A contract to run Wales' rail service for the next decade has been awarded to Frances Keolis and Spanish-owned Amey, whose bid triumphed over a rival offer from Hong Kong's MTR commuter railways. The company said while the changes would not happen overnight, Wales' railway “would be unrecognisable” in five years time.

Upon successful completion of a 10-day standstill period, the contract will run from June 4, 2018, to October 14, 2033, with rail services transferring on October 14, 2018. This standstill period is normal procurement practice.

KeolisAmey is a joint venture partnership of international public transport operator Keolis, and infrastructure asset management specialist Amey.

KeolisAmey currently runs the Docklands Light Railway (DLR) in London, which has one of the best records in UK rail – consistently better than 99% reliability. Additionally, they operate and maintain Greater Manchester’s Metrolink – the largest tram network in the UK.

Alistair Gordon, chief executive of Keolis UK, said:

“This will be a transformative new rail service for Wales and its borders which will see Keolis once more combine its worldwide expertise in passenger operations with Amey’s engineering excellence. “We look forward to the successful completion of the procurement process – this exciting contract will deliver for all of Wales. The procurement process was rigorous, resulting in transformative solutions for the benefit of all in Wales, and indeed, future generations. “While the proposed changes won’t happen overnight, the railway will be unrecognisable in five years thanks to the vision of the Welsh Government.”

Andy Milner, Amey’s chief executive, said:

“Building on our successful partnership with Keolis, which already sees us deliver two high performing services – the Greater Manchester Metrolink and London’s DLR – we are honoured to be asked to operate the Wales and Borders service. “This is a great opportunity for us to use our joint capabilities to deliver a first-rate service for Wales. We will be focused on working with Transport for Wales to transform the existing infrastructure and introduce new trains to significantly improve the passenger experience, as well as creating hundreds of new jobs and apprenticeship opportunities.

Arriva, the transport company which has run the Wales and Borders franchise for the last 15 years, pulled out of the running in December .

. Keolis is France's largest private sector public transport operator – but it is three-quarters owned by SNCF, the French state railway.

Amey was a listed UK company until it suffered a Carillion-style collapse 15 years ago. It was then bought by the Spanish infrastructure giant Ferrovial, which is the key shareholder and manager of Heathrow airport.

Economy Secretary Ken Skates, said:

“Throughout the procurement process we have prioritised investment in the quality of trains, stations and services for the Wales and Borders Rail Service and South Wales Metro. “We are grateful to all those who have participated in the procurement process.”

He said no further comment would be made until the end of the 10-day standstill period.

Harri Lloyd-Davies, President of the South Wales Chamber of Commerce, said: