28/06/2002

Stagecoach Group confirms that it has been short-listed as a bidder to run the heavy rail services of the Massachusetts Bay Transportation Authority, the commuter railway serving Boston and surrounding areas.

Stagecoach's bid is through Stagecoach Rail North America, in partnership with Herzog, one of the most experienced private rail firms in the US. The contract is a five-year management contract to operate a vertically-integrated railway, including operation and maintenance of both rolling stock and infrastructure.

Keith Cochrane, Stagecoach Group chief executive, welcomed the decision. "This is another step in our strategy of building our rail business where we have built relationships locally through Coach USA. "Our ownership of South West Trains, Britain's biggest franchise, makes Stagecoach Rail one of the most experienced private rail operators in the world. Together with our US partner Herzog, we are sure we can provide value for both the passengers and taxpayers of Boston."

Inquiries to:

Robert Ballantyne, Stagecoach Group
John Kiely, Smithfield Financial

Notes to editors:

Herzog, based in Missouri, is a diversified American engineering and construction group with long experience of rail infrastructure, contracting and railcar leasing and operations, including commuter railways in Miami, Florida; Dallas, Texas and San Jose, California.

Massachusetts Bay Transportation Authority, the MBTA, is one of the largest commuter rail operators in North America, carrying more than 30 million passengers per year into Boston on 13 commuter lines linking 116 stations.

Stagecoach Group runs South West Trains, Britain's biggest commuter railway, with 1700 trains a day into London Waterloo.

Stagecoach Group is also partner with Virgin in Virgin Trains, on the key West Coast Main Line and Cross Country long-distance franchises.

Stagecoach Rail also runs Sheffield Supertram, and is bidding for other light rail businesses. Earlier this month, Stagecoach Rail was named as preferred partner to develop Wellington commuter services in New Zealand.