New Sussex train operator Govia has paid more than £30 million to take over from Connex two years ahead of schedule, it was announced today.

It means the new company will be able to start running the Connex South Central region as the New Southern Railway, by the end of July.

Routes include the Brighton Line and services through Horsham, and along the coast to Portsmouth and Hastings.

The £30 million package for the early takeover is made up of £12.8 million for its assets, including the new trains Connex has bought, and £17.2 million for compensation.

Govia will also pay up to £2.5 million for any increase in value of the assets from December last year to completion date.

Connex, which won the contract for the South Central routes in 1996 and took over in the summer of that year, was scheduled to keep running the franchise until May 2003, when its contract terminated.

Govia, anxious to implement improvements, has spent the months since October, when it was announced French-owned Connex had lost the franchise, planning an early takeover.

Connex had been criticised by commuters, politicians, and people in the rail industry for failing to come up to expectations in running one of the most highly used commuter lines in and out of London and to the Sussex coast.

There have been complicated negotiations involving taking over trains, staff, ticketing arrangements and compensation for the assets and any profits during the remaining two years of the contract.

As part of the deal Govia has set aside a maximum of £10 million to pay Connex should its passenger revenue exceed the agreed level by January 5 2002. The deal has been worked out on the basis that Connex South Central's assets were £12.8 million and had made a profit of £9 million before taxation on a turnover of £308 million.

It has long been acknowledged in the rail industry that the Brighton Line is one of the most profitable in the country with its regular commuter traffic and strong off peak demand.

Govia is 65 per cent owned by the Go Ahead Group, which is the holding company for the Brighton and Hove Bus Company. Govia also owns the Thameslink train company, but will run the New Southern Railway as a separate company.

The franchise to run the current Connex South Central will last for the next 20 years. The New Southern Railway has pledged to run cleaner trains, and instigate a multi million pound investment, with 1,000 new coaches, scrapping all slam door trains.

It has also pledged a feasibility study into the possible reopening of the Lewes-Uckfield line.

The new company has pledged to keep existing staff contracts. Today a statement from the companies said: "Both parties have agreed to work in full co-operation in order to ensure that the handover will be made as smoothly as possible in the best interests of the customers."

Railtrack, which is responsible for maintaining the country's rail system on behalf of the rail operating companies, announced today it was likely to be asking for £2 billion more of public money in summer 2002 to bridge a gap in the company's finance.

It had to speed up its programme of track renewal following last October's Hatfield crash caused by a broken rail.