A First Great Western train on the London-Swansea mainline near Hensol.

Transport giant FirstGroup said today that it is giving up its First Great Western rail contract three years ahead of schedule.
 
The company has an option to extend the franchise beyond March 2013 but said it would rather re-bid for a longer-term contract under the new Greater Western franchise which will accompany investment in the region's network.
 
FirstGroup said, "The Government has committed significant investment to transform rail services in the region and we believe that, through our unrivalled expertise and experience, we are best placed to manage these projects and we intend to bid for the new Greater Western franchise."
 
The move in relation to First Great Western, which covers services between London Paddington and Swansea, will reportedly save the company more than £800 million in repayments to the Government.
 
First Great Western's record on punctuality and reliability has been much criticised in recent years and led to a "strike" by passengers in 2008.
 
In annual results today, FirstGroup said the franchise's performance over the last year had been affected by infrastructure issues, and that, while punctuality improved in February and March, there remained more to do.
 
The group, which also runs the Capital Connect, ScotRail, and TransPennine Express services, said it increased rail revenues by 6.5 percent to £2.27 billion in the year to 31 Mar 2011, while profits rose 23 percent to £108.7 million.
 
Including UK bus and overseas operations such as the US-based Greyhound coach service, FirstGroup's profits fell 27 percent to £127.2 million.
 
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