UK train operators under new ownership as I Squared buys Arriva

Arriva, which operates Chiltern Railways, CrossCountry, the London Overground concession and open access operator Grand Central, has a new owner.

Infrastructure investment company I Squared has bought the group from German state-owned Deutsche Bahn for an undisclosed sum.

The sale was first announced in October 2023 but completed on 3 June.

I Squared said it committed to provide “significant long-term capital to support growth and decarbonisation.”

Chiltern is currently seeking new or replacement rolling stock, and will operate the first services on East West Rail next year, between Oxford and Milton Keynes via Bletchley.

CrossCountry is planning to run more and longer services, with 12 additional Voyager trains and refurbishment of the entire fleet.

Both operators have contracts that run up to late 2027, while Grand Central’s agreement expires in 2026. It has applied to run additional services from next May.

Arriva TrainCare operates train maintenance depots in Bristol, Cambridge, Crewe, Eastleigh and Newcastle.

Arriva Group and all its operating companies have transferred to I Squared. Staff will continue without changes to their employment conditions.

Labour has said that, if it forms the next government, it will return passenger train services to the public sector when existing contracts expire. In its April 2024 transport strategy, it said it would continue to back open access operators.

Arriva is also one of the largest bus operators in the UK. It employs 34,400 people across Europe, with 1.6 billion passenger journeys a year, and has operations in the Netherlands, Italy, Spain, the Czech Republic, Croatia, Hungary, Poland, Slovakia and Romania.

Arriva Group chief executive Mike Cooper said: “It is an opportunity for Arriva to recommit to working alongside passenger transport authorities to build a more sustainable future for our colleagues, customers and the communities we serve.”

I Squared, which is based in Miami, invests in infrastructure including transport, logistics, energy and utilities in 71 countries. It has assets of $38 billion (£30bn).