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Business Potential

a) Freight

The first phase of development for the MCR network is the freight line from Stoke to Cauldon Lowe.

All the lines within the project were originally built by the North Staffordshire Railway in the 19^th Century. The Leekbrook – Cauldon Lowe section was opened later, in 1905, principally to access the extensive limestone quarrying operations at Cauldon, then also owned by the NSR. The line performed this role from the start until the early 1990’s, when road transport took over.

Since then, the economics of heavy freight transport have once again become favourable to rail. This, together with the ever more important environmental policies which now cover transport and land use planning, have created a position which is now overwhelmingly in favour of rail.

The line has very considerable potential for heavy freight in that it is able to directly access the two main Cauldon quarries now operated by Lafarge Cement (bulk and bagged cement products) and Tarmac Aggregates (stone, stone aggregate and coated materials). Also, three further limestone quarries are located within 1½ miles of the railhead and can also take advantage of the line.

Limestone reserves at the quarries are sufficient for at least a further 100 years production.

As all this production is transported currently by road, the scope for a substantial shift to rail and the related environmental benefits this would bring is substantial. Both quarry operators are committed to the use of sustainable transport and have published policies confirming this. All parties, however, recognise that this must produce savings in transport costs for the operators and discussions are proceeding on this firm understanding.

b) Passenger – Alton Towers

The second phase of development will be the reintroduction of rail access to the Alton Towers Theme Park. Originally rail connected by the original Churnet Valley Line through route, but accessible only by road since the mid 1960’s, it is a relatively straightforward matter to restore the rail link from the MCR line at Leekbrook Junction and then via the CVR heritage line to Oakamoor. The remaining 1½ miles to the Towers would use the former trackbed of the original line which remains intact as a footpath in the ownership of Staffordshire County Council.

An access agreement between MCR and CVR has been negotiated providing the necessary rights by which MCR will use the heritage line for access to Alton Towers. This agreement will be completed shortly following which discussions can proceed with the County Council on the use of the former trackbed. MCR is considering the use of the original Alton station (restored and in use as holiday accommodation) or the possibility of a new facility a short distance further south which would give direct access to the park. Both alternatives have their own advantages and, to some extent, depend on the method eventually chosen to access the park from whatever station solution is to be used. It is expected that the new services can be run over the County Council section of the trackbed as a single line operation, enabling the footpath route to be maintained.

The new services will connect with the west coast main line at Stoke enabling the park to be accessed by rail on a nationwide basis and it is also the intention to supplement this by the development of a major rail based park and ride facility so that visitors from the western side of the UK can reach Stoke by car (M6, A50 and A500) and then make the rest of the journey by train. Land suitable for this facility is included within the railway ownership to be acquired by MCR, immediately off the line’s junction with the main line.

There has been pressure for many years to address the car traffic generated by Alton Towers activities and the 2.5 Million people who visit it each year. The use of this network represents the first realistic way of achieving a significant traffic reduction and the positive environmental impact on the region in general is obvious.

c) Heritage Operations & The Churnet Valley Railway

Both the Directors are also longstanding directors and significant shareholders of the CVR. The development and expansion of the CVR is therefore a significant objective for them and the Company provided that it does not conflict in any way with the commercial objectives of the Company.

Having started operations in 1996, the CVR now runs heritage steam and diesel railway services over 5 miles of track between Leekbrook Junction (where it connects with the Company’s network) and Kingsley and Froghall station. It owns an additional 2 miles of line between Froghall and Oakamoor which has not yet been raised to full passenger carrying level.

The CVR is a significant leisure attraction within North Staffordshire annually attracting around 75,000 visitors. Its growth is, however restricted by not having the advantage of running into a recognized centre and by the lack of a main line connection. In order to overcome these restrictions and make further significant growth possible, the Company will make its network available, as part of an overall timetable, to heritage services with the result that the CVR will have access to over 30 miles of line ( including its own track) comprising 4 separate routes, two main destinations ( Leek and Stoke) and a main line connection at Stoke.

In terms of track and infrastructure, the CVR will have access to the largest and most varied private network in the UK. This advantage, together with the central location of the network and close proximity to several major cities, means that the opportunity now exists for the CVR to take up a position at the forefront of UK heritage railways, allowing it to attract the most famous steam engines on a regular basis and increasing visitor numbers. This in itself will be a significant boost to tourism and its related economic benefits throughout North Staffordshire.

The reopening of the Cauldon line in November : 2010 has already provided the CVR with a further 8 miles of line at this early stage in the development of the network. The availability of this line will appear in the CVR’s 2011 timetable.

d) Extending the Line into Leek

The Company, in conjunction with Staffordshire Moorlands District Council, wish to see the Company’s network extended from Leekbrook Junction into Leek, a distance of c. 1 mile using the original railway trackbed. The Council, who own the trackbed, have also identified land in their ownership suitable for the development of a new station site for Leek.

This part of the project would therefore reconnect Leek and the Moorlands District in general with the national rail network at Stoke and enable local commuter passenger services to be developed serving the extensive residential areas between Leek and Stoke.

Once reconnected to Stoke, the possibility exists to utilise a network of former rail routes within the Stoke on Trent urban area to create a light transit system for the North Staffordshire conurbation. The most important of these would enable the establishment of a route through Festival Park (the regions main retail, leisure and business park.) and on into the City Centre. These routes would directly connect with the Company’s network, substantially increasing its passenger potential.