National Express lands £1bn German contract
BIRMINGHAM-based public transport group National Express has strengthened its presence in Germany with a £1bn contract win.
The company said the Bavarian passenger transport authority (BEG) had confirmed it as the preferred bidder to operate all of Nuremberg’s S-Bahn rail services. The decision follows a competitive tender.
The two 12-year contracts are to operate the whole of the S-Bahn Nuremberg network, covering five rail lines in one of the most prosperous parts of Bavaria – Germany’s second most populous state. The contract is expected to generate revenues in excess of £1.05bn (€1.4bn) over the life of the agreement.
The S-Bahn service is currently operated by Deutsche Bahn (DB Regio) and carries more than 20 million passengers per year. National Express will start operating from December 2018 and will buy 38 new electric five car trains on behalf of the Bavarian passenger transport authority.
S-Bahn services, which are broadly comparable to London’s Overground network, operate in all major German metropolitan areas. This contract win follows National Express’ success in 2013 in winning two regional rail routes in North Rhine-Westphalia. These services will begin operation in December this year.
Dean Finch, National Express Group Chief Executive said: “National Express is delighted to have won another rail contract in Germany, confirming this market as an exciting growth opportunity for the Group. This new rail contract in Bavaria, which builds on our earlier success in North Rhine-Westphalia, is further evidence that our track record in running the UK’s leading rail franchise is recognised internationally. We look forward to providing passengers in the Nuremberg region with a high quality rail service for many years to come.”
The two contracts cover the five lines that make up the Nuremberg S-Bahn. The five lines serve routes from Nuremberg to Erlangen and Bamberg, Ansbach, Roth, Allersberg, Neumark, Altdorf and Hartmannshof.
The five lines serve a region of almost 1.5 million inhabitants.
National Express will organise the procurement process on behalf of the local authority. However, similar to the UK, the new trains will be procured by a rolling stock lessor and leased by National Express for the duration of the franchise.
With the exception of a small service in Bremen, all S-Bahn services across Germany have so far been operated by Deutsche Bahn. Today’s announcement means National Express is therefore the first overseas operator of a significant German S-Bahn.
Combined with the group’s previous contract wins, by 2019 National Express will be the seventh largest (out of 30) operator by train kilometres operated per year. The combined figure for its North Rhine-Westphalia and Nuremberg services will be 12.4 million train kilometres a year.
