Dutch rail operator Abellio will run ScotRail services from April 2015, after promising to invest millions in improving services.
The transport union RMT has criticised the Scottish National Party for supposedly 'colluding' with Westminster to stop public ownership of the franchise.
But the Scottish Government say they didn't have a choice - and argue it's good news for the South of Scotland.
Joe Pike has more:
The franchise for most of Scotland's train services - including the Borders Railway - has been won by a Dutch company.
Current operator FirstGroup has lost out to rivals Abellio - who will run services for the next decade.
The franchise to run Scotland's trains for the next decade has been awarded to Dutch rail operator Abellio, transport minister Keith Brown has confirmed.
The announcement comes after current Scotrail operator FirstGroup revealed it had failed in its bid to continue to run the rail service from the spring of 2015.
Mr Brown said Abellio will invest millions in providing an improved service and facilities for passengers and a better deal for staff.
The new contract includes benefits for passengers such as:
- Free wifi on all trains
- 23% more carriages across the network
- Reduced fares for jobseekers
- High-speed intercity diesel trains
- Over a third more seats.
After yesterdays delays on the Carlisle to Preston line Virgin trains have confirmed services are back up and running as usual.
Network Rail completed repairs on schedule by 6am this morning.
There are currently no trains running between Carlisle and Penrith due to a person being hit by a train on the line.
The delays are expected to continue for the next few hours and are affecting people travelling between Preston and Glasgow Central, and Preston and Edinburgh Waverley.
Passengers travelling between Carlisle and Lancaster are facing delays of up to 45 minutes.
It's due to a broken down train at Penrith, which is blocking southbound lines.
A man has died after being hit by a train.
The incident happened at about 9:15am between Penrith and Oxenholme Lake District.
Replacement bus services are currently running for First Transpennine Express customers between Carlisle and Oxenholme.
There are also disruptions to Virgin Trains.
Train services across the region have been cancelled due to flooding.
The Northern Rail service is currently suspended between Carlisle and Maryport due to flooding at Aspatria, where the line is blocked.
Northern Rail are looking to source replacement buses, and there is no estimate for when normal services will resume.
There are also delays of up to 30 minutes on trains between Edinburgh Waverley and Carlisle due to flooding between Lockerbie and Carlisle.
Train services in Cumbria could be delayed of cancelled after a landslip.
The landslip occurred near Appleby, affecting routes to Carlisle.
Train companies say the rise in rail prices will provide money that will be spent improving services.
We asked commuters at Carlisle Station what they thought about the price hikes.