performance expectations, the container leasing, passenger transport and hotel company said.

Sea Containers took over Great North Eastern Railway (GNER) last April which operates between London and Scotland as part of the privatisation of British railways.

GNER expects to carry 12 million passengers in its first 12 months under private ownership, a seven percent increase over the previous 12 months, Sea Containers said.

Passenger revenue is expected to be $413 million, up 9.2 percent from the prior period.

Operating profits are also up strongly, aided by revenue growth and cost reductions.

Sea Containers intends to apply to extend the GNER franchise permit. The company also plans to submit a bid to take over the InterCity West Coast rail franchise, covering London to Birmingham, Manchester, Liverpool services.

But, said Sea Containers president James Sherwood, "The government is seeking not only to privatise InterCity West Coast but to obtain a guaranteed upgrade of the network in the process. I'm not certain the two can be completely linked at this stage. We must be certain what new technology works on the British rail system and the requirements of financial institutions are fully met.'' BUSINESS BUC