Rail passengers on the Southend to Fenchurch Street line are set to benefit from a further £20.5million boost, it has emerged.

The surprise cash injection comes hot on the heels of a £300 million investment programme for a new fleet of trains and a further £40 million on station improvements.

The latest funding has been pledged following a radical shake-up of LTS's parent company Prism, which has decided to shed its loss-making services across the country.

Alan Wheeler, spokesman for LTS, said on Friday: "This is tremendous news for customers. It shows our parent company has given LTS a vote of confidence.

"The announcement was made to us just yesterday and it's not yet clear what the extra money will be spent on.

"However, additional station improvements will be the most likely option, to make journeys easier for our customers."

More money could be ploughed into disabled access, electronic ticket systems and state-of-the-art customer information, added Mr Wheeler.

Prism plans to ditch the loss-making Wales and West and Cardiff Railway franchises by March next year.

Other services to be shed include Great Northern by March 2001 and West Anglia until April 2004, following talks with the shadow Strategic Rail Authority.

The company will retain control of the LTS line until the contract comes up for review in 2011.

Chief executive of Prism, Giles Fearnley, said: "We are delighted that it has been possible to conclude our discussions with the rail authority in such a constructive way and within very tight timescales.''

New Electrostar trains were recently introduced on the 50-minute journey - previously dubbed the "misery line" - to replace the old slam-door stock.

However, the production of the new fleet has hit various snags, and their arrival on the line has been delayed.

Mr Fearnley said that this was "enormously disappointing'', and said he was aware of passengers' increasing frustrations at continuing delays.

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