Plans for the world’s first integrated train and rail infrastructure testing facility in South Wales has been boosted with £15m in research council funding for a related railway research and innovation centre.
The Welsh Government’s Global Centre of Rail Excellence (GCRE) project, on the site of the former Nant Helen opencast mine and Onllwyn washery in the Dulais Valley, plans to create two electrified rail track testing loops - one extending to 6.9 kilometres able to test high-speed rolling stock at a maximum speed of 177km per hour and an inner four kilometre loop allowing speeds of 65km per hour. It will also be able to test new developments, such as hydrogen powered rolling stock, and infrastructure like signalling.
The £15m funding the Research Partnership Investment Fund has been earmarked for a new centre of excellence for railway testing, validation and customer experience at the GCRE. It follows a successful bid from a consortium led by the University of Birmingham, working alongside Cardiff and Swansea universities.
However, the project - which will aim to leverage millions of pounds further in private sector funding as well as backing from the University of Birmingham - will only materialise if the GCRE, for which enabling work in under way at a site covering 475-hectares, raises £330m. Professional advisory firm EY has been appointed to oversee the fundraising, a combination of debt and equity, on behalf of Welsh Government-owned company Global Centre of Rail Excellence Ltd.
The test track elements have an indicative price tag of £250m. The £400m overall cost of GCRE - for which the UK Government has already committed to providing £20m alongside £50m from the Welsh Government- also includes a hotel, a high-tech business park, rolling stock storage maintenance and sidings, a dual-platform test facility, as well as a control centre and space for related R&D, education and training purposes. The site could also have its own renewable energy sources.
Equity investors will take an ownership stake in the overall GCRE project alongside the Welsh Government. The project has also secured a funding commitment of nearly £8m from the UK Government funded Innovate UK.
If fundraising comes in under target the test tracks could be scaled down, without compromising the university project. However, if it fails to raise enough money for even a scaled down project, it couldn’t happen in isolation. How much equity the Welsh Government maintains post fundraising will be subject to negotiation with investors, who will need to have confidence in the robustness of the business plan with a strong market appetite across the rail industry to use the facility. Transport for Wales, which is owned by the Welsh Government and train maker Hitachi has already committed to using it when it becomes operational in 2025.
The Research Partnership Investment Fund backed project is being driven by the Birmingham Centre for Railway Research and Education (BCRRE) at the University of Birmingham. The centre is Europe’s largest specialist railway research, education, and innovation centre.
Professor Clive Roberts, BCRRE director, said: “As a global leader in railway research and education, we work with partners across the world to develop their workforce and their technical and operational capabilities. We are also a leader in railway enterprise and innovation, the team here continues to work with SMEs through to OEMs (original equipment manufacturers) to keep the railway in operation.
“With this new funding our aim is to have the capabilities and tools to enable innovations to progress from a great idea more effectively to a commercial solution by reducing the cost and risk of projects through the development process. Our focus on railway testing and validation is targeted at the whole innovation process with real-world impact at the forefront of our offering.”
Simon Jones, chief executive of GCRE Ltd, said: World class research and innovation is at the heart of the Global Centre of Rail Excellence mission. Working with University of Birmingham and their partners, which now include the universities of Cardiff and Swansea, will allow us to make this ambition a reality.
“Developing unique R&D facilities that will benefit academia, industry and most importantly passengers and taxpayers is why we have been established. Today’s announcement is the fruit of a lot of hard work and we look forward to taking the next steps together with our internationally renowned partners.”
Welsh Secretary, David TC Davies , said:“This latest significant funding from UK Government for research and innovation at the Global Centre of Rail Excellence builds on our existing £28m commitment to the project and will help ensure the exciting vision for GCRE becomes a reality.
“We will continue to support GCRE as it helps to develop Wales’s place as a centre for innovation, high-skilled jobs and the industries of the future.”
Lee Waters, Deputy Climate Change Minister with responsibility for transport, said:“The Global Centre of Rail Excellence in the Dulais Valley is one of the most critical and creative infrastructure projects happening anywhere in Europe.
“The rail sector, which is vital to the UK’s decarbonisation journey, is spending millions annually testing its equipment and rolling stock. “Much of this spend is in Europe or the US but this award will go some way to ensuring the sector’s innovation is developed, tested and commercialised in Wales.
“There are lots of positives to this including ensuring value for money, creating highly paid skilled jobs and significantly reducing the carbon footprint of rail transportation for the future.
“The award of this new funding to further develop unique research and development facilities, in partnership with the Universities of Birmingham, Cardiff and Swansea is a huge vote of confidence in Wales as we continue to sustain and build an innovative, competitive and greener economy.”
