THE COMPANY which runs most of Wales’ rail network has pulled out of the contest to continue running it from next year.

Arriva Trains Wales has told the transport authority in Wales it will withdraw from the bidding process and has said it is “no longer participating in the Wales and Borders competition”, adding it had “not been an easy decision”.

Transport for Wales said it was “not uncommon” for bidders for major projects to withdraw.

General Secretary Mick Cash said: “This decision by Arriva to abandon their operations in Wales exposes the whole flakey and opportunist nature of the rail franchising process. They appear to have pulled out because they can’t make enough money which is extraordinary.

“This news presents a golden opportunity for the Welsh to take back control of their railways through public ownership and that opportunity should be seized with both hands.”

Arriva Trains Wales’ parent company Arriva said it “had been proud” providing rail transport in Wales for almost 14 years.

A spokesman said: “We will continue to work constructively with TfW to help make the next franchise a success and build upon the legacy that Arriva has built with Arriva Trains Wales,” said an Arriva statement. We remain fully committed to delivering for our customers.”

Tom Joyner, managing director of Arriva Trains Wales said: “We have been notified that Arriva Group have withdrawn from the bidding process for the next Wales and Borders franchise.

A spokesman for Transport for Wales added: “We would like to thank the company for their support and positive attitude since the procurement started and we will continue to work closely with the company to ensure that existing staff and customers are central to our transition planning over the next 12 months.

“With final tenders due later this year, we have three companies with world-class credentials each putting their own, distinct cases for how they will deliver the ambitious objectives we set, with the goal of delivering a step change in rail services for passengers across Wales and the Borders.”

The remaining bidders are Keolis-Amey, Hong Kong-based MTR Corporation, and the Abellio Group, which operates bus and rail networks across Europe and is the international arm of the Dutch national rail operator.

The new franchise is due to start in late 2018.