FIRSTGroup has beaten rival Stagecoach to one of the UK's biggest rail franchises in a partnership with China's MTR.
Perth-based Stagecoach had run South West Trains (SWT) across south east England to and from London Waterloo for more than 20 years.
However, the government has now awarded the new seven-year contract to the First MTR bid, which pledged a £1.2 billion investment to improve journeys for passengers. This includes 22,000 extra seats during peak morning times, 90 new train, and faster travel.
Stagecoach group chief executive Martin Griffiths said: "We are proud to have operated the network under the South West Trains brand for more than 20 years and we are disappointed that we have been unsuccessful in our bid for the new franchise."
However, Tim O'Toole, his counterpart at Aberdeen-based FirstGroup, said: "We are delighted that our partnership with MTR has been selected by the DfT to run the South Western rail franchise, a key part of the country's railway network which millions of people rely on every day.
"Our successful bid will deliver the tangible improvements that customers and stakeholders have told us they want.
"Passengers can look forward to new and better trains, more seats and services, quicker journey times, improved stations and more flexible fare options."
Every year 100 million people travel to and from Waterloo, the busiest station in the UK. SWT runs 1,700 trains a day serving 200 stations and employs 4,500 staff.
MTR, owned by the Hong Kong government, runs the metro there and already operates rail services between London Liverpool Street and Shenfield. It also ran the London Overground with Arriva until last December.
Jeremy Long, chief executive of European Business at MTR Corporation, said: "MTR is known across the world for the excellent quality of its rail services, and we look forward to working with FirstGroup to provide a best-in-class travel experience for passengers in London and the South West.
"Together we will deliver a major programme of upgrades, including improvements to both rail services and customer experience, for passengers travelling across the South Western network."
Transport Secretary Chris Grayling said: "We are delivering the biggest rail modernisation programme for over a century and this franchise will deliver real changes for passengers."
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