The Department for Transport (DfT) has announced the shortlist for the intercity east coast rail franchise.

Having successfully passed the evaluation stage, the three transport groups now have to complete their proposals to take over the service by the end of February. The finalists are FirstGroup, Keolis/Eurostar and Stagecoach/Virgin Trains.

Services on the east coast network were taken back under government control in November 2009 after National Express Group withdrew due to falling revenue. The new operator will be handed a contract lasting eight or nine years, with the possibility of an extension of a further two years.

Rail minister Stephen Hammond called the investment of £35 billion in the rail network the biggest ever, adding: "For our railways to continue to grow, we need strong private sector partners who can invest and innovate in ways that deliver a world class service."

The controversial decision to re-privatise the franchise has been met with anger, with critics describing it as a huge gamble and accusing the government of economic vandalism. Whoever wins the contract will assume control of the service in February 2015.