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Firstgroup PLC (FGP)
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FirstGroup secures Carmarthen-London rail rights in latest acquisition
(Alliance News) - FirstGroup PLC on Thursday said it has completed its purchase of Grand Union Trains GWML Holdings Ltd.
The acquisition includes track access rights for a new open access rail service between Carmarthen, in south-west Wales, and London Paddington.
The Aberdeen-based public transport provider has also submitted an application to the Office of Rail & Road to expand its services to Paignton, Devon.
The Carmarthen-London Paddington service is scheduled to begin in December 2027, and will run for at least ten years. It will provide five daily services, stopping at stations such as Bristol Parkway, Newport, and Cardiff Central. The route will be operated under FirstGroup's Lumo brand.
FirstGroup expects the route to generate annual revenues of around GBP50 million within two years of its launch, with a low double-digit operating margin. The service is anticipated to create around 100 direct jobs.
Chief Executive Officer Graham Sutherland said: "The introduction of our new Carmarthen to London Paddington service will significantly bolster our footprint, and should our other applications be successful, we will almost treble our current open access capacity over the next few years."
In addition to the Carmarthen service, FirstGroup has applied to the Office of Rail & Road to expand its operations by adding five daily return Lumo services between London Paddington and Paignton from May 2028.
The company said these services will enhance connectivity in the South West, stopping at major stations including Bath Spa, Bristol Temple Meads, and Exeter St David's.
Shares in FirstGroup were down 0.3% at 153.50 pence each in London on Thursday morning.
By Eva Castanedo, Alliance News reporter
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