Construction of the Shildon Railway Village is due to get underway in New Year, after the project secured final capital funding last month.

The £600,000 grant from the Regional Development Agency and OneNorth East's Single Programme as well as £500,000 from the European Regional Development Fund completes a funding package of more than £7m. Just under £5m was awarded by the Heritage Lottery Fund, with other funding received from Sedgefield Borough Council and the Department of Culture, Media and Sport (DCMS).

The Railway Village in Shildon, County Durham is the result of a partnership between the National Railway Museum and Sedgefield Borough Council. Incorporating the Timothy Hackworth Museum, the village will feature a 6,000sq m building capable of housing 60 vehicles from the National Railway Museum's reserve collection, a shop, education centre and conservation workshops. The attraction is due to open in 2004.