Arriva will no longer run services across Merseyside

The Strategic Rail Authority (SRA) said the joint bid by Serco and NS Dutch Railways had been chosen as preferred bidder.

It will take over the Merseyrail Electrics local passenger network on 20 July from Arriva Trains Merseyside.

Tens of millions of pounds will also be invested as part of a long term plan to create a world class public transport network for the area.

The SRA will also hand over control of the network in July to Merseytravel.

�3.6bn contract

Officials say this will mean problems are given quicker attention and will benefit from local expertise.

The multi-million investment will pay for a completely rebuilt train fleet to make transport more reliable and comfortable for passengers.

Twenty-five stations will also be rebuilt at a rate of five each year.

Serco, which also operates Manchester's Metrolink, said the contract would be worth about �3.6bn over 25 years.

The firm, which was recently voted National Rail Operator of the Year, said its immediate priorities were to ensure recent improvements in punctuality and reliability were sustained.

It also aimed to improve staff and passenger security, train performance and the conditions of stations.

The franchise includes passenger services between Liverpool and Southport, Ormskirk, Kirkby, Hunts Cross, New Brighton, West Kirby, Chester and Ellesmere Port.