Arriva wins rail contract in Germany

Arriva plc, one of Europe's leading transport operators, has wonthe contract to operate rail services between Freilassing andBerchtesgaden in Bavaria, southern Germany from December 2009.

Arriva's rail subsidiary Regentalbahn AG, working as part of aconsortium with Austrian operator Salzsburg AG, was selected byBayerische Eisenbahngesellschaft mbH (BEG) after submitting astrong bid.

The consortium intends to improve the travelling experience withthe introduction of new trains and a range of ticketing optionsaimed at increasing off-peak and tourist services. It also offersgood value for BEG, the Bavarian government body responsible forthe contract.

The 12-year contract is anticipated to generate revenue over€55 million (£37.9 million) over its lifetime for theconsortium.

The consortium will operate five new two-car Stadler Flirttrains and cover nearly 500 thousand kilometres a year.

The air-conditioned, easy access trains will be in service forthe start of the contract and operate every half an hour betweenFreilassing and Bad Reichenhall and approximately hourly betweenBad Reichenhall and Berchtesgaden. The contract will provide idealconnections to services to Münich, Salzburg and Mühldorfand could offer future opportunities for expansion into theAustrian rail market.

The management of the contract will primarily be carried outfrom Arriva's Regentalbahn office in Viechtach. This will provideopportunities for shared administration and operational bestpractice, resources and facilities.

The consortium will employ around 25 people. Recruitment fordrivers and conductors will start in the New Year.

Commenting on the contract win Arriva's chief executive DavidMartin said:

This is our second rail contract win in Bavaria withinthe last five months. Our partnership with Salzsburg AG willprovide opportunities to share expertise and resources that willbenefit our customers and BEG, the contracting body.

The tendering process was open to any EU transport operator.Competitors included current operator Deutsche Bahn and Veolia.

Notes to editors

• Arriva is one of the largest private sector providers ofpassenger transport in mainland Europe. It employs nearly 33,000people and provides more than one billion passenger journeys everyyear.
• Arriva provides transport services including buses, trains,commuter coaches and water buses in nine European countries –Czech Republic, Denmark, Italy, Germany, the Netherlands, Portugal,Spain, Sweden and the UK.

• Arriva entered the German transport market in April 2004 withthe acquisition of Prignitzer Eisenbahn Gruppe, which operates railservices in the federal states of North Rhine-Westphalia,Brandenburg, Berlin and Mecklenberg-Western Pomerania. In September2004 Arriva acquired a 76.9 per cent share holding in Regentalbahnwhich provides rail services in Eastern Bavaria, Thuringia, Saxonyand to the Czech Republic. This share was increased to 92.9 percent in late 2005 and 100 per cent in June 2006.

  In November 2005 Arriva announced that it had won the contract tooperate rail services between Munich, Hof and Furth im Wald inBavaria from December 2007. In July 2006, the Group announced thatit had won the contract to operate rail services between Munich,Oberstdorf in the Bavarian Alps and Lindau, southern Germany.

  Arriva entered the German bus market in February 2005. The Groupoperates Sippel, which provides services in the Rhine-Main area,and Verkehrsbetriebe Bils KG (Bils) which operates in theMünsterland region.