PASSENGER services could be restored to a scenic North-East railway early next year after the way was cleared yesterday for a small private company to take over a disused rural branch line.

Durham County Council removed one of the obstacles blocking the reopening of the historic Weardale Railway, by agreeing to be responsible for seven bridges crossing the track, between Stanhope and Bishop Auckland.

This will clear the way for the Weardale Railway Company to finalise a £100,000 deal to buy the line from Railtrack.

It also allows the council to withdraw objections to the company's application for recognition as an authorised rail operator.

The company's deputy chairman, Don Heath, said the decision by the council's executive committee marked a major milestone for the project.

He hopes now to have the order by Easter, allowing restoration work to start on the track, which was last used by passenger services in 1953.

Mr Heath predicted that the earliest people can expect trains to run will be spring 2002