The Very Light Rail project in the UK is under threat after its managing body, BCIMO, entered external administration due to a lack of core funding. This is reported by the railway transport news portal Railway Supply.

The non-profit Black Country Innovation and Manufacturing Organization oversees the National Innovation Centre (NIC), where the Very Light Rail project has been under development since 2016.

Very Light Rail Project in the UK Faces Uncertain Future
Photo: Coventry City Council

Very Light Rail Prospects Remain Strong in Coventry

This transport system uses battery-powered, low-floor vehicles for 56 passengers, including 20 seats, and lightweight tracks that avoid costly utility relocation.

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In April, NIC presented the first demo vehicle for Coventry. Test runs on a 200-meter track section were scheduled for May.

The city initially planned to launch full operations by 2026, but timelines may now shift. Still, Coventry authorities confirmed plans to build an 800-meter VLR test line next year.

Financial Setbacks Threaten the Very Light Rail Rollout

BCIMO’s assets include a 2.2 km test track, rolling stock maintenance facilities, and the National Innovation Centre itself — all essential to the project’s technical foundation.

Former NIC marketing head Olivia Brown explained that the organization failed to secure the foundational funding set out in its original business case.

She added that this lack of guaranteed support ultimately triggered the current crisis.

Nevertheless, interest in the project remains high, as it promises to reduce transit costs and speed up infrastructure deployment in urban areas.

If completed, the project could serve as a model for other UK cities and strengthen Coventry’s position as a leader in transport innovation.

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