long haul connections, both on high speed
(Frecciarossa) and conventional lines, as well as regional and metropolitan
services. On February 13th 2017 Trenitalia completed the acquisition of the c2c
franchise from National Express. Other companies belonging to the FS Italiane
Group include RFI, Busitalia, Italferr, Mercitalia, Ferservizi, Italcertifer,
Centostazioni, GS Rail, FS Sistemi Urbani, Netinera Deutschland, TX Logistik
and Thello.
Contacts at FirstGroup:
Faisal Tabbah, Head of Investor Relations, +44 (0) 20 7725 3354
Stuart Butchers, Group Head of Media, +44 (0) 7713 317979
Corporate.comms@firstgroup.com
Contacts at Brunswick PR:
Michael Harrison / Andrew Porter, Tel: +44 (0) 20 7404 5959
Contacts at Trenitalia UK:
Giovanni Sanfelice di Monteforte, Tancredi, 07775 858152