A RAIL industry joint venture behind East Coast services could oversee a new £55.7bn high-speed route.

The Stagecoach and Virgin partnership is on a shortlist to operate HS2.

The endeavour already oversees the Virgin Trains East Coast service under the Inter City Railways banner and will use rolling stock made at Hitachi Rail Europe’s factory in Newton Aycliffe, County Durham, from next year.

However, if successful, the venture, which has joined forces with France’s SNCF for its HS2 bid, will add the West Coast Partnership franchise to its portfolio.

The first phase of HS2, between London and Birmingham, is scheduled to open in December 2026, with followup phases, taking in the West Midlands, Crewe, Manchester, Birmingham and Leeds, expected to open thereafter.

The shortlist is completed by FirstGroup and Italy’s Trenitalia, which have formed a joint venture, and a partnership between Hong Kong’s MTR, China’s Guangshen Railway Company and a number of subcontractors.

Martin Griffiths, chief executive of Stagecoach Group, which also runs bus services across Teesside, Hartlepool, Sunderland, Newcastle and South Tyneside, said it was excited by its HS2 bid.

He added: “This creates a powerful world-class partnership, bringing together the team which has transformed intercity rail travel in the UK with the most recognised and capable high-speed operator in Europe.

“The new franchise has an important role to play in delivering the improvements and space on our railway that can support our communities and economy.

“Together, we have a very strong track record of working effectively with other rail partners and infrastructure providers, as well as using technology to achieve a step change in customer service.”

Transport Secretary Chris Grayling said the Government was keen to ensure HS2 “becomes the backbone of Britain’s railways”, by creating “more seats for passengers, improving connections between cities and generating jobs and economic growth throughout the country.”

However, the RMT rail union expressed its anger that the shortlist doesn’t feature a public sector bid.

Mick Cash, general secretary, said: “It is a scandal that the cheaper, more efficient public sector option has been excluded from the bidding process.”

Earlier this year, Hitachi confirmed work on body shells for trains known as Azumas, which will be used next year by Virgin Trains East Coast, had started.

Initial work is being overseen in the company’s Japanese heartland, with the structures due to arrive at Aycliffe later this summer for manufacturing to start in earnest.

Bosses say the trains will provide operator Virgin with an extra 12,200 seats, increasing its capacity into London King’s Cross by nearly 30 per cent at peak times.