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Stagecoach wins railway franchise Stagecoach wins railway franchise
(10 minutes later)
Bus and rail firm Stagecoach has been awarded the contract to operate rail routes in England's East Midlands.Bus and rail firm Stagecoach has been awarded the contract to operate rail routes in England's East Midlands.
The Department for Transport (DfT) said the new franchise would begin in November and run until April 2015.The Department for Transport (DfT) said the new franchise would begin in November and run until April 2015.
However, the DfT has the right to end the deal after six years if Stagecoach fails to meet performance targets.However, the DfT has the right to end the deal after six years if Stagecoach fails to meet performance targets.
The DfT will pay a subsidy to the firm in the early years of the deal although over the contract Stagecoach will pay the DfT a total of £133m.The DfT will pay a subsidy to the firm in the early years of the deal although over the contract Stagecoach will pay the DfT a total of £133m.
Combined routes
Stagecoach is headed by Scottish tycoon Brian Souter, whose company, which began with two buses in Perth, now employs 31,000.
Stagecoach UK fleet of 7,000 buses and coachesBus network from Devon to HighlandsUS fleet of 2,800 coachesOwns UK South Western rail franchiseOperates Sheffield supertram systemPartner in Virgin Rail Group
The new franchise is a combination of the existing Midland Mainline services from London's St Pancras and the eastern section of Central Trains.
The service includes a new hourly service between Kettering and London, and an agreement in principle to extend this service to a new station at Corby from December 2008.
It is also estimated that journey times between Sheffield, Derby and London will be reduced, saving up to 12 minutes on an average journey between London and Sheffield.
Other promised improvements include £5m being spent on upgrading stations, at least 1250 extra car parking spaces and the introduction of smart card technology by 2010.