A proposed rail-link between Co Donegal and Co Londonderry could attract up to 750,000 customers per year.

A new study has revealed that such a line could indeed be viable with a track from Sligo, to Donegal town, through Letterkenny and on to Derry in Northern Ireland forming part of a project that could generate revenues exceeding €10m.

However, in March, an earlier report said that €640m would be needed to connect Derry with Sligo.

The report by national sustainable transport campaigner and researcher, Brian Guckian, found that €160 million per annum over four years would build the Republic's side of the track, although it did say that it would also generate "very significant direct and indirect employment" for the region.

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The report details that the investment would come from a review of capital investment priorities in the Dublin Government's 'Transport 21' programme and from a re-designation of the current 'Atlantic Road Corridor' as a 'Sustainable Transport Corridor'.

Local procurement of permanent way materials and the establishment of a concrete sleeper manufacturing plant in the region to service the works would be substantial and the provision of a modern, sustainable passenger and freight transport for the NorthWest would also have extremely high scenic amenity, with "significant tourism benefits".

Now, a feasibility study, undertaken by the local councils in the North West region, has found that as many as 750,000 would use the line annually if it were to be constructed.

The new findings were based on an analysis of traffic counts in the Sligo - Derry corridor and on tourism patterns in the region.

It also found that the inclusion of a rail link to Strabane, Co Tyrone, could bring revenue figures up to over €16 milllion per year.

NI Assembly Transport Minister, Conor Murphy, is on record as supporting such a cross-border project.

See: NI Minister Gets Rail On Link To Donegal