Transport for Wales rail service is to be brought under Welsh government control after significant falls in passenger numbers due to the coronavirus pandemic.

Transport and economy minister Ken Skates said the government has made the move to “stabilise the network and keep it running”.

Under the new agreement, the operation of day to day rail services will become the responsibility of a new publicly owned company linked to Transport for Wales from next February.

Transport for Wales said the agreement is a positive step for the Welsh government, “who now have a sustainable way forward for delivering their ambitious objectives for rail despite the effects of Covid-19”.

They say the agreement “also ensures that key projects aiming to transform the passenger experience, including the delivery of the South Wales Metro, will continue to benefit from the support of KeolisAmey".

Keolis and Amey will continue to work with Transport for Wales “to advise and support across a wide range of mobility areas”, they said.

Mr Skates said: "The last few months have been extremely challenging for public transport in Wales and across the UK.

"Covid has significantly impacted passanger revenues and the government has had to step in with significant support to stabilise the network and keep it running.

"We continue a partnership approach between Transport for Wales and Keolis Amey as we work together to protect services for the Welsh public, safeguard jobs, and secure Metro projects we have been working so hard on over the last few years."

James Price, chief executive at Transport for Wales, said: “I’m pleased with this agreement, which will allow Transport for Wales to continue to deliver the transformation of the Wales and Borders rail network over what is an incredibly difficult period for the industry."