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Birmingham Post
Birmingham Post
Business
Sion Barry

World's first integrated train and rail infrastructure testing facility boosted with land deal

A £250m project to build the world’s first integrated testing facility for trains and rail infrastructure has taken another significant step forward with the acquisition of a huge former opencast mine.

The Global Centre of Rail Excellence (GCRE), a Welsh Government project which is being delivered via an at arm’s length special purpose vehicle company of the same name, will see two - inner and outer - circular testing tracks built on the site of the former Nant Helen opencast site and Onllwyn washery in the Dulais Valley.

After securing planning consent GCRE has now acquired the 700 hectare site - which is equivalent to the size of Gatwick Airport or Gibraltar, from Celtic Energy. The value of the land acquisition deal has not been disclosed.

Inflation has seen the project’s cost rise significantly from its initial concept over two years ago. However, the Welsh Government has committed £50m with £20m in non repayable grant funding from the UK Government, an element of which has already been drawn down. Professional advisory firm EY has been appointed to raise more than £100m in equity investment with around £70m anticipated in debt finance. They will publish a fundraising prospectus shortly.

A team of consultants and contractors including Hirwaun-based Walters Group, Atkins, Fifth Studio, Arcadis and Mott MacDonald are now working to design the site and begin preparation for construction early next year.

The site straddles both the local authority areas of Neath Port Talbot and Powys, which both granted planning permission.

Construction of the GCRE will see:

  • Phase one - the provision of sidings for rolling stock from the summer of 2023 which will be able house around 400 carriages. It could be used for rolling stock that has come to an end of leasing agreement with a train operating company while awaiting redeployment
  • Phase two - the building of two electrified test loops, one high speed test loop 6.9 kilometres long and a 4km infrastructure test loop, together with supporting infrastructure and buildings from 2024.
  • Phase three - expanded stabling, maintenance, and commissioning facilities along with research facilities, a 100-bedroom hotel, and business park in 2025 and ongoing.

The biggest current rolling stock testing facility in Europe is at Velim in the Czech Republic, with its high-speed loop. However, the facility is in huge demand with waiting times of up to three years. With some live train testing on the exiting UK rail network, once operation the GCRE will free up some capacity for passenger and freight trains. The world's only existing major rail infrastructure testing facility is in US. The GCRE will be able to test all types of rolling stock including high-speed trains and emerging hydrogen powered. Trains being tested on the 6.9km outer track will be able to reach speeds of around 180 kilometres per hour.

The project already secured significant market interest from potential users both in terms of rolling stock testing and infrastructure in the UK and internationally.

Economy Minister Vaughan Gething said of the project: "Its significance to the local community and the Welsh economy should not be underestimated. This is a vital regeneration project which will create much-needed jobs and skills. I’m confident it will support a bright industrial future for the Dulais Valley and the surrounding area.”

Deputy Minister for Climate Change, Lee Waters, said : “The GCRE will be a unique facility offering world class testing of infrastructure, rolling stock and new technologies that will fill a much-needed gap in the rail industry.

“Crucially, it will help manage the cost of rail projects by testing ideas earlier before their deployment on projects and support the vital innovation we need to get to net zero.

" formal acquisition of the land now paves the way for the start of construction by allowing GCRE and their contractors to take control of the site and begin to establish the infrastructure required to turn this ambitious and exciting vision into reality.”

Chief executive of GCRE, Simon Jones - formerly the Welsh Government’s senior transport civil servant, said:“We are moving at pace to deliver on our ambitious plans to deliver a modern and comprehensive rail testing and innovation facility, building our team and preparing for construction with the aim of having our commercial rolling stock storage facility available to the market within the next 12 months.

“The next stage of our procurement process will begin shortly with both a meet the buyer event and the launch of a separate innovation competition next week to give potential suppliers and partners the opportunity to find out more about how they can get involved. This will be followed by the launch of an exciting investment prospectus to attract private funding for the project. With the support of the Welsh and UK governments and Powys and Neath Port Talbot local authorities, we really are on a mission to put Wales and the UK at the very heart of 21st century sustainable transport innovation.."

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