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Go-Ahead was been awarded Netz 1 - Lot 2 and Lot 3 of the Baden-Wurttemberg rail network, based in the south west of Germany.
We've worked in close partnership with Go-Ahead throughout the development of this innovative technology and it's very exciting to move into the production phase.
Go-Ahead chief executive David Brown said: "We are committed to operating in the rail market and are helping to shape the future of the industry through our involvement in the Government's review of rail franchising.
Go-Ahead said rail profits will be broadly half last year's pounds 34.
Go-Ahead chairman Sir Patrick Brown said: "We believe we are well-placed for the year ahead, whilst mindful of the current economic uncertainty.
If we had not been given the go-ahead, we could not afford to put the extra seats in and, in addition, it would have also reduced our capacity by 4,000 or 5,000 spectators," said club chairman Peter Ridsdale
Go-Ahead said its bus division, which operates more than 3,600 vehicles, was trading well, while it described the performance of rail over the past two months as "excellent".
Go-Ahead has sought to cut costs, including shedding jobs, to counter an expected fall in passenger growth.
Go-Ahead said passenger revenues were up 10% in Southern and London Midland and by 4%in Southeastern.
Go-Ahead provides passenger transport services in the bus, rail and aviation sectors.
Keith Ludeman, Go-Ahead chief executive, said: "This is good news for us.
Contract notice: Railway websites for The Go-Ahead Group.