ALTHOUGH it is far from perfect, GNER was clearly the people's choice to continue running services on the East Coast Main Line for the next seven years.

As rail operators go, it has performed well and its bid had the cross-party support of politicians, the business fraternity and everyday rail users.

But the retention of the contract has come at a high price, with GNER having to pay far more in annual premiums to the Government. It remains to be seen whether the company is capable of delivering those premiums without imposing service cuts and big increases in rail fares, which are already unacceptably high.

Along with the investment we are seeing in the region's airports, a cost-effective and reliable rail service is vital to the economic well-being of this region.

If the North-East is to prosper as a place to do business, it has to have improved transport links to match that ambition. Joining up Darlington railway station and Durham Tees Valley Airport with a dedicated coach service is one example of the kind of enhanced service that is required.

But, of course, there is still considerable room for improvement. While 80 per cent of trains running on time might be a good performance compared with other operators, it still means a lot of commuters arrive late at their destinations.

And for too many of them, travelling by train is an unpleasant experience, in overcrowded carriages.

GNER is a deserved winner of the race for the East Coast Main Line prize. It has a very tough challenge ahead and we wish it well in delivering, not only the expensive premiums demanded by the Treasury, but also the improvements expected by passengers.