LA ROCHELLE, France (Reuters) - France's Alstom unveiled a new generation of faster high-speed trains on Tuesday in a bid to keep ahead of rivals Siemens and Bombardier in the multi-billion dollar rail transport market.

The prototype "AGV" — a successor to France's hallmark TGV fast train network — will have a commercial speed of 360 kilometres (223.7 miles) per hour versus 320 for current models, the manufacturer said.

The train was unveiled at a factory in this historic French port town at a ceremony due to be attended by French President Nicolas Sarkozy.

Sarkozy played an important role in a state-orchestrated bail-out of Alstom in 2004.

High-speed trains compete with regional airline destinations for travel time while the electric trains emit far less CO2 greenhouse gases than kerosene-burning aircraft.

Alstom said it has made 70 percent of the trains in the world that run faster than 300 kph.

Alstom has won high-speed train contracts recently in Italy, Argentina and Morocco, while there are big projects on the horizon in California, Brazil or in China for the Shanghai-Beijing link.

"In order to maintain our leadership, we needed to broaden and update our range of products," executive chairman Patrick Kron said at the ceremony, noting the company had developed the train using its own funds.

More use of composites and aluminium allowed Alstom to make the latest version lighter, with an entire train weighing 395 tonnes, down from 430 tonnes. They also use 15 percent less power than rivals.

The AGV is a new generation of the TGV train of which Alstom has sold 650 since it was launched in 1981.

TGV stands for "Trains a Grande Vitesse" and has become a global byword for fast trains, while AGV stands for "Automotrice Grande Vitesse" — a high speed train without a locomotive.

Rather than having a powerful locomotive at the front or back, the AGV uses motors located on the bogies beneath the train. Operators can vary the length of the train from 7 to 14 carriages.

The first AGV is expected to go to Italian private rail operator Nuovo Trasporto Viaggiatori (NTV) which ordered 25 of them worth 650 million euros ($963.1 million), with maintenance and an option for 10 more.

Alstom was part of a speed trial last year that gave a glimpse of even faster trains to come. The specially modified V150 train used both TGV and AGV components to set a new rail speed record of 574.8 kph on April 3, 2007, along a newly built stretch of track in France's Champagne region.

The previous record for a train running on rails was 515.3 kph, set in France in 1990.

The absolute speed record for trains, 581 kph (361 mph), was set in 2003 by a 'maglev' (magnetic levitation) train in Japan. Such trains do not run on rails but glide on a magnetic field.