20th Jul 2016 14:39
LONDON (Alliance News) - FirstGroup PLC Wednesday said Wednesday that its First Transit business in the US has been awarded a contract to operate and maintain the A-train commuter rail service by the Denton County Transportation Authority.
The A-train is a 21 mile regional rail system connecting the Denton and Dallas Counties in Texas.
The new contract agreement covers a period of nine years with an additional five-year option and will earn revenues of around USD9 million per year. It will go into effect from the beginning of October.
FirstGroup said it is continuing to explore opportunities for future growth and noted that the US rail sector offers a number of potential opportunities in a market that is increasingly focused on outsourcing.
"We are very pleased that the Denton County Transit Authority has awarded us the contract for A-train service; our first rail contract in North America. This contract for A-train service represents an exciting new development for the group and we welcome the opportunity to develop and share our rail expertise with a progressive partner such as the Denton County Transportation Authority," said Chief Executive Tim O'Toole in a statement.
Shares in FirstGroup were up 0.3% at 100.60 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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