PLANS for new companies to run both of south Essex’s rail franchises have been postponed.

The previous Government was seeking new operators to bid for running train services from Shoebury to London Fenchurch Street and Southend Victoria to London Liverpool Street.

Theresa Villiers, Transport Secretary, said the Government had cancelled the bidding competition to run the services until a review of the whole rail franchising system was carried out by the end of the year.

This means National Express will continue to run both franchises for longer, until the autumn of 2011.

The contract for the Fenchurch Street line was due to be put out to tender over the summer with the new operator taking over next May, while the Liverpool Street line contract was due end in March next year, three years ahead of schedule.

Joy Williams, National Express spokeswoman, said: “We welcome the Government review of franchising policy this summer.

“The cancellation of the existing re-letting process for our current franchises enables us to explore opportunities to continue to deliver our industry-leading train performance beyond 2011.

“We remain absolutely focused on the continued successful operation of our National Express East Anglia and c2c rail businesses.”