Formal Agreement With FRC

The Formal Agreement between the WHR Ltd and FRC complements the
Memorandum of Understanding and expresses the same points.
Based on agreements in certain letters exchanged between the Companies' solicitors,
the terms of the MoU are binding in law, as is the following formal agreement.

THIS AGREEMENT under seal is made the 12th day of January between:

(1) FRC: THE FESTINIOG RAILWAY COMPANY whose business office is at Harbour Station, Porthmadog, Gwynedd

(2) WHRL: WELSH HIGHLAND RAILWAY LIMITED whose registered office is at Gelerts Farm, Madoc Street West, Porthmadog, Gwynedd


1. FRC are a Statutory Railway Company and on 25th March 1997 made an application for an Order pursuant to the Transport and Works Act 1992 in respect of a railway line from Dinas to Porthmadog and known as The Welsh Highland Railway.

2. WHRL supports the said application and the rebuilding of the Welsh Highland Railway to the extent and on the terms set out herein.


1. Interpretation

A. The terms "FRC" and "WHRL" include their subsidiary companies and businesses and their successors in title.

B. "WHR Order" means the Welsh Highland Railway Order the application for which was lodged by FRC on 25th March 1997 with the variations made by FRC up to the date hereof.

C. "The Inquiry" is the Inquiry to be held by direction of the Department of the Environment Transport and the Regions (the Department) in respect of the application for the WHR Order.

D. "Track Construction" means clearing the site of the track bed including fences, drains, bridges and crossings and laying track all to the standards required by and the final approval of the Department and its successors in title and Her Majesty's Railway Inspectorate (HMRI) and includes complying with all planning and other conditions in the WHR Order or otherwise and the obligation to maintain and keep in repair the track to the same standard requirements and approvals.

E. "Porthmadog WHRL Station" means the Porthmadog WHRL Station.

F. "Rule against Perpetuities" - All future rights shall be commenced within 80 years of the date hereof.

2. Support by WHRL

WHRL supports completely the rebuilding of the Welsh Highland Railway by FRC and therefore the application by FRC for the WHR Order. WHRL will be represented at the Inquiry so to declare.

3. Support by FRC

FRC supports completely the construction and operation of the portion of the Railway from Pen-y-Mount to Pont Croesor as hereinafter set out retaining all ticket receipts until clause 6 applies.

4. Withdrawal of Representations and Objections

In consideration of the terms of this agreement WHRL withdraws all of its objections to WHR Order except its objections to the compulsory purchase powers on WHRL land.

5. Action after grant of WHR Order

A. FRC will proceed to enter on and acquire the land and other rights authorised by the WHR Order within three months of the granting of the Order.

B. FRC will proceed with Track Construction from Dinas to Waunfawr as soon as possible and after this work is completed WHRL will proceed with Track Construction of the Section from Pen-y-Mount to Pont Croesor as soon as practicable.

C. If WHRL so requests FRC may agree to let WHRL to carry out Track Construction from Pont Croesor for a further section or sections of the Welsh Highland Railway.

6. Action after Track Construction completed between Dinas and Pen-y-Mount

A. WHRL heritage trains would have guaranteed access over the whole route subject to HMRI approval on the following basis :-

i) Train crews are passed out by FRC for operation over the line.

ii) Paths for such trains are compatible with commercial requirements and any requirements imposed by outside bodies.

iii) Fares received from such trains will be paid to FRC but FRC in return will pay for the use of locomotives and rolling stock.

iv) FRC will also pay a proportion of the receipts to WHRL for use of the line between Porthmadog WHR Station and Pen-y-Mount by those trains.

v) WHRL retains in full the proceeds from all sales and income (other than fares) received at WHRL's shop and cafe at Porthmadog (WHRL) and catering/sales on these trains.

vi) The legal responsibility for operation of these trains over FRC tracks rests with the FRC.

B. FRC's trains can, if necessary, terminate at the Porthmadog WHRL's Station subject to payment of access charges to be agreed.

7. Use of Name "Welsh Highland Railway"

On completion of the line, the whole route will be known as Welsh Highland Railway. In the interim, the FRC's section will be Welsh Highland Railway (Caernarfon) and the WHRL's section will be Welsh Highland Railway (Porthmadog). It is acknowledged that publicity for the 1998 season is already underway but subsequent publicity from the date of this agreement will carry the new form of words.

8. A. Cross-town link

WHRL will support the cross-town link from Pen-y-Mount WHRL Station to Porthmadog Harbour FRC Station as described in the WHR Order and the plan to operate through FRC trains.

B. Grant Applications

WHRL will not compete with FRC for grant applications.

9. Resolution of Disputes

If there is any matter herein or arising out of the relationship of the parties which is in dispute or cannot be agreed then either party may refer the matter of dispute or non agreement to a mediator or failing agreement to the Chairman (or his authorised deputy) of the Association of Independent and Preserved Railways.

10. Heritage Facility

Following the date of this agreement, the FRC and WHRL heritage groups should be brought together to develop a "rails to Porthmadog" heritage facility at Gelert's Farm, Porthmadog.

11. Joint Committee

A joint steering committee shall be formally constituted on a regular basis as a means to better communication between the two Companies.

12. Support

By reason of the terms of this Agreement and to enable the Welsh Highland Railway to be rebuilt WHRL supports the application by FRC for the WHR Order.

[signatures omitted.]