Herbert Smith Freehills has advised long-standing client Virgin Trains on its new contract to operate the West Coast rail franchise, announced by the Department of Transport on 19 June 2014.

The West Coast franchise is Britain's busiest intercity line and covers passenger services between London, Birmingham, Manchester, Liverpool, North Wales, Glasgow and Edinburgh.  The new West Coast franchise agreement entitles Virgin Trains to operate the passenger services from 22 June 2014 to at least April 2017, with an option to extend for up to an additional 12 months.

The award of the new contract is part of a broader programme being run by the Department for Transport to enable a balanced schedule for the competitive re-letting of franchises following the hiatus arising from the successful challenge by Virgin Trains of the Department's award of the West Coast franchise to First Group in 2012, on which Herbert Smith Freehills also advised.

Under the new franchise agreement, Virgin Trains will implement a package of improvements including modifying trains to provide at least an extra 5500 standard class seats each day and faster wi-fi on trains and at stations.  As part of the new arrangements Virgin Trains will also make payments to the Department for Transport of about £430 million over the term of the franchise. Virgin Trains is a joint venture between Virgin and Stagecoach.

The Herbert Smith Freehills team was led by infrastructure partner Adrian Clough, with support from John Williams, Of Counsel, Anand Gangadia, Associate and James Leadill, Trainee. Specialist advice was provided by Associate, Jatinder Bhara, on data protection issues and partner Tim Briggs on procurement.

Adrian Clough commented: "We are delighted to have advised Virgin Trains in securing this new franchise, held by Virgin since 1997, which will enable them to further invest and improve the service for the benefit of its 32 million annual passengers."