Flying Scotsman still on track for Edinburgh

Published on Sunday 14 December 2003 00:00

FLYING Scotsman, the company which owns the world-famous locomotive of the same name, is close to signing a deal to permanently house the steam engine in Edinburgh.

In October, Scotland on Sunday revealed that the Flying Scotsman might be sold abroad to the US or Japan after Railtrack and its successor Network Rail repeatedly refused to sign off on a plan to house the locomotive at a ‘steam village’ at Waverley station.

But it has emerged that Flying Scotsman plc is close to agreeing a deal with Edinburgh City Council to build a smaller visitors centre adjacent to Waverley on Market Street that does not encroach on land owned by Network Rail.

Flying Scotsman chief executive Peter Butler said: "It won’t be as good as it should have been but Network Rail shows no signs of delivering on what they said they would do."

Butler said the requirement to build the visitors centre telling the history of steam within the boundaries of the council land would limit its size to 15,000 sq ft, instead of the 25,000 sq ft originally envisaged.

However the revised scheme might still not go ahead. The developer lined up to build the centre will charge Flying Scotsman plc more rent because the company would be the sole tenant on the land.

The original scheme involving Railtrack would have allowed the developer to redeploy some of the land to other tenants, effectively subsidising Flying Scotsman’s involvement.

A final decision over the cost of the revised scheme will be taken by Flying Scotsman’s board this week once all the development estimates have been delivered to the company.

Sources close to Flying Scotsman plc warned that if rent under the revised plan was deemed too expensive, the company might have no choice but to sell its assets - including the locomotive - to meet its liabilities.

Butler said: "We are working extremely hard to be there in the absence of Network Rail’s ability to deliver. We will need to raise more money, but it might be possible."

Analysts estimate the company might need to tap investors for a sum approaching 1m if its plan to build a visitor centre in Edinburgh is to be realised.

Flying Scotsman plc is deep in a financial mire after delays in the visitor centre led to a shortfall in revenue.

Last month the company had its shares suspended from the ‘junior’ Ofex market for small companies. In October it announced a loss of 475,000 for 2002.

The Flying Scotsman hit the headlines in 1934 when it became the first steam locomotive to authentically achieve a speed of 100mph.

Eventually the much-loved engine was withdrawn from service by British Railways in 1963 after a hard 40-year working life in front line service and was sold for preservation.