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Operating Lease Agreement in relation to a fleet of class 350 electric multiple units and associated equipment

Northern Trains Limited

This public procurement record has 2 releases in its history.

Award

27 Jul 2026 at 16:40

UK6 - Contract Award Notice
Award

13 Jul 2026 at 17:42

UK5 - Transparency Notice
Summary of the contracting process

Northern Trains Limited procured an operating lease for 37 Class 350/2 electric multiple units and associated equipment. The trains are intended to replace Northern’s existing fleet of 34 Class 323 electric multiple units, which Northern currently leases and operates on its network, primarily in Greater Manchester. The requirement covers both rolling stock and financial leasing services. The leased fleet is to support Northern’s operational and passenger-capacity requirements, with arrangements allowing the Class 323 lease to end early so the replacement fleet can be introduced without increasing Northern’s subsidy. The lease also provides for possible sub-leasing to other operators, transfer to a public sector operator, and modifications to the rolling stock where requested or required by law. Northern Trains Limited is based in York.

The procurement is complete and was awarded on 13 July 2026 to Porterbrook Leasing Company Limited. It used a direct award under the utilities regime, justified on the basis that market review identified the proposed Class 350 fleet as the only fleet meeting Northern’s technical, operational and capacity requirements within the required timeframe. The award value is £222,022,200 excluding VAT, or £266,426,640 including VAT. The contract period runs from 17 August 2026 to 16 August 2042, covering a 16-year lease. Northern may break the lease after eight years, in August 2034, if the rolling stock fails to meet reliability and availability targets. One lot was awarded, and a contract signature milestone was scheduled for 17 August 2026.

This award demonstrates demand for large-scale railway rolling-stock leasing combined with operationally suitable electric multiple units. A credible future competitor for Northern would need access to an appropriate fleet, or the ability to finance, source and manage one, together with the technical evidence to show that the trains meet defined reliability, availability, operational and passenger-capacity requirements. Relevant capability includes fleet leasing, rolling-stock asset management, maintenance coordination, performance monitoring and support for changes required by law or by the operator. Suppliers should also be able to manage complex arrangements involving early termination of an existing fleet lease, substitution of rolling stock, sub-leasing to other operators and transfer or novation to a public sector operator. The award indicates that Northern values a proven, ready-to-deploy fleet that fits its network and service requirements.

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Notice Information

Notice Title

Operating Lease Agreement in relation to a fleet of class 350 electric multiple units and associated equipment

Notice Description

Direct Award of a 16-year lease of a fleet of 37 Class 350/2 electric multiple units to replace the current Class 323 electric multiple unit fleet which Northern Trains Limited ("Northern") lease and operate on the Northern Network, primarily in the Greater Manchester area. The lease includes an ability for Northern to break the lease after 8 years (in August 2034) where the rolling stock fails to meet performance targets in respect of reliability and availability. As part of the leasing of the class 350 fleet, Northern have also agreed with the lessor that the lessor will agree to the termination of the lease by the same lessor of a fleet of 34 class 323 electric multiple units early, allowing the class 350 fleet to be substituted for the class 323 fleet without any increase in subsidy required to Northern to enable leasing of the class 350 fleet. The lease makes provision for sub-leasing of the rolling stock to other operators in specified circumstances under the lease, either on a short-term basis (under 48 hours) or on a longer term basis with consent. The lease also permits the assignment, transfer, novation or disposal of all of rights and obligations of the lessee under the lease (a "Transfer") to a public sector company who will also operate the rolling stock on the Northern Network. The lease also contains mechanisms which allow for modification of the rolling stock provided under the lease at the request of either Northern or the lessor, including where this is required by law ("the Modification Provisions"). In the event that the rolling stock is let to a third party, the lease is subject to a Transfer or any of the Modification Provisions are engaged, it is considered that these would be permitted modifications provided for in the contract.

Procurement Information

Due to reducing performance of its current class 323 fleet, Northern requires introduction of a fleet of trains which will continue to meet its operational and capacity requirements to replace that existing fleet for at least its current term. Having carried out a detailed market review, and having consulted with third parties, Northern have identified the proposed class 350 fleet as the only train fleet which meets its technical, operational and capacity requirements for the relevant service provision within the required timeframe. Northern has not identified any reasonable alternative to the leasing of the class 350 fleet, and only the proposed lessor can provide that fleet, Northern intend to direct award on that basis in accordance with paragraph 6 of Schedule 5 Procurement Act 2023.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-06c9fb
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/070927-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

34 - Transport equipment and auxiliary products to transportation

66 - Financial and insurance services

CPV Codes

34620000 - Rolling stock

66114000 - Financial leasing services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£222,022,200 £100M-£1B
Contracts Value
Not specified

Notice Dates

Publication Date
27 Jul 20261 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
13 Jul 20262 months ago
Contract Period
17 Aug 2026 - 17 Aug 2042 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Northern Trains Limited
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
YORK
Postcode
YO1 6JT
Postcode Area
York
Country
England
Major Region (ITL 1)
TLE Yorkshire and The Humber
Basic Region (ITL 2)
TLE2 North Yorkshire
Small Region (ITL 3)
TLE21 York
Delivery Location
Not specified
Local Authority
York
Electoral Ward
Micklegate
Westminster Constituency
York Central

Supplier Information

Number of Suppliers
1
Supplier Name

PORTERBROOK LEASING COMPANY LIMITED

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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