Rail services between South Wales and London are to be opened up to competition.
Newcomer Grand Union Trains has won the green light from government to start services from the end of 2024 against existing operator Great Western Railway.
The approval to open up great western main line to competition by the Office of Rail and Road (ORR) will see an extra five daily return services.
The rail regulator said the decision would provide “potential benefits in terms of lower fares, improved service quality and innovation for all passengers using the route”.
The approval came despite Network Rail disputing the application by Grand Union Trains due to concerns about capacity on the network.
But ORR has directed Network Rail to enter into a contract with Grand Union “following careful consideration and analysis”.
The company will run new services between London, Bristol Parkway, Severn Tunnel Junction, Newport, Cardiff, Gowerton, Llanelli and Carmarthen.
Grand Union has committed to a “significant investment” in new trains.
It has pledged to reduce journey times from Carmarthen and Llanelli to Cardiff and onto London by around 20 minutes with a commitment to build a new ‘parkway’ station at Felindre, north of Swansea.
The ORR said: “As an ‘open access’ train operator, it will not get paid subsidies from public funds, unlike current operators along the route.
“ORR supports new open access where it delivers competition for the benefit of passengers.
“In making this decision, the regulator has weighed this up against the impact on government funds and effect on other users of the railway, both passengers and freight customers.”
Grand Union Trains first submitted an application to operate on the route in June 2019.
A spokesperson said: “We’re obviously delighted that this important service has been approved but there is much hard work ahead of us.”