Burges Salmon Champions Transformational £500m Rail Deal
Independent UK law firm Burges Salmon has once again proven its expertise in transport law, advising FirstGroup plc on two landmark deals that aim to revolutionise rail travel in the UK. These agreements promise not only to enhance connectivity but also to deliver significant economic benefits, securing jobs and fostering community inclusion.
At the heart of these developments is FirstGroup’s acquisition of Grand Union Trains GWML Holdings and its subsidiary, Grand Union Trains No. 2. This move sets the stage for the first direct open-access rail service between Carmarthen and London Paddington. Simultaneously, a £500 million collaboration between FirstGroup and Hitachi will see the production of 14 state-of-the-art trains, underscoring the UK’s commitment to modern, sustainable transport solutions.
Pioneering New Routes
Burges Salmon’s multi-disciplinary Transport team played a pivotal role in guiding FirstGroup through the acquisition process, ensuring seamless integration of the new service. The Carmarthen-to-London Paddington route is poised to become a game-changer, offering passengers a direct, affordable option that prioritises accessibility and environmental sustainability.
The new service will provide approximately 400 million annual seat miles, creating around 100 direct jobs. Not only does this initiative mark a significant milestone in Wales’ rail history, but it also highlights FirstGroup’s commitment to bridging transport gaps and connecting underserved regions. For the communities along the Severn Tunnel Junction and Gowerton, this route is more than just a train service—it’s a lifeline.
Driving Economic Growth with Hitachi
Complementing the new route is the £500 million agreement between FirstGroup and Hitachi to build 14 cutting-edge trains. These battery-electric or bi-mode trains will be manufactured at Hitachi’s County Durham factory, securing hundreds of jobs and injecting a much-needed economic boost into the North East of England.
These trains, set to operate on routes including Hull Trains, Lumo, and the newly unveiled Carmarthen-London service, are designed with sustainability at their core. By reducing emissions and operating efficiently, they embody the forward-thinking ethos that the UK’s transport sector desperately needs.
The announcement, made by the UK Prime Minister, highlights the government’s confidence in the partnership’s ability to transform rail travel. For passengers, this means not just a smoother journey but also a greener one, reinforcing rail’s role as a cornerstone of sustainable transportation.
A Trusted Partnership
Leading the Burges Salmon team on these landmark projects was Brioney Thomas, Partner and Head of the Transport sector group. She was supported by directors Julie Book and Chris Lewis, whose combined expertise ensured the deals’ successful execution.
“Our deep understanding of the transport sector, particularly rail, and our strong relationship with FirstGroup allowed us to handle these complex deals seamlessly,” Thomas remarked. “FirstGroup’s ambitions to bridge the transport divide demonstrate how pivotal transport is as a tool for social mobility. These new services, supported by top-tier infrastructure, offer communities meaningful opportunities to stay connected.”
Christy Baker, General Counsel at FirstGroup, echoed this sentiment: “Growing our open-access rail portfolio is a key priority. The introduction of the Carmarthen-to-London route, alongside our partnership with Hitachi, significantly strengthens our footprint. These initiatives offer passengers more choices, particularly affordable and eco-friendly travel options. Burges Salmon’s expertise has been invaluable throughout these transformative deals.”
Burges Salmon’s Transport Expertise
Burges Salmon’s transport team has been a stalwart in the industry for over two decades, advising on everything from funding and operations to development and dispute resolution. With one of the largest teams of rail specialist lawyers in the UK, the firm has been at the forefront of shaping the rail sector’s future.
Their portfolio includes high-profile projects such as supporting FirstGroup’s national bus fleet and infrastructure decarbonisation programme. This legacy of excellence underscores their ability to navigate complex legal frameworks and deliver results that align with clients’ strategic goals.
A Boost for Communities
Beyond the economic and environmental benefits, these deals represent a significant step toward fostering social inclusion. By connecting Carmarthen and London, FirstGroup is breaking down barriers for communities that have long been underserved by direct rail services. Affordable fares and high-quality infrastructure make this initiative a win-win for passengers and policymakers alike.
Meanwhile, Hitachi’s investment in County Durham underscores the importance of domestic manufacturing in creating sustainable transport solutions. Securing jobs in the North East while delivering world-class trains strengthens the UK’s position as a leader in rail innovation.
Moving Forward
These transformative deals mark a turning point in the UK’s transport sector. With Burges Salmon’s legal expertise and FirstGroup’s vision, the future of rail looks brighter, more connected, and decidedly greener.
For communities across Wales and England, this isn’t just about trains; it’s about creating opportunities, driving growth, and building a sustainable legacy.