PASSENGER watchdogs have urged caution over the awarding of two key rail franchises in the region.

Arriva Trains Northern's current franchise is due to be split into two separate businesses from next February.

Repeated delays have set back the award of an eight- year contract for the trans-Pennine service linking Liverpool, Manchester, Leeds, York and Newcastle.

A new Northern franchise is also being created, combining commuter and local rail routes from both sides of the Pennines.

Critics have attacked the Strategy Rail Authority for dithering over the franchises, which are yet to be awarded.

But Ernie Preston, secretary of the North-East Rail Passengers Committee, said it was prepared to wait for the right decision.

Both franchises are seen as key towards boosting regional economic development and relieving congestion on major arterial roads.

Mr Preston said: "In an ideal world, these new franchises would start sooner rather than later. But on the other side of the coin, we don't want to be too hasty.

"Let's get the right people with the right contract and use an extra six months if necessary to get the best result for the passenger."

Mr Preston suggested that Arriva could be allowed to continue running its franchise beyond February on a "caretaker" basis until a decision was made.

The company delivered its £275m vision for transforming the trans-Pennine service to the SRA in April. It plans to introduce 55 new high-speed trains and create 250 jobs.

However, it has been tipped to lose the franchise to a rival consortium made of bus and train operator First Group and French transport operator Keolis.

First Group and a third bidder, Connex, are promising a multi-million pound investment in new trains and a reduction in journey times.

A decision on the award for trans-Pennine has been expected for some months, with all three competitors having already been asked to submit revised bids following a request from former Transport Secretary Stephen Byers.

Meanwhile, the formal bidding process for the new Northern franchise, for which six companies including Arriva are in the running, is not thought ready to begin before the end of the year.