The Transport for Wales rail service is to be brought under Welsh Government control from next February.
Ministers have confirmed the takeover from KeolisAmey, with day-to-day services to be run by a publicly-owned company.
It follows significant falls in passenger numbers during the pandemic.
The Welsh Tories questioned how much nationalisation will cost taxpayers, while Plaid Cymru called for the Senedd to be recalled.
Transport for Wales rail services to be nationalised
Probably do a better job, as long as all jobs are safe! Now hand the Wrexham - Bidston line over to Mersey rail, get it electrified and direct trains to Liverpool in an hour https://t.co/e0Db5adDiQ— Niamh’s Bees (@jtgardens) October 22, 2020
Economy Minister Ken Skates said the government had stepped in "to stabilise the network and keep it running".
"The last few months have been extremely challenging for public transport in Wales and across the UK. Covid has significantly impacted passenger revenues," he said.
A "new partnership" with the company will be developed to help deliver rail improvements such as integrated ticketing, the Welsh Government said.
Kevin Thomas, chief executive of KeolisAmey Wales, said: "In light of Covid-19, we recognise the need for Welsh Government to have a sustainable way forward for delivering its ambitious objectives for rail."
It comes after the financial risk of the Wales and Borders rail franchise, which is branded Transport for Wales, was taken over by taxpayers under an agreement signed in May.
At the time the Welsh Government said it was putting up to £65m into rail services.
KeolisAmey was awarded the franchise in 2018, taking over from Arriva Trains Wales.
Amey Keolis Infrastructure Ltd will continue to be responsible for infrastructure management on the Core Valley Lines, where the south Wales Metro upgrade is taking place, the Welsh Government added.
Latest Stories
-
Military officer shot dead over land dispute at Kasoa
44 mins -
ShoreCare: KNUST students organise clean-up exercise at Allan and African beaches
5 hours -
Ejisu by-election was an election of inducement – Hopeson Adorye
6 hours -
Air Quality: World Bank unveils $1 billion guarantee to bolster clean air projects globally
6 hours -
Dumsor Diaries: The struggle of tailors and seamstresses to make ends meet
6 hours -
Chiefs standing to greet the president at public events is apt – Chieftaincy Minister
6 hours -
60 farmers in Kumasi receive training on traditional leafy vegetables
6 hours -
MP who allegedly bribed EC agents must be arrested – Mustapha Gbande
7 hours -
NPP’s Kwabena Boateng leading in Ejisu by-election
8 hours -
Dominic Obour: Beware of rented media and socio-political liars
8 hours -
Partnership launched to provide pensions for small-scale farmers
8 hours -
Ejisu by-election: Why would I bribe election officials in public? – asks Kingsley Nyarko
9 hours -
Vinicius scores twice as Real Madrid draw against Bayern in Germany
9 hours -
I’m doing well – Amerado assures fans after stage mishap
10 hours -
EC asks police to start criminal investigation into Ejisu by-election ‘white envelope’ bribery allegation
11 hours