First Group wins Overground operating contract

Transport for London (TfL) has awarded the next contract for the operation of its Overground lines to First Rail London Ltd. Existing operator Arriva Rail London will step down on 3 May 2026. The new contract will run for eight years with the option to extend to 10. TfL specifies the service level to be provided on each line with First to be responsible for service operation and management of stations. TfL retains the passenger revenue risk. First Group is estimating the contract is worth £3bn over 10 years., It must lodge a £30M performance bond. The contractor can earn a profit margin on cessionary fares and additional fees depending on operational performance, customer satisfaction and the level of ticketless travel. First will co-operate with infrastructure Network rail and rolling stock builder Alstom to maintain performance and customer satisfaction.