Docklands railway to get £150m extension

A multi-million pound extension of the Docklands Light Railway under the Thames was today given the go-ahead by the Government.

The £150 million project, which will extend the railway by 2.5km from North Woolwich to Woolwich Arsenal, is expected to transform the deprived area by attracting new investment and putting thousands of jobs within reach.

Trains could run every four minutes at peak times, making the City a five-minute journey and cutting travel times to the West End to just half an hour.

Transport Minister Tony McNulty said today: "It is clear why this scheme is strongly supported. It would bring thousands of jobs within easy travel time of an area of south London which suffers from relatively high unemployment. It would also act as a catalyst for economic and social regeneration on both sides of the river, with new jobs, new homes, shops and leisure facilities."

The project would create development opportunities, help improve business confidence, attract inward investment and bring 56,000 additional jobs within 40 minutes of Woolwich town centre, said the Government. More than 27 hectares of potential redevelopment land lie within the catchment area of the terminus, Woolwich Arsenal.

The benefits of the extension - a continuation of the line already being built from Canning Town to London City Airport - would be felt over a wide area south of the river, including Thamesmead and Plumstead, and also underpin continued regeneration of the Royal Docks on the north bank.

Tunnels will be bored under the Thames, extending the line from the planned King George V station in North Woolwich, just east of City Airport.

The earliest the project could be completed is 2008, but finance still has to be secured.

It is expected to be funded in the same way as the Lewisham extension, using the Private Finance Initiative.

DLR Ltd will select a " concessionaire" to design, build and maintain the scheme on its behalf, something which could not happen before this autumn. Once the link is open DLR Ltd would repay the investment, largely through fare revenue.

Today's decision by Transport Secretary Alistair Darling follows a public inquiry which strongly recommended the proposal be given the green light. An extension has considerable popular support.

The scheme is backed by the boroughs of Greenwich and Newham, London Mayor Ken Livingstone and regeneration agencies such as the Thames Gateway London Partnership.

Woolwich does not currently have a direct rail link to central London, but is served by Silverlink on the North London Line. Silvertown and North Woolwich only have two trains an hour in each direction.

Estimated journey times for the new line would be 26 minutes between Woolwich Arsenal and Bank and 18 minutes to Canary Wharf.