Welsh rail services to be nationalised in Transport for Wales government takeover
The Welsh Government will take full ownership of Wales' rail services due to "dramatic falls in passenger numbers" during the pandemic.
In a statement, the government confirmed that the Wales and Borders rail franchise will be put under public control.
The takeover is expected to take place in February 2021.
Transport minister, Ken Skates, said the move will help protect jobs and "secure the future of passenger services" in the area.
The rail service is currently jointly owned by Welsh Government and private company, KeolisAmey.
KeolisAmey has run day-to-day rail services in Wales for just two years after taking it over from Arriva Trains Wales.
Ken Skates MS said: "The last few months have been extremely challenging for public transport in Wales and across the UK. Covid has significantly impacted passenger revenues and the Welsh Government has had to step in with significant support to stabilise the network and keep it running.
"We have decided to transfer of day-to-day rail services to a new publicly-owned subsidiary of Transport for Wales.
"In Wales we continue a partnership approach between TfW and KeolisAmey as we work together to protect services for the Welsh public, safeguard jobs and secure the important Metro projects we have been working so hard on over the last few years.”
The coronavirus pandemic has caused a fall in passenger numbers across public transport and with less journeys being made, this has affected operations.
Transport for Wales said the announcement comes during an "incredibly difficult" time for the industry, with a huge reduction in passenger journeys and revenue due to the pandemic.
Chief Executive James Price said: "We will continue to benefit from the international industry expertise of both Keolis and Amey whilst giving TfW and Welsh Government more control to deliver our key transport objectives, as we look to sustain the good progress of the rail network and ensure it plays a vital role in helping Wales to be well-placed in a post pandemic environment."
Mr Price also warned there will be "difficult decisions in the future" as the company adapts "to the realities of a post-Covid era".
Plaid Cymru said this "could well be the right decision" and emphasised that their party has previously called for the railways to be transferred to public hands.
Plaid Cymru's Shadow Minister for Transport, Helen Mary Jones MS said: "This could well be the right decision...However crucial questions remain. What are the financial implications? Does Transport for Wales have the capacity to directly manage the service? What is the nature of this subsidiary?
"Decisions of this importance should be announced in the Senedd so that members can ask questions on behalf of the people of Wales. I’m grateful to the Minster for agreeing to meet me privately to discuss, but that is no substitute for public scrutiny."
Professor Stuart Cole, a leading expert in transport economics described the takeover as a major change. He said by taking over the franchise, every operational part of the railway will now be run by the Welsh Government.
"Everything the traveller sees will be operated by the Welsh Government", he said."They probably won't like the word nationalise, but that is what in effect has happened."
Professor Cole added: "Before Covid-19, the last figures I saw for running the Wales and Borders services was around £360 million."The Welsh Government give around £180 million in subsidies, and they just gave a £50 million extra (in emergency coronavirus support.)"We were always on the way to a nationalised railway but sadly it was the coronavirus that has pushed all the railways, not just in Wales, into a position where the Government has had to take far more control."Essentially, the Welsh Government have taken over the revenue and costs."It is the transfer from the ownership and management from a franchise to a public sector company owned by a government company."