First Great Western has made the shortlist for the route

Stagecoach, First and National Express handed in their bids to the government to run the seven year rail franchise.

The franchise combines the current areas run by First Great Western and Great Western Link and Wessex Trains.

First promise performance improvements, National Express will concentrate on solving overcrowding and Stagecoach said they will invest in trains.

The Department for Transport (DfT) will decide on the winning bidder early in 2006.

Train investments

The winner will then operate long-distance, regional and local services in the Thames Valley, Cotswolds, Bristol and the surrounding area and the West of England with some cross-border services into South Wales.

First's bid also said it will improve investment in performance, customer service, stations and trains.

Company chief executive Moir Lockhead said: "We have in-depth experience of the new franchise area and have built strong relationships over many years."

Stagecoach, which is bidding as Brunel Trains, said it will make a "multi-million pound investment in trains, depots and stations".

Brian Souter, chief executive of Stagecoach, said: "We believe we have developed a compelling and winning package that can transform Greater Western into a national model."

National Express said part of its bid is to have more peak hour seats out of London and more 125mph trains.