ANOTHER of the bidders to run the Wales and Borders rail franchise from October, including setting up the South Wales Metro, has pulled out of the running.

Abellio Rail Cymru (ARC) was one of four bidders for the contract, but has had to scrap its bid following the collapse of construction giant Carillion in January.

Arriva Trains Wales, which currently runs the service, also pulled out of the running in October last year, leaving two remaining bidders – French joint venture KeolisAmey and Hong Kong-based MTR Corporation.

Wales’ economy and transport secretary Ken Skates said: “Despite the best efforts of the team of experts, lawyers and counsel at Transport for Wales, and the ARC team, ARC has taken the regrettable decision to withdraw its bid having been unable to overcome the impact of Carillion’s liquidation.

“ARC has participated in the procurement process and has contributed professionally throughout.

“I want to express my thanks to the ARC team for their hard work during the process.

He added: “It is unfortunate that, having invested significant time, effort and money into the process that they should be a further victim of the liquidation of Carillion.”

An Abellio spokesman said: “Following the liquidation of Carillion Plc on Monday, January 15, Abellio Rail Cymru has taken the decision to withdraw from the contract letting process for the Wales and Borders Rail Service and South Wales Metro competition.”

Saying "We still have two strong bidders", Mr Skates added the Welsh Government still intended to award the contract in May