FirstGroup receives Transport for London contract for cable car

(Alliance News) - FirstGroup PLC on Thursday said it has been awarded a contract by Transport for London.

The Aberdeen-based transport company said under the contract, it will operate the IFS Cloud London cable car that links the Greenwich peninsula with the Royal Docks area on the north bank of the River Thames.

The contract will start at the end of June and has an initial core five-year term with the option to extend for a further three years.

FirstGroup expects revenue of GBP60 million over the potential eight-year period of the contract.

Chief Executive Officer Graham Sutherland said: "We are delighted to have been awarded the contract to operate the London cable car, the only urban cable car in the UK. We are looking forward to working with Transport for London in order to develop the customer proposition for this iconic London experience and landmark and place the service at the heart of its local community."

"FirstGroup has been one of the largest transport operators in the country for nearly three decades, working with a wide range of partners under various forms of contract types, growing passenger demand, creating economic benefits for our communities and delivering significant infrastructure projects. We are actively pursuing opportunities to grow and diversify our portfolio and earnings through further opportunities in the UK, including participating in TFL tenders such as this."

FirstGroup shares rose 1.6% to 184.60 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

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