US takeover for troubled railway

The new owner says it supports values of community rail

An American company has taken over a troubled steam railway in County Durham.

Iowa Pacific Holdings, which operates 700 miles of track in the USA, has taken a 75% stake in Weardale Railway.

It follows negotiations with previous owners the ECT Group over the historic line which runs between Bishop Auckland and Eastgate.

Weardale Railway, run by volunteers, has continued to struggle since coming out of bankruptcy two years ago.

Only five miles out of 18 have so far been re-opened.

Anna Whitty, chief executive of ECT Group, said: "ECT is delighted to have found a new home for its rail businesses, with an organisation that supports the values of community rail.

"It has the skills and resources to provide them with a sustainable future."

The company has also acquired the Dartmoor Railway as part of the deal.