The new northern franchise will be awarded in 2004

The route will provide inter-urban, commuter, and rural services across the north of England from late 2004.

That route will amalgamate Arriva Trains Northern's current non-express routes in north-east England with those of train operator First North Western.

It will link Tyneside, Wearside, and Teesside, to Merseyside, Yorkshire, Cumbria, and Manchester.

The shortlist is Arriva Trains Ltd, Eurailco UK Ltd, FirstGroup plc, GB Railways Plc, and Serco Rail-Netherlands Railways

The franchise will last seven years depending on final bids.

In the next stage of the franchising process the Strategic Rail Authority (SRA) will invite the five parties to submit detailed bids, with a preferred bidder named in spring 2004.

The SRA said the application process has provided interested parties with "clear guidelines and incentives on customer service and on business priorities".

Richard Bowker, SRA Chairman said: "The qualification threshold was set at a very demanding level indeed to ensure the best possible competition on behalf of passengers and taxpayers."