A £155m rail investment programme has been recommended to ease congestion on the south Wales and the valleys lines.
The strategy looks at improving existing services and increasing use
The proposals include up to 10 new stations, new trains and extra services over a 10-year period from 2009.
A consultants' report was backed by 10 local council representatives on Sewta (the South East Wales Transport Alliance).
It is expected to go to the Welsh Assembly Government for further consideration.
Jacobs Consultancy said that if demand for rail services continues at the current rate, new investment, especially for commuters from the south Wales valleys, will be needed.
The new report is looking beyond the current five-year strategy, which includes a new passenger service between Ebbw Vale and Newport and new stations for Llanharan, Energlyn and Brackla.
The report points out that passengers are already experiencing problems on Arriva services in the Valleys, especially with reliability and getting a seat.
It is suggested that extra services and longer trains will be needed if demand continues to rise.
- More frequent services for the Rhymney Valley, Taff Vale, new Ebbw Vale to Newport line, Abergavenny and Chepstow, and the Vale of Glamorgan
- More frequent and longer trains for peak times
- Five new stations at Caerleon, Magor, Llanwern, Coedkernew and St Mellons
- Look at possible line extensions to Ebbw Vale Town and from Pontyclun to Beddau with new stations including Talbot Green and Llantrisant.
- Bus links from stations to more remote communities
The Rail Passengers' Council Wales represents the interests of rail users and its director Clive Williams said the recommended investment was "excellent news" and "long overdue".
"There has been a 30% increase in patronage on the Valleys Line and this is very much in line with the recommendations," said Mr Williams.
He added that he wanted to see the programme implemented as rapidly as possible and said it followed the Welsh Assembly Government's commitment to sustainable transport.
The study looks towards EU Objective One money for reducing the capital cost, private finance partnerships for some stations, as well as increasing the rail subsidy of between £2m-£7m a year.
Sewta's board said it had agreed to "commission further technical, economic, demand and specific development work in preparation for its implementation".