The proposed Global Centre of Rail Excellence (GCRE) in South Wales is still seeking £330m in private capital before construction can proceed.
The project received an initial £50m investment from the Welsh Government in 2021. The UK Government has also provided research and development funding and a £20m capital grant, taking public funding committed to the scheme to £70m.
The remaining £330m of private capital was intended to bring the overall investment package to £400m. GCRE’s planned opening has moved from last summer to 2030 because the private funding required for construction has not been secured.
Testing and innovation facility
The proposed facility would occupy the former Nant Helen opencast site and Onllwyn Washery in South Wales. It is intended to become the UK’s first net zero operational railway, alongside renewable energy generation, a data centre, hotel and technology park.
GCRE is planned as a testing and research facility for new rolling stock, rail infrastructure and technologies. It would also support certification and skills development. The organisation has said that a combined rail testing and innovation facility of this type does not currently exist at a single location elsewhere in Europe.
Planned infrastructure includes a 6.9km electrified high-speed outer testing track, a 4km electrified low-speed infrastructure testing track, a dual-platform station environment and 25kV overhead line equipment.
Investment challenges
In a recent paper submitted to the Senedd’s Economy, Energy and Connectivity Committee, GCRE identified uncertainty in the UK rail market and the wider macroeconomic environment as the main barriers to securing private investment.
It said the rail market had limited visibility of its future pipeline and lacked committed revenue that could be guaranteed for the GCRE business. The organisation also cited broader economic conditions in the UK.
GCRE was contacted for comment.