COACH firm Fraser Eagle is to expand into train travel after becoming the major shareholder in a railway company.

The firm, based in Padiham, has revealed it is now the major shareholder in Grand Central Railway Company a York-based firm which is set to operate trains from London to the North East from next year.

Effectively the move will put Fraser Eagle, which had a base in Accrington until last year, in charge of the firm.

Previously, Fraser Eagle has operated as a managed transport service, providing replacement bus and taxi services for the rail industry in emergencies or for track repairs.

On the morning of the July 7 bombings, the firm provided 200 coaches, 500 taxis and 300 hotel rooms within the M25 for companies affected by the bombings in London.

The company also runs Fraser Eagle World Choice, an independent travel firm, and Fraser Eagle Contracts, developing interiors for hotel groups and design houses.

Kevin Dean, group managing director of Fraser Eagle Group, said: "We are delighted to be involved with Grand Central in the development of this exciting new service proposal and the company has our full financial backing and support.

"We look forward to using our vast expertise in rail operations to help deliver a professional and effective service to Grand Central's future customers.

"Our backing of Grand Central is part of our strategy to consolidate our position as a transport group and move into other forms of transport provision."

The Office of Rail Regulation has given its permission for Grand Central to run high speed train services, three times a day, between Sunderland and London Kings Cross. The service is expected to start in early 2007.

Fraser Eagle Group is the largest supplier of replacement transport services to the UK rail industry, and in 2005, ran 60,000 coaches and 180,000 taxis. It employs 400 people nationwide.

Grand Central was formed in the mid-1990s, and made an initial application to operate rail services in the north England but were refused as the plans did not create enough journey opportunities for passengers.

The new routes will be serviced by high speed trains, capable of travelling at 125mph.