- FirstGroup
- 05 December 2024 09:44:40
Source: Sharecast
FirstGroup, which already operates two open access operators, Hull Trains and Lumo, said that the new service is expected to be introduced in December 2027 and run for at least 10 years.
Five trains will run under the Lumo brand between Carmarthen and Paddington each day, calling at intermediate stations including Bristol Parkway, Newport and Cardiff Central.
Open access operators buy access rights to routes on the railways, operating independently from – and often competing with – larger franchised operators who hold contracts with the government to run services.
FirstGroup has pencilled in £50m in annual revenues from the service after two years of operation, with a low double-digit operating margin. It is expected to create around 100 direct jobs.
FirstGroup also announced on Thursday that it hopes to expand the service with additional routes to Paignton in Devon, and has submitted an application to the Office of Rail and Road to start the service from May 2028.
"Growing our open access rail portfolio is a key priority for FirstGroup," said FirstGroup's chief executive Graham Sutherland.
"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."
Shares in FirstGroup were down 0.3% at 153.4p by 0931 GMT.