FirstGroup has been selected as the preferred operator for the London Overground suburban rail network contract, a deal estimated to be worth about £3bn ($3.49bn) over an initial eight-year term.
Transport for London (TfL), through its subsidiary Rail for London, has chosen FirstGroup’s subsidiary, First Rail London (FRLL), for the role, with operations scheduled to commence on 3 May 2026.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The contract includes an option for TfL to extend operations by up to two further years.
Under the terms outlined by TfL, FRLL will be responsible for delivering train services and managing stations. TfL retains all revenue risk and will set service levels.
The contract also places responsibility on FRLL for operational performance, customer service, and facilitating ticketless travel.
Planned improvements in the agreement include increasing services on both the Mildmay and Windrush lines.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLondon 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.”
FRLL is expected to support TfL’s Vision Zero strategy aimed at safer transport, and work with Network Rail, Alstom, and industry partners to maintain performance and passenger satisfaction.
Additionally, FRLL will invest in information systems and staff training, enhance security, improve customer information, and collaborate with stakeholders on accessibility.
The contract requires continued efforts to limit environmental impact from London Overground services.
FirstGroup’s activities will focus on supporting air quality improvement and aligning with TfL’s target of a 90% reduction in Scope 1 and 2 emissions by 2030.
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.”
