BUSES and trains group Arriva yesterday moved one step closer to its target of becoming Europe's leading transport operator after clinching its first rail contract in Sweden.
The £15m deal will see Sunderland-based Arriva operate the regional train service in southern Sweden from summer next year.
The contract will run for at least nine years, with the possibility of being extended for a further two.
The news came 24 hours after Arriva announced it had sold its rental business, Arriva Vehicle Rental, to Darlington van hire firm Northgate in a deal worth £129m.
David Martin, Arriva's deputy chief executive, said the Swedish contract fitted into the firm's strategy to continue expanding into mainland Europe.
"We are focused on delivering this by winning and retaining profitable contracts, growing our business organically and through targeted acquisitions," he said.
Arriva already operates rail services in Denmark, Germany, the Netherlands and the UK and runs buses in eight European countries, including Sweden.
Arriva beat off strong competition from bidders including DSB and SJ, the Danish and Swedish state-owned railways, to clinch this latest deal with Swedish government body Skanetrafikken,
Starting on June 17, 2007, Arriva will operate 26 Litra X11 trains on a four million kilometre network serving 47 stations in Sweden's southern region of Skane.
During the contract, Arriva will work with Skanetrafikken to increase customer numbers, take forward proposals to purchase trains to increase the fleet to about 60 trains, increase the network size and deliver timetable improvements.
The firm will also manage the contract to maintain and clean the trains and will provide comprehensive training for new drivers and conductors.
Mr Martin said: "Arriva is in a very strong position to benefit from increasing liberalisation in European transport markets and we look forward to further successes in rail across the UK and mainland Europe."
Arriva is one of the largest private-sector providers of passenger transport in mainland Europe. It employs more than 30,000 people and provides more than one billion passenger journeys every year.
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