Aberdeen-headquartered FirstGroup plc announced it has been named as the preferred operator for the London Overground suburban rail network contract by Transport for London (TfL), acting through its subsidiary, Rail for London Limited.

The London Overground was launched in 2007 to provide better connections between areas outside of central London. TfL took over a series of under-used suburban rail lines and turned them into a high frequency metro-style service.

“The group’s subsidiary, First Rail London Limited (FRLL) will become the new operator from 3 May 2026, with an initial eight-year term contract and an option to extend for up to two additional years at TfL’s discretion,” said FirstGroup.

“Under the terms of the contract TfL retains all revenue risk and will specify the service levels, with FRLL, as the operator, responsible for the delivery of train services and management of stations.

“The contract is estimated to have a value of around £3bn, over eight years plus an optional extension period of two years. FRLL will also be responsible for operational performance, customer service and ticketless travel.

“The group will make use of its long-standing expertise and Rail Services capabilities to work alongside TfL to deliver the next chapter of the London Overground, with a number of key improvements set out in the contract.”

The London Overground has an electric train fleet, and as part of the contract FirstGroup will continue to develop and implement initiatives to reduce the service’s impact on the environment, including improving air quality in line with TfL’s commitment to 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.

“We are an experienced and trusted partner in public transport and look forward to building on our relationship with TfL, for whom we already operate buses, trams and the London Cable Car. Our successful bid for this contract represents another significant step in our strategy to diversify and grow our portfolio, and we will continue to evaluate further growth opportunities like this.”

David Thomas, Head of Concession for London Overground, 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.”