The train company which runs routes along the north Wales coast says it will stop running services in the region.

First Group, who own First North Western, have operated services in the area for the past five years but bosses have ruled themselves out of the competition for the new All-Wales franchise.

All- Wales Franchise bidders

National Express Wales and Borders Arriva Serco Rail Kelis Connex GB Railways NS-Dutch railways

Management say they will not compete to continue running the service because it is expensive and time consuming.

Critics claim the decision was made after a run of trouble which included old trains having to remain in service after a fleet of new trains costing �70m were found to have technical problems.

Also, in April, a series of driver strikes disrupted services for around 8,000 rail passengers.

However, First Group's Communications Manager Robin Etherington, denied the claims: "Industrial problems in First North Western played no part in this decision.

"We are heavily committed on other bids and we don't have the resources to bid for Wales and the Borders."

It's not totally unexpected but it's disappointing because people in north Wales know how First Western operate

Dafydd Hughes, Rail Passengers Committee

He added: "We don't think it's fair on First North Western passengers to take managers away from that service to prepare other bids."

The company has ruled that it wants to concentrate its resources on refranchising the First Great Eastern Service, the TransPennine and Northern Franchises.

Eight companies qualified for presenting bids for the All-Wales franchise, including National Express, which currently operates Wales and Borders.

Wales and Borders, Arriva, French company Serco Rail Kelis, Connex, GB Railways and NS-Dutch railways are also bidding to provide rail services to north Wales.

New franchise

Dafydd Hughes from the Rail Passengers Committee said he was not surprised by First North Western's announcement.

"It's not totally unexpected but it's disappointing because people in north Wales know how First Western operate.

"There have been problems for the company and they may feel their money would be better invested in lines to Liverpool or Manchester."

Mr Hughes added: "Some lines require investment and I doubt we will see that much progress now - that's the downside."

Meanwhile, First North Western has promised to remain committed to north Wales until the new franchise is up and running early next year.