Posted 5th December 2024 | 2 Comments

First aims for Devon after completing Grand Union deal

FirstGroup is stepping up its open access ambitions by completing the buyout of Grand Union Trains and bidding for a new route to Somerset and Devon.

First now owns Grand Union Trains GWML Holdings Limited, which has rights for open access services between London Paddington and Carmarthen, calling at Bristol Parkway, Newport, Severn Tunnel Junction, Cardiff Central, Gowerton and Llanelli from December 2027.

First is also asking the Office of Rail and Road today for five daily return paths between London and Paignton, calling at Bath Spa, Bristol Temple Meads, Taunton, Exeter St David’s and Torquay from May 2028, as well as a sixth path between Highbridge & Burnham and London. Both the Carmarthen and Paignton routes would be branded Lumo.

The Group said it expected the new services to be turning over £50 million after two years, and that it is currently ‘considering rolling stock options’.

The move is the latest in a flurry of open access applications from the private sector, which have been made as the Government moves ahead with nationalising all remaining contracted passenger operators, starting with South Western Railway in May.

First has already gained open access rights between London and Stirling, and wants to extend its London-Edinburgh Lumo route to Glasgow.

FirstGroup chief executive officer Graham Sutherland said: ‘Growing our open access rail portfolio is a key priority for FirstGroup. 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.’

Reader Comments:

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  • david C smith, Bletchley

    It might be of interest to compare Euston - Manchester, with just one operator , Avanti, with Euston - Birmingham, where there are three operators, London North Western / Avanti / Chiltern. How does the existence of potential for competition affect the public service quality and fare levels ?

  • david C smith, Bletchley

    It seems that competition between operators can bring benefits , as witness the ECML. We can discuss the economic issues in theory , but it would be quite interesting to observe the likes of Virgin trains / First group / etc . competing between major cities , sometimes with very similar offerings, sometimes setting out to win different market segments ( one operator to the "value for money "segment, whilst another to those who want high speed and frequency , for example).

    On the other hand , there are service patterns that involve local journeys in the urban / suburban / commuter areas that are natural monopolies with captive markets, usually in and around the big cities, which cannot rely on competition as a motivating principle. Public ownership is needed here, perhaps headed in each city - region by a directly elected "commisioner"( similar to the already existing Police and Crime Commissioners ?).

    There was an investigation into these areas some ten years or so ago, by the Competition and Markets Authority which makes for interesting reading.

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