A multi-million funding package to reopen an abandoned railway track and create a rail freight terminal in Telford has been completed following the allocation of funding by regional development agency Advantage West Midlands.

The Donnington Railfreight Terminal will be completed by the end of the year and is expected to be fully operational by Spring 2009.

Nick Paul, Chairman of Advantage West Midlands, today announced that the final funding for the scheme had been approved by the Agency.

The investment of £770,000 means the complete funding for the project to go ahead has now been secured with the remaining investment coming from Telford & Wrekin Council and the European Regional Development Fund with English Partnerships involved in the development of sites next to the terminal.

The project is a key scheme in the Transforming Telford portfolio for regeneration and economic development in the town.

In addition to the reopening of 2.5 miles of track from an existing spur off the main Shrewsbury-Wolverhampton line near Wellington – which has been closed since 1991 – works will involve the construction of a rail freight terminal adjacent to Hortonwood Industrial Estate in Donnington, which will be capable of handling all types of freight including containers, palletised and bulk goods.

At full capacity, the terminal will handle four trains each day for 357 operational days a year, as well as creating more than 250 jobs and reclaiming 14 hectares of brownfield land.

Airdrie-based John G Russell (Transport) Ltd. will operate the terminal under contract with the Council and the line will complete a triangle of freight movements linking central Scotland, South Wales (via the western side of the West Midlands) and the south- and south-east coastal sea ports. 

Nick Paul, Chairman of Advantage West Midlands, said: “Transport is one of the key priorities of the West Midlands Economic Strategy and this investment by Advantage West Midlands will have a positive impact on the region’s transport network.

“Not only will this mean companies in and around Telford will be less dependant on road freight transport to move goods, but will also crucially help local, high-technology led companies to maintain a competitive edge with a greener and more efficient logistics solution.

“The rising cost of fuel and congestion means that we are increasingly looking to rail freight as a means of transport and there is a real need for this kind of facility in the west of our region.

“Who would have thought 20 years ago as terminals such as this were being closed down, redeveloped or mothballed because of changing trends towards road freight that we would one day been looking to rail once again as a way forward.

“It is important that we are able to react on behalf of business and ensure that major infrastructure can be put into place to support them in their international trade.”

Telford & Wrekin Council leader Andrew Eade said: “This is more good news for the borough. This is a scheme that is an important part in our plans for the borough’s regeneration, its position as a business location and its transport infrastructure as well as helping to tackle to carbon emissions the borough produces.

“It will provide a significant boost for our economy and the terminal’s construction  alongside the marketing of the 26 acres of land served by the terminal for warehousing and distribution  will bring the bulk of jobs which the terminal is expected to create.”

Peter Roach, Chairman of Transforming Telford, said: “This is great news for Telford.

“The Donnington Rail Freight Terminal will have a tremendous impact on the town’s economy whilst complementing and supporting our economic development portfolio.

“The scheme will open up opportunities for new business as well as existing companies and will encourage employment growth.”