Wales has placed an £800m order for 148 "longer, quieter" trains.
KeolisAmey won a £5bn bid in May to run rail services in Wales and the new South Wales Metro for 15 years.
Spanish firm CAF has won a £400m deal to build 77 trains at its new base in Newport while Swiss company Stadler will make 71 to be introduced in 2022.
The new franchise will come into effect from October 2018, replacing Arriva Trains Wales who have operated the Wales and Borders franchise for the last 15 year.
The trains will be delivered from 2022 to 2024 for routes such as Milford Haven to Manchester via Hereford and Abergavenny.
French company Keolis and Spanish-owned Amey already runs the Docklands Light Railway and Manchester Metrolink.
They will manage and run stations along the Welsh Marches Line including Abergavenny, Hereford, Leominster and Ludlow.
The Welsh economy and transport secretary, Ken Skates said: “Through our £5 billion investment in rail services we are introducing innovative, cost effective and environmentally friendly travel solutions that have the needs of our passengers right at their heart. Stadler’s tram trains will make up an exciting part of our new rail offer in South Wales and I look forward to their introduction.”
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