Scotland's transport minister says an arm's length company will take over the franchise on 25 June.
The Caledonian Sleeper rail service is to be nationalised later this year, the Scottish government has announced.
In a statement to MSPs, Transport Minister Jenny Gilruth said an arm's length company of the government would take over the franchise on 25 June.The current franchise was awarded to Serco in a deal worth £800m. It had been due to run from 2015 to 2030. She added: "Rather, the decision that I had to take on rebasing was a question of the terms of the rebase offer and that, in the government's view, these terms did not represent the best value for money."The service, which has been operating in various forms since 1873, runs overnight trains between Scotland and London.
He added: "The minister agreed that the sleeper has surpassed any other train company in the UK in its recovery from the pandemic and was thriving and a world class service. The RMT said it would give the Scottish government "an opportunity to ensure this sustainable, low carbon route between Scotland and London can be run for passengers' interests, not private profit".
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