Serco Group plc ("Serco") has announced that it has signed the franchise agreement to continue to operate, maintain and support the Docklands Light Railway (DLR).

The seven year contract, which is planned to start on 28 May, may be extended for a further two years and is valued at around £400m over this extended period. 

The new franchise provides for further improvements for passengers including a maximum of ten minutes between trains at any time, trains every three minutes at peak times on the busy Lewisham to Bank line, punctuality of more than 96%, customer satisfaction levels of at least 90% and close to 100% availability for services such as ticket machines, escalators and information displays.

The franchise will also see significant new security enhancements including new ‘Travel safe’ officers to patrol stations and trains during late hours and upgraded CCTV on stations and trains. During the new franchise, Serco will oversee the introduction of three-car trains and new services to Woolwich and Stratford International.

Serco Group Chief Executive Christopher Hyman said: “We are delighted that Transport for London has again selected us to run DLR.  With the new franchise, we aim to continue to deliver what passengers want: reliable, punctual, safe and clean trains and helpful staff. We are also confident of delivering world class services for visitors to the Olympics in 2012.”

Howard Smith, TfL’s London Rail Chief Operating Officer, said: “The DLR is the most reliable railway in the UK.  We look forward to continuing our excellent working relationship with Serco and, continued investment in DLR through TfL’s five-year £10bn investment programme.

“Over the last nine years of the franchise, DLR passenger numbers doubled from 25 to 50 million, stimulating the growth and success of communities and businesses across East London. This new franchise agreement, together with further extensions to Woolwich and Stratford International and the 50% increase in capacity on the Bank-Lewisham Route, lays a firm foundation for the London 2012 Olympic transport network.

“DLR and Serco will continue to work together to meet future demand and build on the DLR’s unrivalled reputation for dependability and delivery.”

Serco was appointed preferred bidder for the new franchise agreement in November 2005.