The Department for Transport (DfT) has struck a deal with c2c Rail, which will see the latter operate trains in Essex for at least another 16 months.

This is the first agreement the DfT has concluded since the UK's rail franchising programme was revised in March 2013.

A subsidiary of National Express, c2c will operate the current Essex Thameside franchise until September 2014, at which point a long-term partner will take control.

Transport secretary Patrick McLoughlin said the deal is a vital step in getting the franchising system back on track.

The government recently set up a Franchise Advisory Panel, which will provide support for the DfT as it attempts to renegotiate 15 major railway contracts over the next eight years.

"It gives the industry time to develop their long term plans for the future franchise and confidence to passengers that services will continue for the next 16 months," Mr McLoughlin commented about the c2c Rail tie-up.