The Welsh assembly's enterprise and learning committee says it believes Wales is not getting its fair share of investment and needs to meet a rise in demand.
There are calls for a wide ranging upgrade of it's railways with faster trains, improved stations, new carriages and light rail systems.
It said it was concerned passenger satisfaction with stations in Wales was much lower than other parts of the UK.

Official forecasts suggest substantial growth in rail use for both passengers and freight in the coming years and in order to meet this demand, the committee makes a number of recommendations.

It said new high speed links are as important to Wales as other areas of the UK, and that both north-south and east-west links need improvement.

Light rail systems were also called for, for Cardiff, Newport and Swansea.

Recommendations (Enterprise and learning committee):

• Train between Cardiff and Newport
• Consideration of urban light railway systems in Cardiff, Swansea and Newport
• Electrification of diversionary lines between south Wales and London, the Cardiff area and Valleys lines, and the north Wales mainline
• Upgrading the Severn Tunnel
• Improved links and services between north and south Wales
• The introduction of new rolling stock, particularly on the valleys lines
• The devolution of powers and associated specific funding so that Wales can plan and invest directly in future rail infrastructure

Another proposal is to examine the potential for new light railway systems in urban centres such as Cardiff, Swansea and Newport.

But underlying the report is a concern that Wales is losing out on investment, and the assembly government should, as in Scotland, gain much greater powers over the railways.

Committee chairman Gareth Jones said: "This report examines the long-term future of the rail network in Wales.

"The evidence we have gathered indicates that freight and passenger traffic on our network will increase over the coming years.

"The objective hopefully will be that Wales benefits from this extra traffic so that we are better placed in terms of high speed link connections with the rest of the UK and Europe.

"It is important that the Welsh government provides for that extra demand.

"The Welsh government also needs to work with partners to improve the rail links and services between north and south Wales and to make stations fully accessible to all passengers."

The assembly government said it would study the report and respond in due course.