Press releases

Arriva plc, one of Europe's leading transport operators, has won the contract to operate rail services between Munich, Oberstdorf in the Bavarian Alps and Lindau, southern Germany.

Bayerische Eisenbahngesellschaft mbH (BEG), the Bavarian government body responsible for the contract, selected Arriva after it submitted a strong bid which promises quality services for customers and good value for the client body. The tendering process was open to any EU transport operator.

The contract is anticipated to generate revenue over 150 million Euro (£103 million) over its 10-year lifetime.

Starting 9 December 2007, Arriva will operate six locomotives and 22 carriages covering 1.53 million kilometres a year. The business will employ around 50 people.

The current contract, known as ALEX, is operated as a joint venture by Arriva and SBB GmbH (the German division of the federal Swiss Railway). Following the contract win Arriva will become sole operator. Arriva operates rail passenger services in seven German federal states. The contract will operate as part of Arriva's Regentalbahn business, which provides rail services in Bavaria, Thuringia and Saxony. The new contract will integrate with Arriva's current service in Bavaria providing passengers with direct services from Furth im Wald and Hof through to Munich and beyond.

David Martin, Arriva's chief executive, said:

This contract win strengthens our position in the German transport market and demonstrates our ability to continue to grow in the increasingly liberalised European transport market.

Our expertise in developing bids which offer quality and good value is helping us enhance our position as a leading European transport services organisation.

As part of the contract Arriva will lease an additional six new locomotives and refurbish train carriages.

Notes to editors

• Arriva is one of the largest private sector providers of passenger transport in mainland Europe. It employs nearly 33,000 people and provides more than one billion passenger journeys every year.
• Arriva provides transport services including buses, trains, commuter coaches and water buses in eight European countries - Denmark, Italy, Germany, the Netherlands, Portugal, Spain, Sweden and the UK.
• Arriva entered the German transport market in April 2004 with the acquisition of Prignitzer Eisenbahn Gruppe, which operates rail services in the federal states of North Rhine-Westphalia, Brandenburg and Mecklenberg-Western Pomerania. In September 2004 Arriva acquired a 76.9 per cent share holding in Regentalbahn which provides rail services in Eastern Bavaria, Thuringia, Saxony and to the Czech Republic.
• In November 2005 Arriva announced that it had won the contract to operate rail services between Munich, Hof and Furth im Wald in Bavaria from December 2007.
• Arriva entered the German bus market in October 2005. The Group operates Sippel, which provides services in the Rhine-Main area, and Verkehrsbetrieb Bils KG (Bils) which operates in the Münsterland region.