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The service, modelled on the French TGV network, will ferry passengers between the cities at up to 220mph and is expected to run every 15 minutes.
Jack McConnell, the first minister, and Tavish Scott, the transport minister, have approved the high-speed electrified link that will form the centrepiece of the Scottish executive’s transport strategy.
Ministers want to cut the current 50-minute journey time between Scotland’s largest cities. They believe the project, which is expected to cost more than £1.5 billion, will ease traffic congestion on the M8 and boost the economies of both cities.
Scottish executive officials are studying a number of routes for the service, the most likely of which is the line through West Lothian and central Lanarkshire, passing through Cambuslang, Bellshill, Shotts, West Calder and South Livingston.
Another possibility is to extend the route currently being built between Airdrie and Bathgate.
“The key thing Tavish wants to tackle is to be pro-business and pro-environment at the same time,” said an executive source.
“We need a high-speed rail link between Edinburgh and Glasgow, not just to persuade more people to use public transport but also because there is a strong economic case for bringing what are two medium-sized cities in European terms closer together without building more motorways. Making connections so much faster, so that taking a train is not a nightmare, would make it easier to do business in the two cities and combine their economic muscle. It would effectively turn the central belt of Scotland into an area with really considerable economic clout.
“It is something we will make a priority over the next couple of years. There will have to be a strong business case made but unless we are ambitious now then in 10 years’ time we will still be where we are now.”
News of the executive’s plans were welcomed last night by passenger groups, business leaders and environmental campaigners.
“This could radically change the lives of thousands of commuters in Scotland,” said a spokesman for the rail watchdog Passenger Focus. “Anything that gives passengers more choice is very welcome, but they should be consulted about what fares they are willing to pay. Passengers already pay a high price to travel on the train. It is only right that they have the service to match.”
Iain McMillan, director of CBI Scotland, added: “We would certainly welcome a shorter journey time between Glasgow and Edinburgh. Improving transport infrastructure is a key part of driving the country’s economy. Rather than building a new line, the best solution, we believe, would be to develop the existing line from Glasgow Queen Street to Waverley, which bypasses Edinburgh Airport.
“A high speed rail link will almost certainly take pressure off the M8, which is, quite frankly, like a Third World road these days.”
Duncan McLarens, the chief executive of Friends of the Earth Scotland, said: “Any moves that would seriously reduce the journey times of trains between Glasgow and Edinburgh would be welcomed.
“This rail project is just one of many that should probably have been given greater priority than a few others we have seen given the go-ahead recently.
“But if climate change is to be tackled then whatever the executive brings forward by way of public transport improvements must not be undone by further backing for new traffic-generating road schemes.”
However the project is likely to disappoint some in the rail industry who have called for an even faster service between the two cities. Moir Lockhead, the chief executive of FirstGroup, recently suggested a 300mph magnetic levitation, or maglev, train that could cut the journey time to 12 minutes.
A cross border service to encourage travellers to take the train instead of short-haul flights, which are four times as popular for journeys to London, is also supported by the executive to reduce levels of pollution.
However, the prospect of a two-and-a-half-hour rail link from Scotland to London appears to be receding. Sir Rod Eddington, the former British Airways chief commissioned by the UK government to examine options for modernising the transport network described it last week as low priority. Executive ministers plan to hold early talks on the issue with their UK counterparts.
The executive is also expected to confirm this week that it is prepared to support road charges of up to £1.20 a mile on a UK-wide basis to reduce congestion, once technology allows.
In return it wants the Treasury to to cut road tax or fuel duty to offset the costs of the charging scheme, particularly for rural motorists.
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