Prism has not specified where the stations could be located - it said new ones could be built or some closed down years ago might be reopened.

We will speak with local authorities first because they know what the need for services is

Sharon Wells, Wales and West

Prism's vision is to see the railways of Wales run as one integrated network, rather than the mix of seven operators at present.

Sharon Wells from the company's Wales and West division said: "We will speak with local authorities first because they know what the need for services is."

The company said its chief aim was to reverse decades of decline suffered by the rail network in Wales.

Our 20-year plan for Wales demands that we are an economic force and not just a transport operator of last resort

Dominic Booth, Prism

Prism plans to open five new stations by 2002, followed by another two every year for the remaining 20 years of the franchise.

Prism spokesman Dominic Booth said the company's plans were based on linking new jobs to new stations.

"Our proposals for Wales really do offer a once-in-a-lifetime opportunity to reverse the decline that the rail network has suffered over 30 years," he said.

"Our 20-year plan for Wales demands that we are an economic force and not just a transport operator of last resort."

The company plans to work with local authorities to determine the need and order of priority in which stations should be built.

Mr Booth added: "Prism envisages more trains serving more places and to do that we'll need more people."