HOPES for a new North-South high-speed rail link which could reduce travel times between the North-East, London and Scotland are to receive a boost.

A study by Rod Eddington, the former chief executive of British Airways into Britain's transport infrastructure, due out soon, is thought to recommend a new high-speed line, possibly powered by magnetic levitating Maglev trains.

Meanwhile, a new non-profit organisation is understood to be waiting in the wings to take up such plans and has received the backing of, among others, former Virgin Rail boss Chris Green, now a non-executive director at Network Rail.

Government ministers have already looked at the merits of the Transrapid system, which uses Maglev trains and has proved a success in China.

The trains, which run at speeds of more than 300mph, would cut journey times, with, for example, Newcastle to London taking little over an hour-and-a-half.

Dr Alan James, of UK Ultraspeed, which hopes to introduce the technology to the UK, said last year that a high-speed rail system linking the likes of Newcastle and Middlesbrough with London and Scotland could be operational by 2012 to coincide with the Olympics.

It would also make any perceived North-South divide a "thing of the past", he said.

However, concerns have been expressed about how much a high-speed link would cost - with estimates ranging between £16bn and £30bn upwards - and how it would be paid for.

Rail expert Christian Wolmar, who writes on industry issues, said: "The sponsors of this idea hope that it will be built, at least in part, with private sector money, but there is no record of the private sector being able to carry out such projects profitably."

He added: "Railway infrastructure does not pay for itself, and if supporters think that Gordon Brown is keen on spending huge amounts on such a scheme, whether he is Chancellor or Prime Minister at the time, they can dream on."

Two years ago, the Strategic Railway Authority, previously responsible for Britain's railways, shelved indefinitely plans for a high-speed North-South link saying it wanted to focus on the "here and now" of rail infrastructure.

But such a project has remained firmly on the agenda with Tony Blair, including a high-speed North-South transport link in Labour's last election manifesto.

Business groups in the North-East also continue to campaign heavily for a link because of the huge economic benefits it could bring.

A report by the Institute of Civil Engineers, published before Christmas, also backed a link ahead of expanding the motorway network or increasing the number of airport runways.

Meanwhile, East Coast Main Line operator GNER said it had submitted a "strong response" to the regulator in the light of a provisional ruling rejecting its application for additional Leeds-London services.

A spokesman said: "The impact of the decision is inconsistent with the ORR's (Office of Rail Regulation) stated objectives and raises a number of important legal issues.

"GNER has undertaken further detailed work to provide evidence that sufficient capacity does exist for the extra planned services.

"The company is urging the ORR to reconsider and reverse its earlier proposed decision in the light of this new information."