THE freight operator First GBRf has been sold to Eurotunnel. The deal follows the purchase of EWS by Deutsche Bahn, and follows months of speculation about First's intentions over its freight arm -- which it acquired almost by accident in 2003.

GBRf had been bought with the rest of Anglia Railways by FirstGroup in an attempt to gain the Greater Anglia franchise when Anglia had been shortlisted in the competition. In the end, the SRA awarded Greater Anglia to National Express, leaving FirstGroup with a failed passenger franchise bidder but also a freight operation, which it has continued to develop as the third largest British freight operator, with its managing director John Smith at the helm.

Eurotunnel said the aquisition was in line with its development strategy and would not increase its debt. Chairman Jacques Gounon said: “Eurotunnel has always been a major link between the UK and France. The acquisition of GBRf is a further expression of our commitment to the United Kingdom and of our confidence in the potential that it holds. Growing concerns about the environment and the increasing need for freight transport over both long and short distances mean that rail freight is a buoyant market”.

Eurotunnel added thar GBRf is a profitable business employing 299 people and generating revenues of £56 million in 2009. It has clients from all sections of the rail freight sector.

The deal signals the end of First's involvement in railfreight. Originally a bus operator, FirstGroup also currently has three passenger rail franchises and the majority share of a fourth, Transpennine Express.