THE new operators of cross-country rail services between the North-East and the North-West have promised more jobs, new trains and improvements to local stations as they try to attract travellers away from their cars.

FirstGroup, a leading British train and bus operator, and Keolis, a major transport company based in France, signed contracts with the Strategic Rail Authority on Wednesday of last week to operate the new Transpennine Express franchise.

Transpennine routes link Teesside, Darlington, North-allerton and Thirsk with Liverpool and Manchester, but the standard of services run by the existing franchise holder, Arriva Trains Northern, has been dogged by controversy.

The new FirstGroup and Keolis franchise, starting early next year, will involve merging certain routes and services at present run by First North Western and Arriva Trains Northern.

It will run for eight years, with an option for a five-year extension, and the companies expect about 13m passenger journeys a year to be generated.

They have signed contracts with the German manufacturer Siemens for a new £260m fleet of 100mph trains, involving up to 168 coaches in 56 three-car sets, and for two new maintenance depots for the services on both sides of the Pennines.

Arriva Trains Northern at present operates ageing Class 158 diesel sets inherited from the previous British Rail. They were introduced in 1990 and have a top speed of 90mph.

FirstGroup and Keolis are also recruiting extra staff and managers to develop the franchise. The companies have plans for creating about 200 jobs.

Moir Lockhead, chief executive of FirstGroup, which already runs buses in York and other cities, said: "We can't wait to get started. We have a major role to play in developing high-quality public transport and providing an attractive alternative to the car on these vital routes."

Keolis director Jean-Pierre Deghaye said: "Today is a great achievement but the most important task is still ahead of us, to deliver what we have promised the SRA and our passengers."

Other plans include upgrading all 30 stations to be managed by the franchise, revising timetables to offer departures which are attractive and easy to use and which reduce delays, improvements in staff training and customer service, and more integration of rail and bus services, with better connections and through ticketing arrangements.

The franchise holders will have headquarters in Manchester but senior managers will also be based east of the Pennines to ensure that train service reliability, punctuality and customer service are maintained and improved.

At one point, the crisis facing Arriva Trains Northern on parts of the TransPennine route was such that the company was forced to replace trains with buses on some services in the Vale of York because of a shortage of drivers.

The firm was also hit by a series of strikes by conductors in a pay dispute and in 2001 it was fined £2m by the SRA for what was considered poor performance.

More recently, the company found itself at the centre of fresh controversy, on the Esk Valley line between Middlesbrough and Whitby over proposals to transfer schoolchildren from trains to buses.

The company said refurbishment of rolling stock meant there would not be enough seats for the children, but campaigners against the move eventually won the day.

FirstGroup already operates four rail franchises in various parts of the country. Keolis is the largest private transport operator of France, but is also responsible for services in six other European countries.

At first it was feared by North-East transport watchdogs that Connex, heavily criticised for its performance with commuter trains in the South-East and finally stripped of its franchise by the SRA, would be in the running for the TransPennine operations.

It was announced two months ago, however, that FirstGroup and Keolis were the preferred bidders.

* Arriva Trains Northern has introduced its winter timetable. Copies are available from stations and on the company web site, www.arrivatrainsnorthern.co.uk. Timetable information for all train operators, including Arriva Trains Northern, is also available from National Rail Enquiries on 0845 7 48 49 50.