THE Welsh transport minister Edwina Hart has signalled the Welsh Government's intention of examining the possibility of setting up a 'not for profit' company to succeed the present Arriva Trains Wales franchise.

In a statement issued today, Ms Hart said: "Today I am pleased to announce that I am establishing a not for dividend wholly owned subsidiary company of the Welsh Government, as a key part of our approach to delivering a more effective integrated transport system. This company will, in its first instance, concentrate on providing advice and technical expertise to drive forward the linked projects of the Metro, specifying and procuring the next Wales and Borders Franchise and the Valleys Modernisation and Electrification Project.



"The work of the company and of my department on these projects will be guided by a new Strategic Advisory Board made up of high level industry experts with expertise in integrated transport and engineering.

"This new company will enable us to bring in the technical and commercial expertise necessary to augment my department in delivering these exciting projects. While its focus will be on the three linked rail/integrated transport projects, its remit and role will be able to be extended, as appropriate, to take on the delivery of key aspects of transport delivery and is therefore in line with the commitment to examine the feasibility of the Wales & Border rail franchise being run on a not-for-dividend basis, such as Glas Cymru."

The present franchise expires in 2018.