In the hopes of attracting a new private sector operator Highlands and Islands Enterprise (HIE) has announced that it will be investing in the region of £4 million in the Cairngorms funicular railway. The money will be spent over the next few years on improvements which should bring the railway up to the standard which HIE expects will encourage bids form private operators.

HIE is a public agency and has already given £19.42 million to the building and maintenance of the railway which it took over last year. HIE also took over the Cairngorm ski resort after an agreement was reached over debts owed by CairnGorm Mountain Limited with Bank of Scotland and CairnGorm Mountain Trust. Highland Council has also found itself having to write off a loan of £1 million to CairnGorm Mountain Limited.

The Cairngorms funicular railway was first opened in 2001. Last year HIE say that 400,000 visitors used the car park where the funicular runs from and that around half of those visitors used the railway. HIE says that it is looking at the idea of charging customers to use the car park.

£26 million has been spent on the railway so far and members of the Scottish parliament are looking into how HIE have been using that money. An audit committee from the Scottish parliament has started to put together information on the spending following an independent investigation into funicular finances by Audit Scotland.

It is expected that as soon as the new wave of investment has been completed the railway will be put out to tender.