The Department for Transport (DfT) has awarded new franchise agreements covering rail services across the north of England to Arriva and FirstGroup.
FirstGroup is to retain TransPennine services while Arriva has been chosen to take over the Northern Rail franchise.
The two new franchise agreements were let together and will be jointly managed from Leeds by the DfT and Rail North.
The agreements includes a commitment to introduce new trains onto the route and finally retire the unpopular Pacer class within three years.
Transport Secretary Patrick McLoughlin said: “We promised passengers a world class rail service that would make the Northern Powerhouse a reality – and I’m delighted that we have found two operators that will deliver exactly that.
“As a one nation government, we are committed to closing the economic gap between north and south.
“This deal, and the joint management of the franchises, will bring the Northern Powerhouse to life.”
Chris Burchell, managing director of Arriva’s UK Trains division, said: “We are proud to be given the opportunity to transform rail travel for passengers in the North of England and to work closely with our partners to connect towns, cities and communities like never before.
“We will be investing more than £1 billion to deliver a step-change in quality for customers and dramatically improving services, stations, information and ticketing.
“Our aim is to be the communities’ local railway and to leave a positive lasting legacy for the North of England.”
The new TransPennine franchise, which runs from April 1, 2016 to March 31 2023, will introduce 44 new intercity trains by 2019, increasing the fleet size by two-thirds.
The franchise also includes new services to Scotland. A new direct service from Liverpool to Glasgow will be introduced from December 2018 and from 2019, TransPennine Express services will go beyond Newcastle to Edinburgh.
Over the core period of the franchise, excluding the optional two-year extension, FirstGroup will pay back £303 million to the UK government.
FirstGroup chief executive Tim O’Toole said: “Our new TransPennine Express franchise will deliver faster and more frequent intercity train services between the North’s major towns and cities and we are excited to help the Government achieve its vision for a Northern Powerhouse.
“Our plans include investment in new and refurbished trains on every part of the network, with millions more seats available, free Wi-Fi and simpler smart and mobile ticketing, allowing us to build on the success we have had over the past 11 years, in which we have more than doubled passenger journeys on the network.
“We will work with local authorities, customers and community groups to give them a real stake in the future of their intercity rail travel. The new TransPennine Express will connect the North and keep people moving and communities prospering across the region.”
