GERMANY: Bayern transport procurement body Bayerische Eisenbahngesellschaft has selected Veolia Transport's German subsidiary Veolia Verkehr for a 12-year contract to operate E-Netz Rosenheim regional services from December 2013.

Expected to generate total revenues of €1bn, the contract awarded in December covers services previously operated by DB on two routes between München and Rosenheim and across the border to Salzburg and Kufstein in Austria.

Veolia subsidiary Bayerische Oberlandbahn has operated regional services between München and Holzkirchen for the past 10 years.

'This project is going to give us the opportunity to introduce more innovative services that will benefit passengers', said Veolia Transport CEO Cyrille du Peloux. 'New direct links will be put in place and the trains will be upgraded and made more comfortable. So we are predicting a clear increase in passenger numbers'.