New operator for key Welsh rail service to London

A rival south Wales to London rail service to First Great Western has a new operator. Grand Union Trains, which secured approval to run an open access service from Carmarthen to London Paddington from the Office of Rail and Road two years ago, has sold the new route to transport giant FirstGroup.

The daily service is expected to launch in 2027. It follows on from Grand Union’s also selling its open access rights for a new Stirling to Euston (London) train service to FirstGroup in September. That service is scheduled to start next May.

The value of the south Wales to Paddington 10-year licence deal has not been disclosed. However, it is understood that Grand Union had explored striking a deal with the Welsh Government’s transport body, Transport for Wales. TfW, which operates services on the Wales & Borders network. For the latest analysis of the biggest stories, sign up to the Wales Matters newsletter here.

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The strong projected passenger numbers between south Wales and London, including higher paying first class commuting customers, could have reduced the level of rail operating public subsidy TfW receives from the Welsh Government. One of the barriers to a possible deal was that the cost of new rolling stock for the route, through a leasing deal, would have been scored against the Welsh Government’s block grant due to a ONS classification.

FirstGroup will keep to Grand Union’s aim of launching the service in December 2027. It will confirm an order for new rolling stock in due course. Grand Union were looking to secure a leasing deal of around £110m, financed over 10 years, for four five-car trains built by Hitachi.

Grand Union had planned for five trains a day in both directions from Carmarthen to Paddington, stopping at Llanelli, Gowerton, Cardiff Central, Newport, Severn Tunnel and Bristol Parkway. They also planned was to add a stop at Cardiff Parkway, if the proposed mainline train station on the outskirts of the capital at St Mellons is realised.

The Welsh Government is still “actively considering” the project for planning with its integrated 900,000 sq ft business park.

Confirming the sale of its Carmarthen to London route managing director of Grand Union, Ian Yeowart, said: “We are confident that the strength and experience of FirstGroup with its experienced and focused management and delivery team, alongside the award-winning provision of its current open access operations, will provide an excellent service for passengers.”

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