HISTORY was made this week as the first turf was cut at the launch of a £10m railway village.

Derek Foster MP for Bishop Auckland did the honours at a ceremony to celebrate the start of construction work at the multi-million pound project in Shildon.

He said: "This is the most exciting day for Shildon in my 24 years as a member of parliament.

"It means we are building a brand new future in tourism based on the glorious past of Shildon. We are hoping that something like £1m a year will be coming into the local economy.

"Shildon was there at the birth of the railways. Now the railway village will lead the rebirth of Shildon.''

Dignitaries and project sponsors joined Mr Foster on the site where the 6,000 sq metre collections centre is to be built.

The single storey building will house up to 60 vehicles from the National Railway Museum's collection, making it the first-ever 'out-station' for the NRM.

The venture, which is a partnershipbetween Sedgefield Borough Council and the museum is expected to attract more than 60,000 visitors a year. It has been funded by special project money with grants from the Heritage Lottery Fund, the European Regional Development Fund and One Northeast with contributions from Sedgefield Borough Council, the department for Culture, Media and Sport and Northern Rock.

As part of a £70m government funding deal for museums across the country, extra cash has been set aside to allow admission charges to be abolished for at least three years.

Andrew Scott, head of the National Railway Museum, said: "It is good to finally see something happening on the ground.

"What has been really good about this project is how the wide range of organisations have pulled together to bring it about.''

Phil Ball, head of leisure at Sedgefield Borough Council, said that the railway village is one of the most important projects that the council had ever worked on.

He said: "We are seeing this as an opportunity for the regeneration, not just of the town of Shildon, but of the whole of Sedgefield Borough.'