THE announcement of the new contract to run rail services in south Wales for the next 15 years has been called "a fantastic opportunity".

Earlier this week the Welsh Government announced the new contact for the Wales and Borders rail franchise, due to begin in October, will be handed to French and Spanish joint venture Keolis Amey.

The contract, which has been run by Arriva Trains Wales for the past 15 years, will also include the creation and running of the £738 million South Wales Metro scheme.

The project is a key part of the £1.2 billion Cardiff Capital Region City Deal.

And chairman of the region's cabinet Cllr Andrew Morgan called the announcement "a fantastic opportunity to create and deliver a transport infrastructure which supports the aims of the City Deal".

Cllr Morgan, who is also leader of Rhondda Cynon Taf County Borough Council, added: “The Cardiff Capital Region is growing at an exceptional rate, and it is absolutely critical that we create a transport service which can accommodate and connect passengers travelling around the region safely, quickly, and in comfort.

“We understand that the procurement process for this contract was extremely rigorous, and the cabinet looks forward to hearing more details about the plans upon successful completion of the standstill period.”

Chairman of the region's transport authority and leader of Bridgend County Borough Council Cllr Huw David said: “The railway has helped to shape the economic and social history of this region for more than 200 years.

“Connecting our people and communities with places of work and services has never been so important – not just to enable economic growth, but also social cohesion and improved quality of life across the region.”

The full details of the contract - including whether it will include the long-awaited link between Newport and Ebbw Vale - are yet to be announced.

Arriva Trains Wales pulled out of the bidding to continue running the contract in October last year. A second company, Dutch-owned Abellio, also withdrew in February, leaving just Keolis Amey and Hong Kong-based MTR.

MTR's chief executive of European business Jeremy Long said: "Congratulations to Keolis Amey, we wish them every success with the franchise.

"MTR is very disappointed not to have been chosen to run the Wales and Borders franchise, and not to have the opportunity to bring our proven record of providing excellent passenger service, and of successfully delivering railway infrastructure, for the benefit of passengers and the wider community in Wales."

But some have criticised the decision to hand the contract to a foreign company.

Manuel Cortes, general secretary of the Transport Salaried Staffs Association, said: "This is not a good deal for the future of rail in Wales and this announcement shows that, for all the talk of devolution and taking back control, when it comes to rail infrastructure, it's all just hot air."

He added: "What a wasted opportunity by the Welsh Assembly not to have sought public ownership of this franchise or at the very least, a not-for-profit operator.

"But madder still is that the Spanish and the French can follow in the tracks of the German government-owned Arriva and run trains in Wales but not the Welsh Government."

The new contract will mean about 57 per cent of train journeys in the UK will be on services owned by foreign companies.