ARRIVA has been selected to run new services in Wales - the day after its successor for the Transpennine Express franchise was named.

The North-East transport company is the preferred bidder for the Wales and Borders franchise, the Strategic Rail Authority (SRA) said.

Arriva loses Transpennine - which links Liverpool, Manchester and Leeds with the North-East - to a consortium of First Group and French rail operator Keolis early next year.

It is still in the running for the Northern rail franchise, which will combine rural and commuter routes on both sides of the Pennines.

Euan Cameron, managing director of Arriva Trains said its expertise in rail meant it was able to respond to the needs of different countries and communities.

He said: "The latest SRA figures show that out of the four train companies operating in the North-East of England, Arriva Trains Northern is now the highest performer in terms of punctuality and reliability - and we have pledged to bring further improvements."

The Wales and Borders franchise includes all local and regional passenger rail services in Wales and services from Cardiff to Hereford, Shrewsbury and Manchester, and those from Wales to Birmingham, North-West England and the West Country.

The National Express group is the present holder of the franchise.