The c2c rail franchise has started in east London and Essex.
Officially launched on Monday (November 11th), the new agreement will provide passengers on the Essex Thameside route with extra trains, more carriages and additional services, a Department for Transport statement said.
The franchise will last for 15 years and will deliver 17 brand-new trains, as well as discounted fares, new ways to buy tickets and free Wi-Fi.
Rail minister Claire Perry commented: "Passengers deserve the best from our railways, and they will see the biggest ever package of benefits from this franchise, with new and improved trains and extra services."
"It is great to see c2c really thinking about what their passengers need," she added.
As a result of the new franchise, in excess of 25,000 extra seats will be available to passengers travelling during the morning peak period once the contract comes to an end in 2029.
Over £30 million is to be spent on improving stations such as Fenchurch Street and Barking, while an enhanced compensation system will automatically provide reimbursement to people whose train is delayed.
Regarding punctuality, c2c has committed to ensuring more than 90 per cent of its trains reach their destination within a minute of the scheduled time by the end of 2018.
Julian Drury, c2c managing director, stated: "Today we are launching the biggest single package of improvements for passengers ever seen on c2c."
This month has also seen deputy prime minister Nick Clegg reveal planned improvements to rail services in the north of England.
It is hoped this will help to shorten journey times and tackle the problem of overcrowding. At present, one-third of the 25 million people who use cross-Pennine rail routes are forced to stand during their commute.
Mr Clegg revealed he wants to see electrified links between Liverpool and Manchester in the west and Leeds, Sheffield, Newcastle and Hull in the east. It is thought this would cut journey times between Manchester, Leeds and Sheffield to 40 minutes.