The Welsh Government has confirmed it is providing a multi-million pound contribution to a major upgrade of Cardiff Central railway station, despite the transport hub being a non-devolved asset owned by the UK Government.
A Funding Partnership for Wales's Busiest Station
The business case for the £140m revamp of Cardiff Train Station was recently approved by the UK Government's Department for Transport (DfT). The funding breakdown sees £77.8m coming from the DfT, £40m from the Cardiff Capital Region City Deal, and around £22m from the Welsh Government.
While the station is leased and operated by Transport for Wales, it is owned by Network Rail. The Welsh Government stated that without its financial commitment, the crucial project would not have been possible to proceed.
Inheriting a Private Sector Commitment
Cabinet Secretary for Transport, Ken Skates, explained that the Welsh Government's contribution was necessary to secure the larger sums from the UK Government and the Cardiff Capital Region. He also clarified that the commitment was originally made by the former private franchise holder, KeolisAmey.
"The funding commitment, originally made by KeolisAmey, was inherited following the Welsh Government’s move to bring rail services back into the public sector," Mr Skates said. During the pandemic, the Welsh Government took over the franchise via an operator of last resort mechanism.
Capacity Boost for a Growing Network
The station currently handles approximately 13 million passengers annually. However, with the £1bn electrification of the Core Valley Lines and the introduction of new tram-trains, passenger numbers are projected to surge to over 20 million within the next decade.
The upgrade will not add new platforms but will focus on passenger experience and flow. Key improvements include:
- A significantly larger concourse to increase capacity.
- Additional gate lines to improve access.
- A new southern entrance featuring a brick arch.
- An extension to platform zero.
The work is scheduled for completion in time for the opening game of the UEFA Euro 2028 tournament at the nearby Principality Stadium.
A Pattern of Funding Non-Devolved Assets
This is not the first time the Welsh Government has financed rail enhancements on non-devolved infrastructure. It previously spent £160m on upgrading the Ebbw Vale line, including a long-term loan, and bore the lion's share of the now £1.1bn cost to electrify the Core Valley Lines, which have since become a devolved asset.
The DfT defended the funding arrangement, stating that the Welsh Government and Cardiff Capital Region would directly benefit from the upgrade through increased demand for Transport for Wales services and wider economic growth. A DfT spokesperson said the project would "create a modern, accessible transport hub that improves journeys for passengers across the region."
The Welsh Government's contribution, drawn from its block grant, highlights ongoing tensions over rail devolution and the use of Welsh funds for infrastructure ultimately controlled by Westminster.
