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Eversheds LLP advises UK Government on major strategic rail franchise deals

Eversheds LLP advises UK Government on major strategic rail franchise deals
  • Global
  • United Kingdom


    Law firm Eversheds has advised Department for Transport on the new Trans Pennine Express (TPE) rail franchise awarded to First Trans Pennine Express Limited and the new Northern Franchise awarded to Arriva Rail North Limited completed on 22nd December 2015.

    Both new franchises are due to start on 1 April 2016. The Northern franchise will run for 9 years, until 31 March 2025, with a possible extension of 1 year. The TPE franchise will run for 7 years, until 31 March 2023, with a possible extension of 2 years.

    The new franchises will bring about major investment and improvements to passenger services across northern England and southern Scotland. The new franchisees will deliver more seats and services and many other improvements. More than 500 brand-new carriages will be introduced and space will be provided for an additional 40,000 extra passengers at busy times. First and Arriva will invest more than £55 million in improving stations The franchise agreements contain new targets to improve operational performance.

    On the TransPennine Express franchise, First Trans Pennine Express Limited will pay premium to the government of around £400 million over the life of the new franchise, taking the franchise out of subsidy for the first time. On the Northern franchise, Arriva Rail North Limited will reduce the amount of annual government subsidy required by around £160 million over 9 years.

    The Eversheds team was led by Partners Mark Brunton and Agnes Koko. It also included partner Anne Harris and specialist procurement Partner Totis Kotsonis and Senior Associates Will Spickett and Andrew Bell.

    Mark Brunton commented:

    “We are delighted to have advised the Department for Transport on such strategically important new franchises which will bring major benefits for passengers and the economy.”

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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