The two companies behind the joint venture that has won the next Wales and Borders rail franchise and the contract to deliver the next phase of the Metro has confirmed new investments in Wales that will create 130 jobs.
KeolisAmey, a partnership between French transport giant Keolis and Spanish infrastructure management consultancy Amey, will through joint venture company KeolisAmey, take on the next 15 year rail franchise in October this year.
And it will also deliver a £738m (which includes a contingency for a 44% overspend and VAT) project to electrify most of the core Valley Lines into Cardiff, which are now being referred to as Central Metro.
Keolis UK has announced it will move its headquarters from London to a new office in Wales by 2019.
The location has yet to be confirmed, but could potentially be Pontypridd. Keolis will also relocate its global rail division from Paris to Wales by 2020.
Moreover, Amey will open a new design hub in Wales where it will offer consultancy services and further jobs will be created when the companies open a shared services and customer contact centre providing services to both businesses.
These jobs are in addition to the 600 jobs and the 400 apprenticeships that KeolisAmey will create through the new rail franchise and next phase of the Metro. More than 2,000 staff working for current rail franchise operator, Arriva Trains Wales, will transfer over to KeolisAmey.
Alistair Gordon, chief executive of Keolis UK, whose mother hails from Swansea, said: “Being selected as Transport for Wales’ partner for the next 15 years means that we’ll be a part of the fabric of Wales for almost a generation. Moving our headquarters here underlines our commitment and embeds us within the communities we’ll be serving.
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“Wales is a great place for any company to base itself. As part of the procurement process, KeolisAmey was exposed to both business and life in Wales and we were impressed with the commitment, skills and quality of life Wales offers. This, coupled with the extensive and innovative nature of Transport for Wales’ ambitions, means that Wales is an obvious location for us.”
Mr Gordon also confirmed that Keolis’ new HQ will become a centre of excellence, working closely with the shared service centre to become a centre of knowledge which can be utilised by all Keolis’ subsidiaries.
It will also support the further development of Keolis’ businesses in the UK with new developments in parking, cycling, buses and technology all being led from Wales.
Nicola Hindle, managing director of consulting and rail at Amey, said: “As part of our long-term commitment to Wales, and building on our existing presence with over 300 employees delivering services for the Welsh people, we will be investing in a new Amey Consulting design hub in Wales.
“This new office will be a fantastic addition to our strategic network of consultancy hubs across the UK in Birmingham, Manchester, Sheffield, Motherwell, Edinburgh, Belfast and Crawley."
Economy and Transport Secretary Ken Skates said: "The decision by internationally recognised companies Keolis and Amey to between them locate two headquarters and two new offices to Wales is a real coup, and a move that we predict will provide a significant economic boost, beginning with the creation of a further 130 high quality jobs. These are in addition to the 600 jobs announced earlier in the week.
“On top of news earlier this week that the majority of the new trains will be assembled in Newport by Spanish company, CAF, who will be bringing their new manufacturing base to Wales, there is no doubt that the new rail contract will deliver not only improved train services but also very real economic benefits for Wales.”