Wales’ railway services are set to receive a £5 billion investment boost following the allocation of a new operating contract.

The 15-year contract will run until October 16, 2033, with KeolisAmey taking over the Wales and Borders rail service from Arriva Trains Wales on October 14 this year.

The contract promises to bring a number of major benefits to the area through the £5bn investment.

More than 600 jobs are set to be created through this contract, with staff being recruited in a range of roles.

Passenger travel experience is set to receive a £1.9bn boost, including an £800m investment in trains, boosting overall service capacity by 65 per cent.

All trains will be replaced by 2023 which will mean 95 per cent of journeys will be run on brand new trains.

Stations will also undergo an upgrade, with £194m being invested to modernise all 247 stations with the creation of four new ones.

Investments will also be made to include the installation of new cycle lockers.

Passengers should start to see improvements in service levels from December 2018, with increased capacity on the valleys lines and new services between Chester and Liverpool.

By the end of 2023, passengers are being promised an additional 285 services each weekday across Wales, while Sunday services will be boosted by 61 per cent with an additional 294 services.

'Smart ticketing' promises more flexible fares and cheaper off-peak fares will be introduced, including fare reductions in North Wales and at approximately 50 per cent of stations in the valleys.

New technology will also help to reduce disruption and improve services with more frequent trains, reduced journey times.

James Price, chief executive of Transport for Wales said: “This is the beginning of an exciting journey of transformation that will dramatically improve rail services throughout Wales and its borders and we’ve put our customers’ needs at the heart of this transformation.

“This is more than a significant investment in rail services; it’s also an investment in the future prosperity of Wales.

"The people and communities of Wales will be better connected by new and improved rail services, opening up a wealth of employment, leisure and other opportunities.”

Alistair Gordon, chief executive of Keolis UK, said: “We are excited about the transformation we’re going to deliver here in Wales, working alongside Amey once again and in partnership with Transport for Wales.

"For too long the railways in Wales have suffered from under investment and, while the changes we need to make will take time, we are creating a platform for future economic growth and prosperity that will benefit all of Wales now and for generations to come.

"In five years’ time, the railway will be unrecognisable from what it is today, thanks to the vision of the Welsh Government. We can’t wait to get started.”