UK: Transport for London has selected the GTS Rail Operations Ltd joint venture of rail and bus operator Go-Ahead Group (65%), recently part-privatised operator Tokyo Metro (17·5%) and diverse Japanese business group Sumitomo Corp (17·5%) for the next concession to operate Elizabeth Line services.
The preferred bidder was announced on November 19, and the contract is expected to be finalised in December. GTS Rail Operations will take over when the current contract with Hong Kong’s MTR Corp expires on May 25 2025. The contract will run for seven years with an option to extend for up to two more years.
Japanese know-how
Sumitomo said it would be its first involvement in UK rail operations as well as the first participation in rail operations outside Japan for Tokyo Metro, which is working to develop overseas business.
Sumitomo has long been part of the rail supply chain, and in 2020 it participated in its first overseas rail operating project in the Philippines as part of a strategy to leverage its knowledge and networks ‘to lead the overseas expansion of Japanese railway operators’ and ’export Japan’s advanced railway operations know-how around the world’.
Go-Ahead Group CEO Miguel Parras said ‘we look forward to bringing our collective expertise across UK and international rail operations to London. Our objectives are aligned with TfL — to connect communities across London through safe, reliable and sustainable public transport services, delivered to the highest level of customer satisfaction.’
New contract
TfL said the new contract would bring ‘the best parts of Tokyo and London’ so that the 117 km east-west network across London which now carries more than 700 000 people a day continues ‘to be a showcase for investment in public transport in London, across the country and around the world’.
TfL rather than the Department for Transport is responsible for the Elizabeth Line concession, and it will continue to be responsible for setting fares and marketing services and will retain ticket revenue.
There will be no immediate changes to services, and staff will move to the new operator under TUPE regulations.
TfL said there will be ‘robust collaboration’ with industry partners, and investment in people and technology to improve performance, passenger information and the management of disruption. There will be more than 500 apprenticeships over the contract term.
The new operator will bring into service 10 additional Alstom Class 345 electric multiple-units which were ordered in June, and prepare for the opening of the future High Speed 2 interchange at Old Oak Common station in 2030.
The other shortlisted bidders for the operating contract were Arriva, current operator MTR Corp and the First Keolis Elizabeth Line joint venture of FirstGroup and Keolis.
