A new study has found that a commuter rail service linking Limerick, Shannon and Ennis could be commercially viable, provided it received Government funding for the first five years of operation.
A rail link to Shannon has been backed by the employers' group, IBEC, which says rail freight access to the airport would give industry in the region a much needed competitive advantage.
The study was carried out by Shannon Railway Company, a consortium of investors involved in constructing the €150m Skycourt development in Shannon town. The estimated cost of the new rail link is €60.5m.
The Shannon Railway Company is advancing the project as a public private partnership, and says it is prepared to invest €37m.
However, it says the Government would need to invest an average of €4m each year for the first five years. It believes there would be a return on the investment after that period, with no need for further Government monies.
The study found there is a potential demand for 2.3m passengers per year, based on the existing car travel on these routes.
The link would use the existing Limerick-Ennis line with the construction of a new six-mile spur into Shannon town and airport.
IBEC says rail freight access to the airport would give industry in the region a considerable competitive advantage in attracting new investment to replace the 2,500 jobs lost in the manufacturing, engineering and IT sectors in the region last year.
