THE region’s main rail link could face a “capacity crunch” without investment in a new high speed train line.

Susan Goldsmith, deputy managing director of National Express East Coast, warned last night that such a development was fast becoming an economic necessity.

Ms Goldsmith was addressing business leaders at the annual meeting of the North-East Economic Forum, held in Newcastle.

Next week National Express marks a year in charge of the East Coast Mainline after it took over the reins from the now defunct GNER.

Ms Goldsmith said space was running out on the congested line which links the North-East and Yorkshire with London and Scotland.

She said: “While the world economic situation is dominated by the credit crunch, our rail industry also faces a capacity crunch.

“And, at best, capacity on the East Coast Main Line will be completely constrained by 2020.”

While National Express was proposing “innovative solutions” to these difficulties, such as a new timetable from December next year and boosting the number of seats by ten per cent on receipt of new rolling stock from 2013, there was only limited scope to squeeze more out of the line.

Ms Goldsmith, who stated that customer satisfaction and punctuality on East Coast had improved in the past year, said: “We believe the answer to this capacity crunch lies in the development of a new high-speed rail line, which is fast becoming an economic necessity.

“Because high speed rail is, first and foremost, about capacity. It is about meeting rising passenger demand.”

She said that faster journey times – potentially up to 220mph – could mean travel between Newcastle and Edinburgh could be cut to 45 minutes and between Newcastle and London to just 90 minutes.

Many major European cities could also be reached within five hours by linking a high speed rail line with high speed services from London St Pancras, direct to the continent.

Ms Goldsmith welcomed recent remarks by Transport Secretary Geoff Hoon – who said there was a “very strong case” for a new high speed link running through the region – and said that it could not afford to miss out.

Currently a team led by Rail Minister Lord Adonis, and including Network Rail, is examining the case for a new high speed link.

She pledged to support leaders and decision-makers in developing a “compelling business case” for high speed in the North-East, which she said could bring major economic, environmental and social benefits.