ARRIVA Trains Wales will no longer run a Wales rail service after withdrawing its bid to renew the franchise.

The German-based company, which has run the bulk of Wales’ train services since 2003, including the Aberystwyth to Shrewsbury and Cambrian Coast lines, announced this week that it has pulled out of the contest to continue running it from 2018.

Arriva has said Arriva Trains Wales was “no longer participating in the Wales and Borders competition”, adding it had “not been an easy decision”.

There are three remaining bidders - Abellio, KeolisAmey and MTR.

Tom Joyner, managing director of Arriva Trains Wales said: “We have been notified that Arriva Group have withdrawn from the bidding process for the next Wales and Borders franchise.

“Our key priority following this announcement is to continue to focus on the delivery of our services for the people and communities that depend on us for the remainder of the current franchise, including a £1m Arriva Trains Wales investment in additional trains which will be introduced in 2018.

“We will continue to work closely with our government and industry partners to support them with the delivery of their priorities.”

Arriva Trains Wales’ parent company Arriva said it “had been proud” providing rail transport in Wales for almost 14 years.

A spokeswoman for Transport for Wales said: “Arriva Rail Wales have notified Transport for Wales that they intend to withdraw from the bidding process for the next Wales and Borders rail franchise.

“It is not uncommon for bidders for major projects to withdraw during the tender process and Arriva have been clear they have done this for their own commercial reasons.

“The procurement process is a tough and demanding one and we recognise Arriva’s extensive work to date.

“With final tenders due later this year, we have three companies with world-class credentials each putting their own, distinct cases for how they will deliver the ambitious objectives we set, with the goal of delivering a step change in rail services for passengers across Wales and the Borders.”