The Department for Transport (DFT) has unveiled its shortlists to run the Northern and TransPennine Express (TPE) rail franchises.
The three shortlisted bidders to run the Northern franchise are Arriva, Govia and Abellio and the three competing to operate the TPE are First Group, Keolis and Stagecoach. FirstGroup and Keolis currently operate TPE in a joint venture.
The decision on which operators will run the services is due to be made in October 2015.
The franchises connect passengers travelling between the cities of Leeds, Liverpool, Sheffield, Manchester, Newcastle and Carlisle and onwards to Edinburgh and Glasgow.
The government has promised £1 billion investment for the rail network in the north of England, which it said will provide more capacity, better trains and improved connections.
“The north is undergoing a real rail renaissance, and we will be asking these companies to come up with innovative and ambitious proposals that will ensure a truly world-class rail network for the region,” said rail minister, Claire Perry.
“Building a railway that is fit for the 21st century is a vital part of our long term economic plan, connecting businesses and communities, generating jobs and boosting growth, and we need strong private sector partners to help us achieve this ambition,” she added.
The RMT union has warned the decision could mean cuts to jobs and services.
“It makes a mockery of the consultation that this list of the greedy and the incompetent has been drawn up by the government before the consultation responses have even been opened and before these companies even know what it is that they are bidding for,” said RMT acting general secretary, Mick Cash.
“RMT said from the off that the consultation was wholly bogus, this morning’s outrageous manoeuvring has proved that conclusively and RMT will use every tool at our disposal to expose this racket for what it is.”
In May the DFT confirmed it will award the new Thameslink, Southern and Great Northern (TSGN) franchise to Govia Thameslink Railway Limited.
The DFT claimed it will provide nearly 1,400 extra carriages by the end of 2018 and increase capacity by 50% during the peak morning rush-hour into central London.