The Go-Ahead Group has said that, after months of discussions, a new agreement has been reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract.
The original contract began in December 2019, and the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the rail operator says the Norwegian Government provided financial support to rail operators, preventing material losses.
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Now, a new amended contract takes effect from 1 July, 2022. It will run for the duration of the original contract, until December 2027, with a two-year extension option until December 2029.
The contract provides a revenue support scheme and an incentive scheme linked to revenue growth.
Go-Ahead says that as a result of these improved contractual arrangements, the Group expects to significantly reduce a £66.2 million “onerous contract provision” relating to its rail operation in Norway in its full-year results for the year ending 2 July 2022.
A “satisfactory footing”
Christian Schreyer, Group chief executive, The Go-Ahead Group, said: “We’re pleased to have reached an agreement with the Norwegian Government which puts our rail contract onto a satisfactory footing.
“We’re proud of our colleagues at Go-Ahead Nordic who deliver an outstanding service and who have achieved the best customer satisfaction ratings on Norway’s railway network.”
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