new rail line into Central London.

Britain's rail regulator is expected to make a decision within the next couple of months.

Sea Containers is up against tough competition from First Group Plc who have said that it would spend at least two billion pounds if it gets the job.

The rail routes involved are among the busiest into London's Waterloo station and a tunnel to be erected under the River Thames, would have to be tall enough for double-decker trains.

Participating in a wide reconfiguration of Britain's rail network, First Group is bidding with Dutch rail firm Nerderlande Spoorwegen to take the 20-year South West Trains franchise from incumbent operator Stagecoach .

First Group said its plans would allow both services capacity for the SouthWest franchise to double.

The high-speed double-decker underground service, which would carry suburban passengers from Wimbledon under the Thames and on to Victoria and Kings Cross, would allow central London travellers to bypass London's Waterloo station altogether.

We are going to introduce new services and raise capacity by a quarter over the next three years. By then we will have replaced 570 coaches and started refurbishing 480 more, Moir Lockhead, FirstGroup Chief Executive said in the statement.

Currently, the only "overhead'' cross-London rail service over the Thames is operated by Thameslink .

BUSINESS BUC