THE company which runs most rail passenger services through Severnside has announced it is pulling out of the race to run the new franchise for Wales and the Borders.

Arriva Group, which owns Arriva Trains Wales, says it does not want to be considered for the new franchise which will run from late 2018.

Arriva runs most of the trains on the route from Cardiff to Cheltenham which stop at Lydney, Chepstow, Caldicot and Severn Tunnel Junction.

The franchise will run for 15 years and responsibility for it has been devolved to the Welsh Government through Transport for Wales (TfW).

A TfW spokeswoman said: “Arriva Trains Wales have notified Transport for Wales that they intend to withdraw from the bidding process for the next Wales and Borders rail franchise.

“It is not uncommon for bidders for major projects to withdraw during the tender process and Arriva have been clear they have done this for their own commercial reasons.

“The procurement pro­cess is a tough and demanding one and we recognise Arriva’s extensive work to date.

“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 three companies now bidding for the franchise are: KeolisAmey, a joint venture between French-owned Keolis and British firm Amey; Hong Kong-based MTR Corporation which currently has transport services all over the world and Abellio Group which is an arm of the Dutch national rail operator.

Tom Joyner, managing director of Arriva Trains Wales, said: “We have been notified that Arriva Group have withdrawn from the bidding process for the next Wales and Borders franchise.

“Our key priority following this announcement is to continue to focus on the delivery of our services for the people and communities that depend on us for the remainder of the current franchise, including a £1m Arriva Trains Wales investment in additional trains which will be introduced in 2018.

“We will continue to work closely with our government and industry partners to support them with the delivery of their priorities.”

Rail union the RMT said the decision by the German-owned company presented a “golden op-

portunity” to take the railway back into public ownership.

Spokesman Geoff Martin said: “This decision by Arriva to abandon their operations in Wales exposes the whole flakey and opportunistic nature of the rail franchising process.

“They appear to have pulled out because they can’t make enough money, which is extraordinary.”

Arriva, which has run the rail network in Wales and Borders since 2003, said it had been proud of providing rail service and the decision to pull had not been easy.