Welsh train operator Arriva drops bid for new franchise

Arriva is German owned and faced competition for the new franchise from Dutch, French and Hong Kong rail operators. Credit: PA

Transport for Wales has announced that Arriva Rail, which runs most Welsh train services, has pulled out of the bidding process for the next Wales and Borders rail franchise.

The Welsh Government is taking over responsibility for the franchise from the Department for Transport.

It is aiming to achieve major improvements to the service, including new trains and the electrification of the Valleys lines, which will be integrated into a new South Wales Metro that combines trains, trams and buses.

Arriva is ultimately controlled by the German state railway. Its withdrawal leaves three other bidders in contention. They are all also offshoots of overseas state-owned operators:

  • Abellio Rail Cymru -Dutch state railways

  • Keolis Amey -French state railways

  • MTR Corporation (Cymru) -Hong Kong's mass transit railway

The Managing Director of Arriva Trains Wales confirmed that the Arriva Group, which is a major train and bus operator in various parts of Britain, had informed him of its decision to pull out of the franchise bidding process. The group said it had not been an easy decision after almost 14 years of running the service and it will continue to work constructively with Transport for Wales to help make the next franchise a success.

It's expected that all existing workers will be transferred to the new train operator when it takes over next year, with the Welsh Government insisting that all trains continue to have guards. But the Leader of the Welsh Conservatives, Andrew RT Davies, said Arriva's withdrawal raises 'serious questions'.