Govia has won the contract to run the West Midlands franchise through a subsidiary named the London Midland Railway.
The Department for Transport awarded it the right to run the franchise from 11 November this year to 19 September 2015, although the DfT has the right to end the contract after six years if performance targets are not met.
The West Midlands franchise combines the current Silverlink County services between London Euston and Northampton with the West Midlands local and regional service groups of Central Trains.
The Government will pay a subsidy of £1,127m over the franchise of seven years and 10 months.
The DfT said the franchise would deliver increased capacity, better performance and the rollout of smartcard technology by 2010.
Benefits for passengers from the franchise would include:
New services, including a new semi-fast service between London and Crewe, and two trains an hour all day between Birmingham and Liverpool and Birmingham and Northampton from December 2008.
• A fleet of 37 new electric Desiro trains by July 2009
• New class 172 diesel trains to replace the class 150 DMUs operating on the Snow Hill line services in the Birmingham area by July 2010.
• £11.5m investment in stations
• 1033 more car parking spaces
• Forecast 90.7 per cent punctuality and reliability by the end of the franchise.
Govia said the franchise was expected to generate revenue of £400 million at the outset, including subsidy payments.
Tony Smith, Govia’s managing director for rail development, said it would be a “dynamic new business”.
“We have chosen the name London Midland to reflect the new franchise’s geographical market. London Midland’s headquarters will be in Birmingham, in recognition of the city’s strategic importance to the franchise.
“Through London Midland we will deliver real improvements to passengers. We have exciting plans for new trains to replace some of the older parts of the fleet. The new fleet will completely transform passengers’ travelling experience and play a key part in enabling us to meet our targets for continuous improvement in punctuality and reliability.”
Govia said the highlights of the franchise also included new passenger information systems and CCTV, automatic loading equipment to monitor train loading, and the operating of the low-energy consumption electric Parry People Mover on the Stourbridge Town line.
A new staff training centre will be provided and training programmes run to help create a single business out of Central and Silverlink. Staff accommodation would also be improved.
Govia has indicated it plans to raise unregulated fares by about three per cent above inflation each year on the London to Northampton route.
