Dutch firm Abellio has been chosen to operate the £2.5 billion franchise covering ScotRail services from April 2015.

The company is to take over the deal from Aberdeen-based FirstGroup, which has run rail services in Scotland for the past ten years.

ScotRail employs almost 5,000 staff and operates 2,400 train services every weekday. The current franchise arrangements end on March 31st. 

Tim O'Toole, FirstGroup's chief executive, said: "We are very proud of our success in operating First ScotRail and our team were recognised last week, once again, as Rail Operator of the Year."

He added that the company has kept its promises and sustained record levels of service throughout a busy summer for Scotland.

According to Scottish transport minister Keith Brown, Abellio plans to invest millions to improve services, the BBC reports.

However, rail unions reacted angrily to the announcement, claiming it would lead to profits being taken out of Scotland and reinvested in the Netherlands.