THIS MORNING (Wednesday, May 23) The Welsh Government announced that the Wales and Borders rail service will be run by the French-Spanish consortium, KeolisAmey for the next 15 years.

But it will take another 10 days for the contract to be confirmed to allow rival franchise bids to appeal the decision.

They beat Hong Kong-based MTR to the contract.

Abellio Rail Cymru withdrew their bid earlier this year, and Arriva Trains Wales announced in November 2017 that they would not be bidding.

Arriva TW will continue to run the service until October when KeolisAmey are expected to take over.

The contract will run from June 4, 2018, to October 14, 2033, with rail services transferring on October 14, 2018.

Alistair Gordon, Chief Executive of Keolis UK, said:“This will be a transformative new rail service for Wales and its borders which will see Keolis once more combine its worldwide expertise in passenger operations with Amey’s engineering excellence.

"We look forward to the successful completion of the procurement process - this exciting contract will deliver for all of Wales.

"The procurement process was rigorous, resulting in transformative solutions for the benefit of all in Wales, and indeed, future generations.

"While the proposed changes won’t happen overnight, the railway will be unrecognisable in five years thanks to the vision of the Welsh Government."

Andy Milner, Amey’s Chief Executive, said: "We are honoured to be asked to operate the Wales and Borders service.

"This is a great opportunity for us to use our joint capabilities to deliver a first-rate service for Wales.

"We will be focused on working with Transport for Wales to transform the existing infrastructure and introduce new trains to significantly improve the passenger experience, as well as creating hundreds of new jobs and apprenticeship opportunities.

KeolisAmey is unable to make any further comment until the procurement process has concluded and the contract has been awarded.

Transport for Wales (TfW) - which is advising the Welsh Government on the contract - said the new franchise holder would be held to account on issues like punctuality, cleanliness and service quality - or they would not get paid.

But there will be challenges ahead in terms of rising passenger numbers, which have nearly doubled in the last 15 years.

Economy Secretary Ken Skates said: "Throughout the procurement process we have prioritised investment in the quality of trains, stations and services for the Wales and Borders Rail Service and South Wales Metro.

"We are grateful to all those who have participated in the procurement process."

Montgomeryshire Assembly Member, Russell George believes there are "significant concerns" over the award of the contract.

Mr George, said: “The announcement of a new rail franchise is a significant moment for Wales and passengers will be expecting a truly 21st century rail service that puts commuters first.

“However, significant concerns remain over the role of Transport for Wales (TFW) in the award of this contract.

“TFW has been the key advisory body to the Welsh Government in this franchise process, and this is particularly worrying given the damning criticism of the organisation’s chief executive in the report on the inexplicable handling of the Circuit of Wales project.

“The report highlighted leadership that had poor record-keeping, poor judgement and which was not properly in control of its business.

“As promised by the Cabinet Secretary last year, commuters will be expecting immediate improvements – quick wins – in their daily service including access to free Wi-Fi.

“From the outset, we have been adamant that the priorities of Welsh passengers should be at the very heart of the new franchise namely; an agreement that takes into account the commercial realities of expanding passenger numbers over time, and trains that are reliable, cost effective and contain enough seats to accommodate the travelling public.”

KeolisAmey is a joint venture partnership of international public transport operator Keolis, and infrastructure asset management specialist Amey.

KeolisAmey currently runs the Docklands Light Railway (DLR) in London and operate and maintain Greater Manchester’s Metrolink – the largest tram network in the UK.