SERCO, the scandal-hit outsourcing firm, has been awarded a 15-year contract to operate the Caledonian Sleeper service train from London to Scotland.
The FTSE 100 firm, which was accused of overcharging on a previous and unrelated government contract, will earn up to £800m in revenue over the contract period, of which £180m will be in the form of franchise payments.
It takes over the franchise from transport operator First Group.
The Sleeper service provides a connection between London and Aberdeen, Edinburgh, Glasgow and many other of Scotland’s main cities.
More than £100m will be invested in a new fleet by the summer of 2018, part-funded by a £60m grant.