Wedoany.com Report-Dec.12, FirstGroup has been named preferred bidder for the London Overground operating concession, a contract valued at approximately £3 billion ($3.49 billion) over an initial eight-year term, with an option to extend by up to two additional years.

First Rail London will be responsible for operating train services and overseeing station management.

Transport for London (TfL), through its subsidiary Rail for London, selected First Rail London Limited (FRLL), a wholly owned subsidiary of FirstGroup, to operate the network. Services under the new concession will begin on 3 May 2026.

Under the agreement, FRLL will manage day-to-day train operations, station services, customer experience, and ticketless travel initiatives, while TfL retains full revenue risk and determines service patterns and fares.

The contract includes commitments to increase frequencies on the Mildmay and Windrush lines, enhance real-time passenger information, strengthen security measures, and improve accessibility in collaboration with stakeholders.

FRLL will also support TfL's Vision Zero road-and-rail safety programme and contribute to environmental targets, including alignment with TfL's goal of a 90% reduction in Scope 1 and 2 emissions by 2030.

London Overground concession head David Thomas said: "London Overground is one of the most popular parts of our transport network, and this new concession puts customers at its heart, helping make the service even better. We're delighted to welcome First Rail London Limited as our preferred new partner and look forward to working together to deliver a range of benefits for everyone who uses the network."

FirstGroup CEO Graham Sutherland said: "The London Overground has greatly improved connectivity in London, with around four million passengers now using the service every week. We are delighted to have been named as the preferred operator for the service from next May and look forward to welcoming employees who will be joining the Group and to play our part in the success of this vital rail network."

The award follows a competitive procurement process and is subject to the customary standstill period before final contract signature. Upon commencement in May 2026, existing operational staff are expected to transfer to FirstGroup under relevant employment protection regulations.