THE starting pistol was fired last night as the race to win a new railway franchise for North-East passengers got under way.

The Strategic Rail Authority (SRA) said it was formally accepting bids for the new Northern franchise which begins in summer 2004.

It combines city and rural routes from both sides of the Pennines, criss-crossing much of the North-East and North Yorkshire.

The franchise, running up to eight years, is being created when Arriva Trains Northern's current business is divided in two next year.

About six companies, including Arriva, are thought to be in the running for the contract.

Arriva, which has grappled with a driver shortage and a long running conductors pay dispute in the past 18 months, has already lost the Trans- Pennine Express franchise linking Manchester, Leeds, York and Newcastle.

It failed to make the final shortlist to run the route which is now being contested between Connex and a pairing of First Group and French transport operator Keolis.

For its part, the SRA has been criticised over delays in the franchise process.

But equally, passenger groups have said time must be taken get the right train operators in place.

SRA chief operating officer Nick Newton said: "The Northern franchise aims to provide better urban and rural services for passengers in the North of England and we expect keen interest from bidders."