VOLUNTEER railway enthusiasts have reached a landmark agreement to pave the way to reopen a branch line to passengers for the first time in nearly 50 years.

Wensleydale Railway plc has completed negotiations with Railtrack to take over the 22-mile stretch of line between Northallerton and Redmire, in North Yorkshire.

The deal is the first time a company other than Railtrack has been given responsibility for part of the national rail network and could pave the way for other groups to follow.

It is a key stage in Wensleydale Railway's long-held plan to bring the line back into use, with the first passenger services expected to start next Easter.

Chief executive Scott Handley said negotiations with Railtrack had taken several years but had now come to fruition.

He said: "It has been delayed by difficulties in the rail industry, but we have now completed the negotiations and we hope we will sign a 99-year lease within the next few weeks.

"It is a big step for us and it would be the first company other than Railtrack to run part of the national rail network."

He said they aimed to run a limited service from Leeming Bar to Leyburn starting next Easter, initially using diesel locomotives.

A Railtrack spokeswoman said: "We have had full discussions and we hope we're very close to finalising details.

"We believe it is a unique arrangement and it is something we hope will provide a template for similar schemes across the network."

Development of the line will be funded largely through a share issue, launched last November, which has raised £650,000 with a target of £2.5m for the first phase.

Mr Handley said there had been indications from the Strategic Rail Authority that subsidies may be available to support services.

Cash will go towards upgrading stations at Leeming Bar, Leyburn and Aysgarth, with some smaller stops created along the route.

A second phase will include extending the line further into Wensleydale, eventually linking into the Settle to Carlisle route at Garsdale, Cumbria.

Mr Handley said: "It looks as though all the hard work on this project is finally going to pay off."