The £7.8m project will be funded by £4.67m from the European Union’s Convergence investment pot, £2.5m provided by Cornwall County Council and Network Rail contributing £600,000.

Detailed design work on the enhanced rail service has already begun and work is expected to start on site by the last quarter of this year with a new timetable commencing in May 2009.

EU Convergence investment will allow the project to form a key part of the overall transport strategy identified for the Truro area in order to achieve its wider economic, social and environmental objectives to 2016 and beyond.

The project, one of a number across Cornwall to be delivered throughout the lifetime of the Convergence programme, will provide a passing loop adjacent to Penryn station to allow two way movement of trains, increase the current level of service to a regular two per hour service during the working day, and increase patronage to provide a commercially self sustaining service. This will be supported by a new bus based park and ride service which will open this summer on the A390 at Langarth Park, Threemilestone.

Cornwall County Council executive member for strategic planning and transport Matt McTaggart said: “This is a great scheme that by increasing the capacity for rail passengers will remove car users from the congested road between Truro and Falmouth and reduce environmental pollution.”

The council’s executive member for the economy Andrew Mitchell added: “As a ‘Community Rail’ designated link, the Truro to Falmouth rail improvement scheme presents an opportunity to demonstrate sustainable transport which can support economic development initiatives, improve access to key services and ensure that environmental objectives are met in addition to wider social and economic aims.”

Diana Mompoloki, head of convergence for the South West of England Regional Development Agency – which is the managing agent for the ERDF Convergence Programme in Cornwall and the Isles of Scilly, said: “This is the first investment to be approved under Convergence and evidence that the programme is already starting to deliver for Cornwall. This improved rail link will have a significant economic impact, helping to boost productivity by reducing travel times, reinforcing the links to the Combined Universities in Cornwall and helping to underpin environmentally sustainable growth in Truro, Penryn and Falmouth.”

In 1997 156,000 journeys were made on the Falmouth to Truro Maritime line. Ten years later passenger numbers had increased 67.3% to 261,000.