VOLUNTEER railway enthusiasts have reached a landmark agreement to pave the way to reopen a 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 track 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 suit.

And 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, although they were looking at using semi-light rail vehicles in the future.

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 largely funded through a share issue, launched last November, which has so far raised £650,000 with an eventual target of £2.5m for the first phase.

But 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 reaching Garsdale and linking into the Settle-Carlisle route.

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

*Details of the share offer are available from www.wensleydalerailway.com or 0500