A bid of £13.9 million has been lodged to kick-start plans for a light rail service taking train passengers into Dudley for the first time in 50 years.

The railcar service, which would run from Dudley Port station (near Tipton) to the former station at the bottom of Castle Hill, is expected to cost around £27.8 million, and an application for half of the cash has been submitted to the European Regional Development Fund (ERDF).

Some of the money needed has already been secured, with the rest expected to come from private investment.

The scheme has been unveiled following a deal struck between Dudley Council and Warwick Manufacturing Group, which wants to use it as a pilot scheme for the next generation of railcars.

The group will open a multi-storey National Centre For Development of Very Light Rail Technology at the new station, which will employ around 45 people to oversee the trial service and develop the technology. It is hoped that the passenger service could open within the next five years.

Councillor Khurshid Ahmed, cabinet member for regeneration, said: “We have now made a bid for £13.9 million of funding through the European Regional Development Fund to cover half of the estimated £27.8 million it will cost to make the Very Light Rail centre a reality.

“If successful, this money will supplement the £4.5 million already offered through the Local Growth Fund, leaving us with £9.4 million to find from third-party private-sector investors.

“The ERDF aspect of the scheme would support the creation of an innovation centre for this new technology while the wider scheme will bring Dudley back onto the national rail network by connecting the town once again to Dudley Port.”