A TOWN has cemented its reputation as the birthplace of the railways after it emerged that two companies hope to build the UK's first mainline steam train in 40 years.

Darlington is home to the A1 Steam Locomotive Trust charity, which has started a project to build a locomotive at Hopetown Carriageworks.

The £500,000 scheme could be completed in 2007 and it is hoped the engine could be up and running on the main line by 2008.

Now a second contender to build an engine has emerged in the town - steam engine makers the Great Northern Steam Company Limited.

The Darlington-based family-run business said plans to build a mainline steam engine had been discussed, but that it was still at a very early stage.

Keith Ashton, who runs the business with his son, Mark, said: "There's a likelihood this could happen, but at the moment it is not much further on than the idea stage."

The firm, which is based at Cleveland Trading Estate, produces full-size and small-scale replicas of narrow gauge locomotives.

Last year, it produced two full-size replica engines for Laxey Lead Mines Museum, on the Isle of Wight.

Mr Ashton said any plan to build a mainline steam locomotive would not be in competition to the A1 project.

He said: "If we were to get funding for this and go ahead with it, it wouldn't be on the same scale as the other project. We simply don't have the same kind of resources as them at our disposal."

The A1 Trust has already secured at least half of the cash in commitments from supporters, who want to see No. 60163 Tornado completed in Darlington.

It is now in the process of securing the remaining institutional finance for the completion of Tornado, which will become available once the rest of the bonds have been taken up.