First and Arriva in major rail contract wins as McLoughlin promises "world-class" northern train service

The Government today announces it intends to award the Northern franchise to Arriva and the TransPennine Express franchise to First to oversee over a billion in investment in train services.

First Rail kept control of the TransPennine east-west services in Yorkshire, the North West, North East and Scotland after rival bids from Stagecoach and Keolis. Arriva saw off competition from Abellio, the incumbent operator, and Govia, to take control of the Northern Franchise, the second largest in the country, covering Nottingham, Stoke and Crewe in the south to Newcastle and Carlisle in the north. 

First Rail had seen revenues fell by nearly half in the six months to November with the loss of the First Capital Connect and ScotRail. 

The DfT will jointly manage the franchises with Rail North Ltd, which represents 29 local authorities across northern England.

The two franchise deals will bring new direct services, including from Bradford to Wakefield, Liverpool and Nottingham, from Leeds to Chester and Lincoln, and Liverpool to Glasgow and will see investment in 500 new carriages, banishing the Pacer trains from the routes. The DfT claimed that this can be done with an increase in returns from the franchises, including an end to subsidy for the TransPennine Express route.