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Burges Salmon Advises FirstGroup on £500m Train Deal with Hitachi to Boost Rail Connectivity

Independent UK law firm Burges Salmon has supported FirstGroup plc on two landmark projects that will strengthen rail connectivity, foster economic growth, and enhance social inclusion by linking communities across Wales and the UK.

Burges Salmon’s Transport sector group provided expert advice on FirstGroup’s acquisition of Grand Union Trains GWML Holdings and its subsidiary, Grand Union Trains No. 2. This acquisition paves the way for a new open access rail service between Carmarthen and London Paddington. The service will establish the first direct connection between Wales and London from the Severn Tunnel Junction and Gowerton, offering passengers affordable fares across approximately 400 million annual seat miles.

This initiative is projected to create around 100 direct jobs while supporting wider economic development. It also highlights Burges Salmon’s ongoing commitment to guiding transformative transport projects, ensuring long-term benefits for clients and communities alike.

In parallel, and to support the delivery of the new open access route, a £500 million deal struck between FirstGroup and Hitachi was unveiled by the UK Prime Minister last Friday to build 14 state-of-the-art trains at a County Durham factory, with the battery electric or bi-mode new trains used on FirstGroup’s routes including Hull Trains, Lumo, and the newly unveiled route from Carmarthen to London. The agreement is expected to secure hundreds of jobs and provide a significant economic boost to the North East of England.

The Burges Salmon team advising FirstGroup on the two projects was led by Brioney Thomas, partner and head of the firm’s Transport sector. She was supported by directors Julie Book and Chris Lewis. Brioney comments: “Our expertise of the Transport sector, particularly rail, combined with our strong relationship with FirstGroup, uniquely positioned us to manage these two hugely significant deals seamlessly. FirstGroup’s ambitions to bridge the transport divide underline the pivotal role of the transport sector as a key social mobility tool, with new services, supported by high-quality, sustainable and brand-new infrastructure, that provide significant opportunities for communities to become and remain truly connected.”

Christy Baker, General Counsel at FirstGroup, adds: “Growing our open access rail portfolio is a key priority for FirstGroup and the introduction of the new route between Carmarthen to London Paddington, alongside our unique partnership with Hitachi, significantly bolsters our footprint, offering customers more choice as they consider affordable, environmentally friendly modes of travel in the future. We’d like to thank Burges Salmon for their support and advice on what are two significant and transformational deals for our business and our customers. No matter the size or complexity, Brioney and the team never fail to demonstrate their expertise, impressive understanding of the sector and their ability to adapt to new developments and challenging timescales.”

Working across the entire Transport sector, including rail, highways, road transport, aviation and marine and ports, Burges Salmon’s strength and depth of expertise covers all aspects of transport law, from funding and operations to construction, development and disputes. The firm has played a leading role in the rail industry for over 20 years and has assembled one of the largest teams of rail specialist lawyers in the UK, advising on the most important cases affecting the industry. FirstGroup is a longstanding client of Burges Salmon and the firm played a key role in supporting the group on its national bus fleet and infrastructure decarbonisation programme.

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