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South Western 'improvements' promised as First MTR wins franchise

The winner of the race to operate the South Western rail franchise has promised a series of improvements amid a row over the involvement of a foreign firm.

First MTR - a combination of First Group and the Hong Kong operator of the looming Crossrail service across London - said passengers would see simpler fares, more seats and faster journeys through a £1.2bn investment.

The Government confirmed it would run the franchise for seven years from 20 August - taking over from Stagecoach which has run South West Trains (SWT) since 1996.

However, the RMT rail union slammed the move, arguing the service should have been brought into the public sector to protect taxpayers from the Chinese state making "a killing" at their expense.

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Transport Secretary Chris Grayling said it was more "great news" for rail passengers following the recent announcement of a consultation on the South Eastern franchise.

He said: "First MTR South Western Trains Limited will deliver the improvements that people tell us they want right across the South Western franchise area, from Bristol and Exeter, to Southampton and Portsmouth, to Reading, Windsor and London.

"We are delivering the biggest rail modernisation programme for over a century and this franchise will deliver real changes for passengers, who can look forward to modern trains, faster journeys and a more reliable service."

First MTR pledged 22,000 extra seats into London Waterloo each morning peak and 30,000 extra seats each evening peak, as well as a fleet of 90 new trains with more space for passengers on Reading, Windsor and London routes.

It said other improvements included automated compensation for late trains, better Wi-Fi and more charging points for mobile devices.

MTR currently runs rail services between London Liverpool Street and Shenfield in the UK.

Its head of European business, Jeremy Long, said: "MTR is known across the world for the excellent quality of its rail services, and we look forward to working with FirstGroup (LSE: FGP.L - news) to provide a best-in-class travel experience for passengers in London and the South West."

Stagecoach said it was disappointed to lose the franchise. Its share price closed 1% lower on Monday..

The RMT wanted the franchise brought back into public hands.

Its general secretary, Mick Cash, said: "It is, frankly, ludicrous that the Tories are continuing with the 'any state but the British state' policy which has plundered our railways for over two decades.

"RMT is deeply concerned at exactly what this announcement will mean for our members, these crucial rail services and the safety of the travelling public.

"We will be seeking an early meeting with the new owners to secure cast-iron guarantees on the jobs and role of the guards, the future of the wider workforce and the safety and quality of passenger services."