Ageing train replacement project 'on hold'

Date: 26/2/2010

Plans to replace ageing trains on the Great Western and East Coast main lines have been postponed until after the general election.

Transport secretary Lord Adonis stated a series of issues were behind the decision to delay the project, including difficulties with finance and a "reduction in the capacity of the debt market to support the transaction".

The super express fleet will link London with cities along the East Coast route, including York, Newcastle and Edinburgh, while others will run from London to Bristol and South Wales.

Existing trains are now 30 years old.

This time last year consortium Agility Trains was announced as the preferred bidder for the project.

The group is made up of Hitachi, John Laing and Barclays Private Equity.

However, Lord Adonis stated a contract will not be drawn up until after the election.

A spokesperson for the group stated its disappointment that the contract is to be delayed.

The project was to create 2,500 engineering jobs.