Major Scottish transport firms Stagecoach and FirstGroup are set to fight it out for the right to operate the TransPennine Express rail franchise.
The companies, respectively based in Perth and Aberdeen, were named yesterday as two of three operators left in the running for the franchise award along with a joint venture company formed by Newcastle-based Go-Ahead and Keolis of France.
FirstGroup has held the franchise since 2004.
The UK Government said all three companies had passed the pre-qualification stage of the bid process for the route.
“We will be asking these companies to come up with innovative and ambitious proposals that will ensure a truly world-class rail network for the region,” Rail Minister Claire Perry said.
The TPE franchise provides inter-urban rail services across the north of England and connects major cities such as Liverpool, Manchester, Leeds, Sheffield and Newcastle.
It also includes a number of cross-border services to Scotland.
The new franchise award will cover between seven and nine years. The successful bidder will be announced next autumn for an expected contract start in February of 2016.
The TPE franchise is being taken forward along side a separate Northern franchise which has attracted interest from Abellio Northern, Arriva Rail North and Govia Northern.
The franchise is expected to run for seven to nine years, with provision for an extension of one year at the DfT’s discretion.
An announcement about the successful bidder is expected in autumn next year, with the contract expected to start in February 2016.
Sir Richard Leese of Rail North said: “Both franchises are due to be awarded by October 2015 and, as they develop their bids, each of the bidders will need to set out how they will capitalise on the biggest programme of rail modernisation ever.”
A Stagecoach spokesman said: “We look forward to engaging with local people and other stakeholders to develop a package of ambitious and robust proposals that will improve services and deliver better value for money to passengers and taxpayers.”
FirstGroup managing director Vernon Barker said: “First TransPennine Express now carries 26 million passengers a year, twice as many as at the start of the franchise, and we recently introduced new, longer, electric trains on the Anglo-Scottish routes which provide an improved timetable and increased capacity.”