Global law firm Ashurst has advised Hitachi Rail on a ten year contract with FirstGroup and Angel Trains to lease 14 new five-car Hitachi electric and bi-mode trains, with the capability to convert to battery electric trains, at a cost of c.£500 million including maintenance.
The trains, which support the green transition of rail, will be used on FirstGroup's open access rail services, including the Carmarthen-London route, and the existing Hull Trains and Lumo services on the East Coast Mainline. Delivery of the new trains, which is expected to commence in late 2027, will also help retain critical skills and secure jobs at Hitachi's Newton Aycliffe facility in County Durham where the vehicles will be manufactured.
The agreement will not only give FirstGroup a homogenous fleet across its open access operations and provide flexibility and reliability for customers, but also facilitates FirstGroup's strategic objective of materially increasing its open access capacity. The trains will be financed by Angel Trains, adding to their portfolio of Hitachi assets.
The agreement gives FirstGroup the ability to invest another £460 million, with options on a further 13 five-car trains, to bolster further open access applications. Open access rail operators are set up with solely private investment and take full commercial risk and opportunity.
The Ashurst team was led by rail partner Naomi Horton, supported by senior associate Rachael Chapple, associate Elizabeth Hoyle and trainee Ruby Wilson.
Commenting Naomi Horton said: "We are delighted to have supported our long-standing client Hitachi Rail in this significant milestone, marking a pivotal step in the green transition of the UK rail industry. The collaboration with FirstGroup and Angel Trains exemplifies the power of strategic partnerships in driving innovation and delivering substantial benefits to both the economy and the environment. This deal represents an exciting step forward for open access in the context of the Public Ownership Act bringing franchised passenger rail services into government ownership and control."
