Two-year London Overground contract extension awarded to Arriva

Credit: Arriva Group

Arriva Group’s train operating company (TOC), Arriva Rail London (ARL), has been granted a two-year extension as the delivery partner for the London Overground concession, which is operated with Transport for London (TfL).

Arriva has operated the London Overground network since November 2016 and, following the contract extension, is expected to do so up to May 2026. The announcement brings continuity for 430,000 passengers who use ARL’s trains every day and builds on Arriva’s record of delivering improvements for London Overground customers, working in partnership with TfL to provide more frequent services, new trains and improved interchanges.

The contract extension is also good news for ARL’s 1,500 employees who serve Londoners and see themselves as part of the community.

ARL successfully supported TfL during the COVID-19 pandemic, and the London Overground has now recovered to 88% of pre-pandemic passenger journeys. During the term of ARL’s contract, the operator has also implemented a number of service improvements, such as the extension of the Gospel Oak to Barking Riverside route and the introduction of four-car trains, which doubled the line’s capacity.

David Brown, Managing Director of Arriva UK Trains, commented: “We are incredibly proud of our performance record and of our relationship as a critical delivery partner to Transport for London.  We play a significant role in London life, connecting communities and being part of one of the most mature, sophisticated and inter-connected transport networks in the world. With this contract extension, we can continue to work in close partnership and deliver innovative and cost-efficient solutions to keep the capital city moving”.

Rory O’Neill, TfL’s General Manager for London Overground, said: “I am very proud of everything that we have achieved at London Overground, but that would not be possible without the close collaboration with Arriva Rail London. There has been a great deal of change, not only at London Overground but in the rail industry, since the pandemic but ARL, supported by TfL, has risen to the challenge as we adapt to changing customer travelling habits. We continue to welcome growing numbers of customers back and, with the help of ARL, will build on that success.”

Arriva Rail London operates under the ‘concession model’, which means that TfL takes revenue risk, while the operating company receives a fixed payment with adjustments made according to performance.

Arriva Group has extensive operating experience across a number of different types of rail operating models through its UK Trains division, which includes Chiltern Railways, CrossCountry, Grand Central and Arriva Rail London. It is the only owning group to have experience with all contract types currently in use on Britain’s railway, including national rail contracts, a concessionary contract, an Open Access company under the Grand Central brand, and a rail maintenance business, Arriva Traincare.

The new contract comes into effect in May 2024 and will see ARL building on its track record of maintaining some of the highest levels of performance in the country as TfL’s delivery partner, while increasing its passenger numbers.  London Overground was one of the first networks to restore services to 100% following COVID-19.  It has also received the lowest level of customer complaints of any train operating company over the past two years.