SOUTH Western Railway could be renationalised after recording a loss of £137million.

The Weymouth to Waterloo operator admitted that its existing contract could be terminated within 12 months after strikes, timetabling problems and delayed track upgrades.

The company's auditors, Deloitte, said that “material uncertainty exists and it may cast significant doubt on the company’s ability to continue as a going concern”.

It warned the strike-ridden train network's future is at risk as it battles a string of challenges.

Deloitte revealed in SWR's accounts it is at risk of being nationalised by the Department for Transport (DfT).

Alternatively, owners London-listed FirstGroup and Hong Kong-based MTR could be forced to submit a fresh plan to the Government to run the line on a short-term basis.

It said it was in discussions with the Department for Transport (DfT) over changes to the franchise, with the possibility of a new short-term deal under revised terms.

Alternatively, the existing contract may have to be torn up within a year, with services on the line being taken over by the government, it said.

TSSA (Transport Salaried Staffs' Association) General Secretary, Manuel Cortes, has called for South Western Railway (SWR) to be brought into public hands “without delay”.

Commenting, Manuel Cortes said: “Yet again this is stark evidence that the franchising model on our railways is a complete and utter failure.

“South Western must come into public hands without delay - that is the only way to protect commuters across London and south west. The Department for Transport (DfT) must now wake up to the fact that profiteers are running the network into the ground.

“Only by having railways run by the public for the public can we guarantee commuters a railway fit for use.”