LONDON: FirstGroup plc has announced the acquisition of Grand Union Trains GWML Holdings Limited, which holds track access rights for a new open-access rail service between Carmarthen and London Paddington. Additionally, FirstGroup has applied to the Office of Rail and Road (ORR) to expand this service with extra routes to Paignton, Devon.
New Carmarthen to London Paddington Service
The new service between London Paddington and Carmarthen is expected to start in December 2027 and continue until at least the end of 2037. This service will offer customers affordable travel on the South Wales route and increase capacity on the line. The Group predicts annual revenues of approximately £50 million after two years of operation, with a low double-digit operating margin.
FirstGroup has also submitted an application to the ORR to add five more return trips daily between London Paddington and Paignton.
Key Features of the New Service
The acquisition includes subsidiary Grand Union Trains No. 2 Limited, which has track access rights to run services between London Paddington and Carmarthen starting in December 2027 for ten years. There will be five daily services, stopping at stations like Bristol Parkway, Newport, Severn Tunnel Junction, Cardiff Central, Gowerton, and Llanelli. Passengers can expect low fares, free Wi-Fi, and onboard catering, all in one class. This service will add much-needed capacity and provide new connections, including the first direct service to London from Severn Tunnel Junction and Gowerton.
The service will operate under the Lumo brand, which has successfully connected London and Edinburgh since 2021, contributing to a shift from air to rail travel. Lumo and Hull Trains have already generated up to £1.4 billion in economic benefits for communities along their routes, and the new service aims to bring similar benefits to South Wales.
The Group expects the new service to create around 100 direct jobs. Rolling stock options are being considered, and further updates will be provided.
Expansion to Paignton
FirstGroup has also applied for track access rights to include five return Lumo services between London Paddington and Paignton, starting in May 2028. This will include stops at Bath Spa, Bristol Temple Meads, Taunton, Exeter St David’s, and Torquay. The new service aims to boost tourism and support job growth in the Torbay area, which currently has limited rail connectivity to London.
FirstGroup CEO Graham Sutherland emphasized the company’s commitment to expanding its open-access rail portfolio. He highlighted that the new Carmarthen to London Paddington service will significantly increase FirstGroup’s capacity and contribute to economic growth in the region. If successful, the Group’s current applications will nearly triple their open-access capacity in the coming years.