The UK and Welsh governments have jointly unveiled a landmark plan to modernise rail across Wales – 43 projects costing up to £14 billion, aimed at transforming connectivity after years of underinvestment. This long-term programme provides a stable pipeline for rail improvements over the coming decades and is expected to support thousands of jobs across the country.
Key elements include seven new stations – five serving the Cardiff–Newport corridor and two major new hubs (the flagship Cardiff Parkway in east Cardiff, and a station for Deeside Industrial Park in North Wales). Alongside the new stations are significant infrastructure enhancements such as track capacity upgrades, higher line speeds on key routes, and station modernisation (including a major rebuild of Cardiff Central). Together, these upgrades will boost capacity and make rail a more attractive choice for travel.
For the rail industry, this is a generational commitment after years of stop-start investment, providing a stable pipeline of work and long-term visibility of projects over the next decade and beyond. An initial £445 million from the latest UK Spending Review has been committed to kick-start priority schemes from 2026. This construction surge is expected to create around 6,000 jobs, and running the expanded services will add over 1,000 new long-term roles. Rail usage is set to rise sharply as projects come on stream, taking pressure off roads and supporting sustainable growth.
Prime Minister, Keir Starmer, said: “For too long, Wales has been let down by a UK government unwilling to do the hard yards and build the future they deserve.
“This government is turning the page on historic dither and delay with seven new stations, thousands of jobs, and a generational commitment to build a rail network fit for Wales’ future.
“This isn’t tinkering nor sticking plasters. This is investment for the long term – and change communities will feel. This is putting Wales on the front foot and getting Britain building again.”
First Minister, Eluned Morgan, said:
“We are now in an unprecedented position to deliver the next chapter of transformation for rail services in Wales. We have secured long-term commitments to key projects and a renewed ambition for our rail network.
“Changes of this scale don’t happen overnight but they do happen when there is vision, determination, and cooperation. We’ve already proved that with the Core Valley Lines, and we are beginning to see the same momentum with Network North Wales. When you have the ambition, the commitment and the will, real progress follows – and we have all three.
“Today marks another important milestone for rail as Transport for Wales publishes an exciting and essential pipeline for future investment. This includes projects the length and breadth of our nation. We warmly welcome the UK Government’s support for these plans and for their commitment to putting right the injustice of Welsh rail underfunding left by the previous government.
“In the near term, I’m pleased to see backing for the essential work at Padeswood and Buckley. This will transform journeys between Wrexham and Liverpool, unlock economic opportunities across north Wales, and allow plans for the new Deeside station to accelerate. I also welcome the UK Government’s support for Cardiff Parkway, and we remain committed to working closely with all partners to complete the full business case and development plans.”
Secretary of State for Wales Jo Stevens said:
“After years of underinvestment in Welsh infrastructure, this UK Government is modernising and upgrading Welsh rail.
“This investment in seven new stations and other upgrades will boost capacity across our network and transform the experience of thousands of passengers.
“It is part of the generational investment we are making to improve Welsh rail which will better connect people with the well-paid jobs we are creating across the country and drive economic growth.”
Transport Secretary, Heidi Alexander, said:
“Railways in Wales have been left behind for too long, and passengers deserve better. They are long overdue faster, more reliable, better rail connections to jobs and opportunities, and infrastructure that supports communities and growth.
“Today’s announcements will help deliver exactly that, with new stations up and down Wales, from Cardiff to Deeside.”
Vernon Everitt, Chair of Transport for Wales, said:
“Transport is an enabler of sustainable economic growth, higher productivity, access to homes, jobs and education as well as greater opportunity for all. Supporting the Welsh Government’s vision for transport and working with the UK Government, Today, Tomorrow, Together sets out an ambitious agenda to make further progress in these areas through investment in rail services as part of an integrated transport plan.
“In recent years we have delivered major improvements in transport for the people, businesses and communities we serve. This includes new trains and services, the wholesale transformation of the Core Valley lines and now significant enhancements to rail services as part of Network North Wales. We are also working hard to invest the funding allocated to Wales under the last spending review to bring further improvements to communities as quickly as possible.
“We now need to go further. Today we set out a potential pipeline of future projects which will bring further benefits across the whole of Wales, and I am thrilled that today the UK and Welsh Governments have backed this vision wholeheartedly.”
Opportunities Across the Supply Chain
This ambitious programme opens diverse opportunities for rail-sector businesses of all sizes. Key areas include:
- Tier 1 Contractors: Major firms will bid for high-value contracts to build new stations, lay additional track, and modernise key hubs like Cardiff Central – a multi-year pipeline of work for prime contractors.
- Civil Engineering Specialists: The programme entails extensive civil works – bridges, earthworks, track realignments, station structures, signaling upgrades – requiring companies with strong rail engineering expertise to deliver complex construction.
- SMEs and Local Suppliers: Smaller contractors can secure subcontracts and niche roles, from providing specialist equipment to performing on-site works (e.g. electrical fit-outs or groundwork). Welsh SMEs that meet the standards are well placed to benefit.
- Rolling Stock Providers: Service expansion may necessitate additional or upgraded trains. Manufacturers and leasing firms should watch for new fleet needs – for example, if routes like Wrexham–Liverpool or South Wales lines add frequency.
- Consultancies and Designers: Specialist consultancies will be needed for planning, design and project management support – from feasibility studies and environmental assessments to detailed engineering designs for the dozens of schemes.
- Service Operators: Transport for Wales Rail (and cross-border operators) must scale up to run the enhanced network, creating demand for more staff, training, maintenance capacity and other support services as new routes and timetables roll out.
Early Flagship Projects: Cardiff Parkway and the Burns Stations
Among the first projects to be delivered are Cardiff Parkway and the suite of new “Burns” stations in South East Wales. These early schemes will set the tone for the wider programme and will be among the first to go to market.
Cardiff Parkway is a flagship new station on Cardiff’s eastern outskirts. Backed by government and private investment, it is expected to serve up to 800,000 passengers annually and unlock thousands of jobs in the area. With planning consents secured, the project is moving toward procurement.
Meanwhile, the Burns station programme will deliver five local stations at Magor & Undy, Llanwern, Somerton, Newport West and Cardiff East between Cardiff and Newport. With an initial £90 million allocated, work is set to begin in 2026, and Magor & Undy is expected to open first by the late 2020s, with the others following in succession. This cluster of station contracts will come to market in parallel, giving contractors a chance to secure early work; quick wins here will help maintain momentum behind the entire investment plan.
How Suppliers Can Prepare
Suppliers should begin positioning themselves now to take part in this programme. Key steps include:
- Engage early in industry forums: Join upcoming supplier days and consultations hosted by clients like Transport for Wales. Early engagement will provide insight into requirements and forthcoming tenders.
- Align with sustainability and social value: Emphasise how your offerings support Welsh Government goals on decarbonisation and community benefits. Demonstrating local job creation, apprenticeships, and low-carbon construction will strengthen your bids.
- Invest in local capacity: Establish or expand a presence in Wales. Partnering with Welsh firms or hiring locally can boost your credibility and ensure you have the resources on the ground for project delivery.
- Build relationships: Network with TfW, local authorities and industry partners working in the Wales region. Understanding the client’s priorities and forming partnerships will improve your chances of securing contracts.
Documents to familiarise yourself with
The Wales Rail Board has developed its long-term vision for rail enhancement investment in Wales. TfW has published this vision as part of its document titled ‘Today, Tomorrow, Together: A Vision for Wales across Wales and Borders’
