NEAR this spot nearly 180 years ago, the world's first steam-powered passenger train started its inaugural journey. Near here 50 years ago, the wagon works employed about 2,500 men.

Yesterday, at Timothy Hackworth's old Soho Works, Prime Minister Tony Blair formally opened the £11m museum which is celebrating the North-East's railway past and helping to provide Shildon with an economic future.

Sixty thousands visitors a year are expected to visit the museum. Some may even be fortunate enough to arrive like the VIPs for yesterday's opening, aboard a train pulled in full steam from York by the 1930s engine, the Duchess of Sutherland.

Mr Blair told the large crowd which had gathered for the official opening of the museum: "It is a great tribute to everyone who has been involved in this project. They have done a magnificent job, and it is fitting that it should be in Shildon.

"It would not have been done without the support of local people. This area has gone through a huge change in recent years, and to try and build something new, which also includes our history, is a wonderful thing to do."

The Prime Minister then posed for pictures in the cab of the Flying Scotsman locomotive which had been supposed to haul the dignatories' train.

However, those plans were derailed when the engine developed a boiler fault, and it is now on static display at the museum until Monday.

About 30 pro-hunt supporters had gathered to heckle Mr Blair, but a large police presence kept them at a safe distance.

Richard Dent, regional director of the Countryside Alliance, said: "The last thing that we wanted was to spoil Shildon's day but we want Mr Blair to know that we are not going away."

A spokesperson for Sedgefield Borough Council said: "It has been a wonderful day for Shildon and for the borough. The protestors made their point peacefully and everyone was allowed to enjoy a fantastic occasion."