A new £100 million train depot is to be created in Taffs Well, Cardiff.
The Welsh Government investment will establish a new Transport for Wales depot to house and service 36 of the new Metro vehicles operating on the Taff Vale lines.
In addition, the facility will house 400 train crew, 35 Metro vehicle maintenance staff and a South Wales Metro integrated control centre employing 52 staff.
The scheme is being carried out as part of an overall £194m investment in Wales' railway stations, with the station at Taffs Well being modernised as well as a park and ride facility being developed to improve commuter access to the South Wales Metro.
Clearance and construction work for the new depot is expected to start in 2019 and completion is scheduled for mid-2022.
Announcing the project, Economy Secretary Ken Skates said: "Public investment with a social purpose is right at the heart of our new approach to rail and in line with our Economic Action Plan, and we are determined to ensure that our £5bn investment in rail services maximises opportunities for Welsh business, stimulates the Welsh economy and develops the local skills base, creating and supporting as many local jobs as possible.
"The construction of the Taff's Well depot presents one of the first opportunities for Welsh suppliers to directly benefit from our £738m investment in the South Wales Metro which will see us creating a sustainable and connected transport infrastructure. I am genuinely excited about the benefits of this public sector investment making a real and tangible difference to Welsh businesses and communities."
The new depot at Taffs Well will complement existing South Wales depots including the one in Canton, which will benefit from around a £5m investment to modernise maintenance facilities so it can support the new tri-mode rolling stock being introduced as part of the new rail service. Further investment will be made in enhanced stabling facilities in Treherbert and Rhymney, along with an upgrade of the station at Rhymney to accommodate more and longer tri-mode rolling stock.
(LM)
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