Insider Media Limited

Network Rail's plans to invest £3m in a new depot in Derby have been welcomed as a boost for the city and "the rail industry as a whole". Michelle Craven, vice chair of Derby and Derbyshire Rail Forum, told Insider the 70-acre development – which is set to create 400 jobs – would help soothe Derby's bruises caused by Bombardier's major contract loss.

The Network Rail building will be used as a base for technical staff charged with maintaining tracks, signalling and power systems in the East Midlands.

It will also be used for storing the supplies and equipment needed to maintain the tracks.

The brownfield land, known as Chaddesden Triangle, is owned by Network Rail. Craven said it had been identified as a "regeneration priority" by Derby City Council and the rail company.

"Network Rail has already announced that it will be looking for partners to work with it to develop the site," she said. "The hope with this, of course, being that not only with local workers be employed at the new depot but local contractors will be able to benefit from the major development work and the local economy will inevitably receive a boost from that."

The rail giant said it would now sell off any surplus land and use the Derby site as its regional headquarters.

Network Rail said that any profits made from the site would be re-invested in future rail projects.

Craven said: "By opening its regional headquarters in Derby it yet again shows that Derby is regarded as the major hub for rail in the country at a time when the industry, especially here in Derby, is feeling somewhat bruised by recent events."

It is the second major development announced for Derby within the last few weeks.

The £50m regeneration of Friars Gate was given the go-ahead by Derby City Council last month (25 October). Proposals for the scheme – which is estimated to bring in about 780 jobs to Derby - include the creation of a supermarket and ground-floor shopping mall; a petrol station; restaurants; 150 new houses and 700 car parking paces.

A further 23,960 sq ft of retail space could also be made available along with a heritage centre.