THE franchise for the North's railway services has gone to a Holland-based operator.

The Strategic Rail Authority (SRA) yesterday announced it had selected Serco-NedRailways as preferred bidder for the Northern Rail network, which stretches from Tyne and Wear through County Durham and North Yorkshire and across the Pennines to West Yorkshire, Manchester and Merseyside.

The network takes in 1,675 miles of the national rail network, 265 diesel and electric trains, and 475 stations.

All of the 4,000-plus staff on the routes, presently employed by Arriva and FirstNorthWestern, will transfer to the new operator.

Union leaders reacted with indifference to the announcement.

Stan Herschell, regional organiser of the Rail, Maritime and Transport Workers Union (RMT), said: "It is essentially a case of different day, same rubbish. It means new uniforms for staff, but the same old rotten trains."

Operators are subsidised with hundreds of millions of taxpayers' money. In January, FirstGroup-Keolis revealed it would receive subsidies totalling £637m over eight years to run the Transpennine Express rail route.

A spokesman for Serco-NedRailway said details of its Government subsidy were "commercially sensitive", but would be announced after further contract talks with the SRA.

NedRailways is part of Holland's state-owned rail operator - the equivalent to the UK's former British Rail.

UK-based Serco is one of the world's biggest public service operators, and specialises in cutting through red tape and improving efficiency.

Last year, the partnership was awarded the contract to operate the 25-year Merseyrail Electrics concession on Merseyside - recognised as one of the best performing rail franchises in the UK.

The new franchise, which will provide inter-urban, commuter and rural services throughout the North, will start this autumn.

At present, the network is split between two operators - Sunderland-based Arriva and FirstGroup plc. They both failed in bids for the Northern Rail contract.

Serco-NedRailway will hold the franchise for a minimum of six years and nine months, with an extra two years available if it meets performance targets set by the SRA.

These include reductions in train cancellations, improved punctuality and ensuring station and train quality.

Consumer group the Rail Passengers Committee (RPC) welcomed the move.

North-East RPC chairman Christine Knights said: "The committees will expect the new franchisee to provide high quality services for the region's passengers - train services that are clean, reliable, punctual, affordable, accessible and comfortable, with well-trained and highly motivated staff."