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News Category: Rail

Go-Ahead invests in transport skills with target of hiring 1,020 bus and rail apprentices in 2023

19 January 2023

Go-Ahead invests in transport skills with target of hiring 1,020 bus and rail apprentices in 2023

Target includes 700 trainee London bus drivers and 220 rail apprentices

Go-Ahead’s apprentices increase ethnic diversity of workforce

Recruits of all ages wanted: Go-Ahead’s apprentices range from 16 to 65

The Go-Ahead Group, the largest employer of apprentices in the UK transport industry, has set a target of hiring 1,020 apprentices in 2023 to train as bus drivers, rail drivers and engineers.

The intake will include 700 apprentice bus drivers for Go-Ahead London, which runs a quarter of the capital’s buses for Transport for London. Some 220 apprentice engineers and train drivers will be recruited by Govia Thameslink Railway, which operates Thameslink, Southern, Great Northern and Gatwick Express rail. And a further 100 apprentices will work at Go-Ahead’s regional bus companies and in head office roles in London and Newcastle.

Go-Ahead was named as one of the UK’s top 20 apprentice employers recently in a ranking developed by the Department for Education, and as the top provider in the transport industry.

The group’s apprenticeship intake is highly diverse: 61% of apprentices recruited in 2022 were from ethnic backgrounds other than White British, including 78% of those who joined Go-Ahead’s London bus operation. And 32% of new apprentices were aged over 40, including many career switchers who are seeking a new start in transport.

In the bus industry, Go-Ahead London’s Camberwell academy is the first and largest in-house provider of bus driving apprenticeships in the UK and recently celebrated its fifth birthday. The academy uses virtual reality technology to teach driving skills, and trainees alternate over the course of a year between periods driving buses and time in the classroom. Last year 77% of those who started the course completed their apprenticeship and gained a qualification.

Since the training programme was introduced in 2018 the bus company has been able to deliver all aspects of training to their apprentices including offering numeracy and literacy training equivalent to Maths and English GCSEs, and additional support to those with a range of neurodiverse conditions.

A further 466 apprentices are in training at Govia Thameslink Railway, the UK’s largest railway network, working across engineering, driving and customer service roles. In 2022, 184 new recruits began their training- 30% were aged over 40.

“”
We’re proud to be training a new generation of drivers and engineers at Go-Ahead. Apprentices are fundamental to the future of our business and of our industry as a whole – and providing on-the-job learning has helped us to attract people from all walks of life.

We want our workforce and the transport industry to reflect the communities we serve. Our apprenticeships programme is forever expanding, and the vast majority of our apprentices continue their careers with Go-Ahead after their training is completed.

Scott Maynard

Go-Ahead Group HR Director

Go Ahead carries first passengers on major new Bavarian network

12 December 2022

Go Ahead carries first passengers on major new Bavarian network

  • Munich-based network expands Go-Ahead’s footprint in Germany
  • New destinations for Go-Ahead trains include Einstein’s birthplace and Legoland Germany
  • Go-Ahead Germany employs 1,000 people, runs a fleet of 144 trains and operates 20 million rail kilometres annually
  • International growth is at the core of Go-Ahead’s Next Billion Journeys strategy

Go-Ahead has begun operating trains on a major rail network in Bavaria linking Munich with regional towns and cities including Augsburg, Wurzburg and Aalen.

A 12-year contract began on Sunday on six lines previously operated by state-owned Deutsche Bahn. The first train, from Munich to Ulm and Donauwörth, left Munich at 00:06.

The mobilisation is Go-Ahead’s fifth German contract. It marks a significant expansion to Go-Ahead’s German rail business, which employs 1,000 people in Bavaria and Baden-Wurttemberg and comprises a fleet of 144 modern electric trains.

The new network serves 71 stations and will involve running 7.6 million train kilometres annually, bringing Go-Ahead’s total German network to 20 million train kilometres annually.

Among the destinations served under the new contract are Augsburg, world renowned for its medieval canals and water towers; Ulm, which was the birthplace of Albert Einstein; and Gunzburg, a popular family destination for Legoland Germany.

Go-Ahead’s fleet of 56 new Siemens trains have:

  • A top speed of 160 km/h
  • Fully accessible carriages, low floors and wheelchair friendly toilets
  • Flexible compartments with folding seats and spaces for pushchairs and luggage
  • Air conditioning, passenger information systems and charging sockets

Under the German system, Go-Ahead operates using tracks, stations and signals owned and maintained by Deutsche Bahn. Go-Ahead, in common with other third-party operators, pays access fees to Deutsche Bahn for use of the network.

Go-Ahead operates rail services in the UK, Germany and Norway. In its home market, the company is majority owner of Govia Thameslink Railway, which accounts for one in four UK passenger rail journeys.

Under a strategy published earlier this year, The Next Billion Journeys, Go-Ahead set out ambitious plans to grow its revenue by 30% to £4 billion through expansion and home and abroad, taking advantage of modal shift to public transport driven by climate change, digitalisation and urbanisation.

“”
This is an exciting day for Go-Ahead as it takes our rail network to new communities across southern Germany. It’s the culmination of years of work by our German team in getting trains, drivers and other colleagues in place. We’ll be working closely with Deutsche Bahn and the German authorities to deliver the best possible service to customers.

Christian Schreyer, Group Chief Executive, Go-Ahead Group

“”
We are delighted that we can offer modern and sustainable regional rail services with a brand new fleet. Today, I would like to thank my whole team – I’m proud of what they have achieved. We are all committed to, and strive for, a good and reliable quality of service

Fabian Amini, Managing Director of Go-Ahead Bayern

Go-Ahead to deploy 1,000-seat double-decker Siemens electric trains in Bavaria

06 October 2022

Go-Ahead recognised as leading apprenticeship provider

  • Go-Ahead to operate six additional German routes from December under a 12-year contract
  • Double-decker trains coupled together with over 1,000 seats will provide extra capacity for commuters
  • Additional evening services added to timetables

Passengers in Bavaria will benefit from a fleet of brand new Siemens electric trains offering as many as 1,000 seats on board when Go-Ahead begins rail operations on a busy commuter network in December.

Go-Ahead’s German rail company, Go-Ahead Bahn and Bus, will take on operation of six lines previously run by Deutsche Bahn in the Munich area on December 11th. The contract, which is Go-Ahead’s fifth in Germany, runs for 12 years.

The new network serves 71 stations, and will involve running 7.6 million train kilometres annually. In readiness for mobilisation, Go-Ahead has taken delivery of a fleet of 56 Siemens trains with state-of-the art interiors, industry-leading accessibility and extra seats for commuters on busy routes.

The fleet includes double-decker Desiro HC (High Capacity) trains with 500 seats in standard class and 38 in first class. Two trains can be coupled together to provide a total of 1,076 seats on services such as Munich to Augsburg, a particularly popular route. The fleet also includes smaller Siemens Mireo multiple units.

Go-Ahead’s trains, in distinctive blue and white livery, are equipped with sockets and tables, plus space for bicycles, prams and luggage. Wifi will be available on board from 2023.

Go-Ahead began operating in Germany in 2019, initially in Baden-Wurttemberg. Operations expanded to Bavaria with services from Munich to Lindau in 2021. Go-Ahead’s German business employs more than 1,000 people.

“”
Our entire team is very much looking forward to the start of these new services. We are working hard to ensure that everything runs smoothly and that we take passengers reliably and comfortably to their destinations from 11 December.

Fabian Amini, Managing Director of Go-Ahead Bayern

“”
This is another exciting step on our German rail journey. As an international operator, we benefit from sharing best practice between our rail networks. We firmly believe that private sector operation brings innovation and entrepreneurship to rail, to the benefit of passengers.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

The additional routes to be operated by Go-Ahead from December are:

  • RE9 Munich – Augsburg – Ulm
  • RE80 Munich – Augsburg – Treuchtlingen – Würzburg
  • RE89 Munich – Donauwörth – Aalen
  • RB86 Munich – Augsburg – Dinkelscherben
  • RB87 Munich – Augsburg – Donauwörth
  • RB89 Donauwörth – Aalen

Trading update for the year ended 2nd July 2022

11 July 2022

Trading update for the year ended 2nd July 2022

Go-Ahead today provides a trading update for the year ended 2 July 2022 (FY22).

“”
Passenger numbers on public transport have continued to recover from the pandemic and in certain parts of the UK, such as Manchester, our buses are as busy as they were before COVID-19. We are encouraged to see so many people using buses and trains and we expect a busy summer ahead, particularly in tourist areas.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

Our markets

Regional Bus

In our Regional Bus division, we have continued to see a steady recovery in passenger demand, with commercial volumes across the business now over 85 per cent of pre-pandemic levels. In some areas, we have seen particularly encouraging volumes in recent weeks, with pre-pandemic volumes being recorded on some days. These trends give us confidence in the continuation of passenger recovery in the coming months.

The Board now expects Regional Bus to deliver operating profit before exceptional items ahead of that of the prior two years.

London & International Bus

Our London & International Bus division will benefit from performance that is ahead of plan in London and Singapore, including better than anticipated Quality Incentive Contract (QICs) payments in London In Sweden, Flexbuss, which we acquired in April 2022, is trading positively and in line with our expectations.

The Board now expects the division to deliver operating profit before exceptional items at least in line with pre-pandemic underlying profitability levels (2019: £51.2m).

UK Rail

Following the successful commencement of GTR’s new National Rail Contract on 1 April 2022, the Board expects UK Rail to deliver operating profit before exceptional items within the range set out in the Group’s interim results of £25m – £30m.

International Rail

In Germany, we continue to progress our improvement plans in Baden-Württemberg, although financial penalties relating to operational performance have been slightly higher than anticipated in the period. Following discussions with our client in Baden-Württemberg, we are pleased to have reached a memorandum of understanding which will result in a modest improvement to the financial performance of the contract over its life. Further negotiations remain underway.

The first of two contracts in Bavaria started on 12 December 2021 and the second will commence in December 2022. Following the successful mobilisation of the first contract, performance has been in line with our expectations.

Mobilisation of the second contract in Bavaria remains underway ahead of its commencement in December 2022. As previously indicated, there are inherent uncertainties and risks associated with the mobilisation of this contract and in estimating the impact of key success factors including driver recruitment. As part of our year end procedures, we will be carefully reviewing the projections for the second contract in Bavaria and assessing the requirement for any potential further provision.

As announced on 28 June 2022, a new agreement was reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract. Under the original contract, which began in December 2019, the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the Norwegian Government provided financial support to rail operators, preventing material losses.

The amended contract takes effect from 1 July 2022 and runs for the duration of the original contract, until December 2027 (plus a two-year extension option until December 2029). The contract provides a revenue support scheme until the end of the contract. The amended contract also includes an incentive scheme linked to revenue growth. As a result of these improved contractual arrangements, the Group expects to significantly reduce the £66.2m onerous contract provision relating to its rail operation in Norway in its full year results for the year ending 2 July 2022.

The Board expects International Rail to deliver an operating loss before exceptional items within the range set out in the Group’s interim results of £15m – £20m.

Balance sheet and liquidity

The Group has a strong balance sheet and maintains good liquidity. The Board continues to expect FY22 adjusted net debt/EBITDA to be at the lower end of the 1.5 to 2.5 times range, significantly below the 3.5 times bank covenant.

Overall performance

Overall, the Group expects to report a good performance for the year ended 2 July 2022.

Certain statements in this announcement constitute profit estimates for the purposes of Rule 28 of the City Code on Takeovers and Mergers. Further details on the basis of preparation of the profit estimates and certain confirmations from the directors of Go-Ahead in relation to the profit estimates can be found in the scheme document published by Go-Ahead dated 11 July 2022 which is available at https://www.go-ahead.com/investors/offer.

Go-Ahead named top apprenticeship employer in the UK transport industry

29 June 2022

Go-Ahead named top apprenticeship employer in the UK transport industry

  • Go-Ahead hires more than 1,100 apprentices annually across its bus and rail operations
  • Transport operator ranked 13th on list of the UK’s Top 100 apprentice Employers
  • Ranking puts Go-Ahead top of six transport companies in the league table

The Go-Ahead Group has been named as Britain’s top provider of transport apprenticeships in a ranking developed by the Department for Education.

The ‘Top 100 Apprenticeship Employers’ list is intended to help future apprentices, parents and careers advisers to identify apprenticeship opportunities at the country’s leading employers.

Go-Ahead ranks 13th overall on the list, and is top in the transport industry – ahead of Hays Travel, Network Rail, Stagecoach, Abellio and Southeastern.

The company takes on 1,100 apprentices annually – making it the biggest employer of apprentices in the public transport industry.

More than 700 apprentices are presently training to be London bus drivers at Go-Ahead London’s academy in Camberwell. Go-Ahead London was named Macro Employer of the Year for London in the 2021 National Apprenticeship Awards.

A further 450 apprentices are in training at Govia Thameslink Railway, the UK’s largest railway network, working across engineering, driving and customer service roles.

Go-Ahead’s apprenticeship program is highly diverse. Nearly a third of recruits are over 50 years old. Women account for 37% of rail apprentices and 17% of bus apprentices – a significantly higher proportion than can be found across the transport industry as a whole. And two thirds of Go-Ahead London’s apprentices are from ethnic minority backgrounds.

“”
Apprenticeships are a great way to begin a career in transport, whether it may be driving a bus, training to be an engineer, working in customer services or driving a train.

Our apprenticeship program is preparing a new generation of people to operate public transport across Britain and we view it as a crucial investment in the long-term success of our company. We’re very proud that Go-Ahead has been named as one of the country’s top apprenticeship employers.

Scott Maynard, Group HR Director, The Go-Ahead Group

The ‘Top 100 Apprenticeship Employers’ list is published by the Department for Education in partnership with High Fliers Research, which independently assesses and ranks the nation’s top apprenticeship employers.

Go-Ahead agrees revised rail contract in Norway

28 June 2022

Go-Ahead agrees revised rail contract in Norway

The Go-Ahead Group is pleased to announce that, following discussions over a number of months, a new agreement has been reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract.

Under the original contract, which began in December 2019, the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the Norwegian Government provided financial support to rail operators, preventing material losses.

The amended contract takes effect from 1 July 2022 and runs for the duration of the original contract, until December 2027 (plus a two-year extension option until December 2029).

The contract provides a revenue support scheme until the end of the contract. The amended contract also includes an incentive scheme linked to revenue growth.

As a result of these improved contractual arrangements, the Group expects to significantly reduce the £66.2m onerous contract provision relating to its rail operation in Norway in its full year results for the year ending 2 July 2022.

“”
We’re pleased to have reached an agreement with the Norwegian Government which puts our rail contract onto a satisfactory footing.

We’re proud of our colleagues at Go-Ahead Nordic who deliver an outstanding service and who have achieved the best customer satisfaction ratings on Norway’s railway network

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

National Rail Contract awarded to Govia Thameslink Railway

25 March 2022

National Rail Contract awarded to Govia Thameslink Railway

The Go-Ahead Group today announces that the Department for Transport (DfT) has awarded a National Rail Contract (NRC) to Govia Thameslink Railway (GTR) to continue operating the Thameslink, Southern and Great Northern rail services, the UK’s largest railway network.

Contract highlights

The new contract commences on 1 April 2022 and will run until at least 1 April 2025, with up to a further three years at the Secretary of State’s discretion.

The NRC, like the Emergency Recovery Measures Agreement (ERMA) contract it will replace, is a management contract which has extremely limited exposure to changes in passenger demand and no substantial cost risk to GTR.

GTR will earn a fixed management fee of £8.8m per annum (equivalent to a margin of 0.5% of GTR’s cost base) to deliver the contract, with an additional performance fee of up to £22.9m per annum (equivalent to an additional 1.35% margin).  Subject to the achievement of performance targets set by the DfT, the maximum fee receivable by GTR would therefore be £31.7m per annum (equivalent to a margin of around 1.85%). All figures are on a pre-IFRS 16 basis.

The contract also allows for individual project fees to be earned by GTR on the delivery of additional initiatives as directed by the DfT.

Background
Since 2014, Govia Thameslink Railway has operated Southern, Thameslink, Great Northern and Gatwick Express, which delivered 349 million passenger journeys annually prior to the COVID-19 pandemic. GTR manages 235 stations in London and the south-east of England and employs 7,400 people.

The NRC serves as a bridge to the future Passenger Services Contracts intended to be let and managed by Great British Railways in line with the Williams-Shapps Plan for Rail, announced in May 2021.

During the NRC period, GTR will focus on encouraging more people to return to rail following the pandemic. It will continue to further improve the customer experience, with dedicated funds available for localised station enhancements, for customer and community led projects, and for projects to remove barriers for disabled people at more of its stations. GTR will continue to improve punctuality and reliability through close collaboration with Network Rail.

Building on its already strong environmental credentials, GTR is aiming to become an even greener train operator, working towards phasing out its diesel fleet by 2035, introducing its first zero emission ancillary vehicles in the next 12 months, and aiming to increase recycling rates to 80 per cent over the next three years.   Expanding on its successful apprenticeship programme, GTR will increase apprenticeship opportunities – aiming for 2.5 per cent of its workforce to be new apprenticeship starts. Acknowledging the value of diversity, GTR will set targets aimed to build on its positive work to increase female and ethnic minority representation amongst both train driver recruits and in engineering/technical apprenticeships.

Go-Ahead’s subsidiary, Govia (Go-Ahead 65%, Keolis 35%), has operated GTR since it was created in 2014.  With its industry partners it worked to deliver the Thameslink Programme which has transformed journeys to, through and within London.   More than 1,500 new railway carriages (replacing some of the country’s oldest fleets), over 1,000 station improvement projects and industry leading smartcards and tools, have all been delivered for customers.  Performance has improved with a steady increase in customer satisfaction over a five year period.  Last year Southern was named Passenger Operator of the Year at the National Rail Awards, with Great Northern as runner up.  GTR’s support for the growth and wellbeing of the communities it serves has included a successful partnership with the Prince’s Trust that has enabled rail careers for 120 young people from challenging backgrounds, suicide prevention training for colleagues that has led to a 57% increase in life saving interventions, and the biggest roll out of life saving defibrillators on the UK rail network, with one available at every station.

“”
As the UK’s largest rail operator, I know GTR will play a key role helping the Government continue delivering our Plan for Rail and revolutionise the lives of passengers.

With their plans for improving the punctuality, reliability and accessibility of their services through close collaboration with Network Rail, we are proud to partner with GTR to create a truly passenger focused service

Wendy Morton, Minister for Rail

“”
I’m delighted with today’s announcement. Under this new contract we will build on our achievements in enhancing performance in recent years. We will be working closely and collaboratively with DfT, NR and other partners to run the most reliable service possible, and we will be putting passengers’ interests first.

A top priority is to build passenger numbers back after the COVID-19 pandemic. Go-Ahead will bring commercial acumen and international experience to bear in encouraging people back to the railways.

Christian Schreyer, Go-Ahead CEO

“”
We’re pleased that the hard work of the team at GTR – especially over the difficult past few years – has been recognised. We are particularly heartened by the commitment of an ambitious green agenda and strengthening the business’ passenger centred approach during the contract. We’re proud to be playing our part in the future of Britain’s railways.

Alistair Gordon, Keolis UK CEO

“”
We welcome this positive news, which marks the start of a new era for GTR. I’m incredibly proud of how far we have come, including overcoming two challenging years dominated by Covid. All of this is thanks to the continued focus and passion that GTR colleagues bring to work every day.​

I’m delighted that GTR’s long-standing experience in running the UK’s largest train network, our focus on improving the customer experience and our strong local community relationships have been recognised. This new agreement means we can continue to build on what we have achieved to date as we focus on welcoming more people back to the railway.

Patrick Verwer, GTR CEO