TRANSPORT firm Arriva has won a £150m contract to operate two rail franchises in Denmark.

Sunderland's Arriva is the largest provider of bus services in the country, and will be the first private company to operate rail services for the Danish Government.

The two franchises, which will serve the Mid and North Jutland areas of Denmark, will run for seven years from January 2003.

Arriva's chief executive, Bob Davies, said: "We are delighted to win these two franchises, the first to have been tendered by the Danish State.

"The transport market in mainland Europe is at an exciting stage and we are well placed to achieve our ambition to be recognised as the leading transport services organisation in Europe.

"Arriva is already one of the largest providers of passenger transport in mainland Europe, with over 3,500 vehicles.

Its mainland European rail operations also include a joint venture with Dutch Rail, running services in Friesland and Groningen. It operates buses in The Netherlands, Portugal, Spain and Sweden.