BIDDERS for the second biggest rail franchise in the region are being forced to wait months to see who will win control of the network.

Transport Secretary Stephen Byers was to have declared a winner for the Trans-Pennine Express contract before he left for a three-week holiday, at the end of last week, but he left without making the announcement.

He is now expected to make his decision when Parliament returns in September.

There are three companies vying for the contract, which covers trains running from Newcastle to Manchester and Liverpool.

The competitors are Sunderland transport company Arriva, Connex, and a consortium of FirstGroup and Via GTI.

The battle for the franchise has been going on for 18 months but, following the decision of the Government to award a short-term contract for the East Coast Main Line, it is thought they may now be looking at a ten, rather than a 20-year service.

When he awarded the two year contract to GNER for the east coast line, Mr Byers said he favoured shorter contracts as a way of forcing train companies to improve, but critics have pointed out that such short-term contracts gave train operators little incentive to invest in new rolling stock.

The Association of Train Operating Companies said the two-year ruling had "created great uncertainty within the industry" and this is continuing with the delay in awarding the Trans-Pennine contract.

Rachel Spence, head of policy at the North-East Chamber of Commerce, said: "We needed a long-term decision that would lead to the development of the line, not a stop-gap measure. It seems that the Government cannot make up its mind."

Arriva promised to create more than 400 jobs if awarded the Trans-Pennine line but that, along with the pledges of the other companies, could change if the contract was slashed from 20 years.

Connex, which is favourite to win the contract, had promised an investment programme worth almost £400m for improved lines and new trains, but it is not clear if this would go ahead under a shorter contract.

Although it is being tipped to gain control of the service, Connex has previously been criticised for poor commuter services on its Connex South Central line, in London.