The Strategic Rail Authority (SRA) said National Express, picked as preferred bidder for the franchise in November, would run trains in an enlarged Greater Anglia region of eastern England for seven years from April 2004, with an automatic extension of three years if performance targets were met.

The Greater Anglia franchise brings together the old Anglia, Great Eastern and West Anglia services, the latter of which was already operated by National Express.

The SRA unveiled a new blueprint for passenger train franchises in November aimed at setting clearer requirements for franchise operators and a better service for travelers.

Public confidence in Britain's railways has been shattered by a series of fatal crashes and heavy disruption to services as the network underwent emergency repairs.

National Express said that under the new franchise deal, it would invest 11.3 million pounds ($20.5 million) in upgrading 50 stations with facilities such as CCTV and new ticket machines.

Longer trains would also be introduced for the route between London and Stansted airport.

National Express estimated passenger revenues from the franchise would total about 375 million pounds in the first full year of operation.

The firm's shares closed at 629 pence on Thursday, giving a market value of about 861 million pounds.

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