RNS Number:0639R
Arriva PLC
20 October 2003



20 October 2003

                                   ARRIVA PLC
                                        
               ARRIVA TRAINS LTD SIGNS WALES AND BORDERS AGREEMENT

Arriva plc has announced today that Arriva Trains Ltd has signed a franchise
agreement with the Strategic Rail Authority (SRA) to operate the new integrated
Wales and Borders franchise.

Commenting, Bob Davies, Arriva's chief executive, said: "The SRA announced that
we were preferred bidder for the 15 year franchise at the beginning of August
and we are very pleased to have reached an agreement which will enable us to
take over the franchise on 7 December 2003. The new franchise will be operated
as Arriva Trains Wales/Trenau Arriva Cymru Limited.

"We have established a team based in Cardiff who are working closely with the
existing operator to ensure a smooth transition in December.

"Over the next couple of months there will be an extensive consultation process
regarding our plans to improve the rail service in Wales and the border
counties. This process will involve the Welsh Assembly Government, the Rail
Passengers Council and Committees, and other stakeholders.

"Our focus will be to ensure we deliver a safe railway with improved
performance, reliability and punctuality for existing and new customers."

SRA Chairman, Richard Bowker, said: "Today marks a step change in the way the
railway delivers for the people of Wales. For the very first time, Wales will
have a unified railway under a single operational management structure.

"This has all been achieved through partnership between the Welsh Assembly
Government and the SRA, and Arriva Trains will now concentrate on what matters
most to passengers - improved performance, reliability and punctuality."

Andrew Davies, Wales' Minister for Economic Development and Transport, said:
"The Welsh Assembly Government has given a high priority to improving transport
infrastructure including road and rail and the development of improved public
transport on buses, community transport, trains and air.

"I am looking forward to working with Arriva to improve the existing service and
to develop new passenger services on the Vale of Glamorgan and Ebbw Valley
lines."

Key commitments contained within the new franchise include:

* Current service levels maintained;

* Final development of a simplified, user-friendly timetable, as well as
  better performance and connections, planned for December 2005 for both the
  Valley Lines and inter-urban services;

* Introduction of seven class 150 Diesel Multiple Units planned from
  December 2004, leading to greater operational flexibility and resilience, to
  replace current, less suitable stock;

* A better compensation scheme for passengers, including full refunds for
  those customers who are delayed by more than sixty minutes;

* Introduction of 30 new integrated train / bus ticket schemes by
  November 2005, in addition to those already in operation, allowing many new
  opportunities for simpler through journeys. Arriva's vision is to create a 
  fully integrated railway system in the Wales and Borders operating area, with 
  bus and coaches providing links to railway stations. In consultation with 
  local transport authorities and bus operators, new integrated travel schemes 
  will be introduced in a number of areas including Bangor, Llandudno, 
  Aberystwyth,Shrewsbury, Chester and Hereford;

* Improved bi-lingual access, including a Welsh Language customer
  service phone line, passenger timetables and information, full bi-lingual
  signage and recorded station announcements at stations where there are 
  existing suitable public address systems by May 2004;

* Introduction of a new, customer-focused 'Station Adopter' scheme.
  Arriva pioneered this approach in its rail franchise serving the North of
  England. This extremely successful scheme is seen as best practice in the rail
  industry and is being introduced by other train operating companies across the
  UK. Arriva believes its 'Station Adopter' scheme will bring real benefit to
  customers in the Wales and Borders franchise;

* #400,000 on improving station car parks at Cardiff Central (Wood
  Street), Chester, Hereford, Newport and Shrewsbury;

* Abolition of the #1 reservation charge for bicycles on trains.

The Wales and Borders franchise includes all local and regional passenger rail
services within Wales, services from Cardiff to Hereford, Shrewsbury and
Manchester, and those from Wales to Birmingham, North West England and the West
Country. The new franchise also includes the operation of all stations in Wales,
and those predominantly served by the new franchise in the border counties,
including Chester, Shrewsbury and Hereford.

ENDS

For further enquiries:

Arriva plc                                                  0191 520 4000
Bob Davies, Chief Executive
Steve Lonsdale, Group Finance Director
Julian Evans, Director of Corporate Communications          0191 520 4090

Gavin Anderson & Company                                    0207 554 1400
Deborah Walter/Rebecca Wyles






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