TWO train companies are in the running for new London Waterloo to Weymouth franchise.

The current rail franchise covers routes and stations between London Waterloo, Reading, Bristol, Exeter, Weymouth and Portsmouth.

The new operator will be due to take over the franchise in June 2017.

Despite some speculation that South West Trains - under its parents company Stagecoach South West - would be the only application, the Department for Transport has also shortlisted First South Western Trains Limited.

First South Western is part of the First Group, who also run Great Western Railways (formerly known as First Great Western.)

Both will now need to demonstrate how they will deliver better journeys for passengers.

Rail Minister Claire Perry said: “The South Western franchise has some of the busiest routes in the country, serving a diverse range of passengers and places.

"It is vital that we have the best partner to help us meet the challenge of delivering better journeys for all customers using these services.

“We are investing in additional capacity, and have ambitious plans for smart ticketing, customer service and improved connectivity across the South Western network, to give passengers real benefits across the region and beyond.”

Steve Montgomery, First Rail Managing Director said: "We have extensive experience of running commuter, inter-urban, regional and long distance services - such as those that make up the South Western franchise - and a strong track record in delivering passenger growth, as well as capacity and infrastructure upgrades, on our Great Western Railway and First TransPennine Express networks.

"The South Western franchise plays a crucial role in keeping people moving and communities prospering across the region.

"We are developing an innovative and value for money proposal that will deliver better connectivity and significant improvements for customers. We look forward to the publication of further details by the DfT."