EAST Coast Main Line operator GNER has joined forces with Chiltern Railways owner John Laing to bid for a new rail franchise.

The two partners will form London and Western Railway Company, to bid for the Greater Western franchise.

Greater Western, due to be introduced in 2006, will merge services run by First Great Western, Thames Trains and Wessex Trains, which together serve 297 stations in the West of England, south Wales and the Thames Valley.

The franchise is expected to account for 65m passenger journeys annually, generating a turnover of about £550m.

Andy Friend, chief executive of Laing, said: "We are combining the UK rail network's two leading operators to create a powerful bidder for the Greater Western franchise."