Rail operator Arriva Trains Wales has confirmed it has dropped out of the running to bid for the new Wales and Borders franchise.
The current franchise agreement, agreed in 2003, will end next year and Arriva had been on a shortlist of four preferred bidders to run services from 2018 – including the proposed South Wales Metro transport network.
Tom Joyner, Managing Director of Arriva Trains Wales said: “We have been notified that Arriva Group have withdrawn from the bidding process for the next Wales and Borders franchise.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.”
A spokeswoman for Transport for Wales, the Welsh Government organisation responsible for awarding the franchise, said: “Arriva Rail 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.
“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.”
Arriva Trains Wales’ withdrawal leaves Abellio Rail Cymru, KeolisAmey and MTR Corporation (Cymru) in the running to take over rail services next year.