FirstGroup Wins £3B London Overground Contract with TfL: Operational Shift

FirstGroup wins a major £3 billion contract to operate the London Overground. The deal with TfL expands FirstGroup’s role in vital railway services.

FirstGroup Wins £3B London Overground Contract with TfL: Operational Shift
December 10, 2025 1:01 pm
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FirstGroup Secures £3 Billion London Overground Concession in Major TfL Deal

Transport for London (TfL) has selected FirstGroup as the preferred operator for the London Overground network in a significant concession contract valued at approximately EUR 3.5 billion (GBP 3 billion). This award marks a substantial expansion of FirstGroup’s operational footprint within the UK capital’s public transport landscape.

Key EntityCritical Detail
OperatorFirstGroup (First Rail London)
NetworkLondon Overground
Contract ValueEUR 3.5 Billion (GBP 3 Billion)
Commencement DateMay 3, 2026
Initial Term8 years
ClientTransport for London (TfL)

New Era for London Overground Operations

First Rail London, a subsidiary of FirstGroup, is set to assume operational responsibility for the London Overground from May 3, 2026. The initial contract duration is eight years, with an option for TfL to extend it by an additional two years. This concession model ensures TfL retains full revenue risk and retains control over service level specifications, while FirstGroup will be accountable for the day-to-day management and delivery of services.

Operational Scope and Guarantees

Under the terms of the new agreement, FirstGroup will manage a comprehensive range of responsibilities for the London Overground network. This includes [Specific operational responsibilities would be listed here if provided in source text, e.g., “service delivery, maintenance, and passenger experience enhancements”]. To underpin its commitment, FirstGroup will provide a performance guarantee amounting to EUR 35 million and a corporate guarantee of EUR 95 million, as stipulated by TfL.

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Strategic Impact and Sustainability Goals

The award significantly strengthens FirstGroup’s strategic position as a key transport partner for TfL, building upon its existing operations in bus, tram, and cable car services. Graham Sutherland, CEO of FirstGroup, expressed enthusiasm for the selection, stating, “London Overground has significantly improved connectivity in London, with around four million passengers per week. We are delighted to be selected as the preferred operator and look forward to welcoming the employees who will be joining us and contributing to the success of this essential network.” The partnership also aligns with TfL’s ambitious environmental targets, with FirstGroup committed to working collaboratively to reduce the carbon footprint of the entirely electric-train network, supporting TfL’s goal of achieving a 90% reduction in Scope 1 and 2 emissions by 2030.

London Overground Network Overview

Launched in 2007, the London Overground network plays a crucial role in connecting outer London boroughs, serving an estimated four million passengers weekly. The network comprises [Specific network details would be listed here if provided in source text, e.g., “multiple lines spanning X kilometres and serving Y stations”]. FirstGroup, with over 25 years of extensive experience in operating diverse passenger rail services across the UK, including government-contracted routes like Avanti West Coast and Great Western Railway, and open-access services such as Hull Trains and Lumo, is well-positioned to manage and enhance this vital London infrastructure.