Rail research firm goes into administration

A not-for-profit organisation which has been involved in a Very Light Rail (VLR) system for Coventry has gone into administration.

Dudley-based Black Country Innovative Manufacturing Organisation (BCIMO) runs what it describes as a "unique world-class centre for rail innovation."

The £32m VLR centre was built with money from a range of sources, including regional enterprise partnerships and Coventry City Council and Dudley Borough Council.

A lack of anticipated funding and rising costs had led to cash flow challenges for BCIMO, administrators RSM UK said.

The VLR centre remained open and continued to trade during the administration period, they added, but there had been a "small number" of redundancies.

Options to sell the business and assets were being "rapidly explored," with a view to keeping the centre going and rescuing the BCIMO brand, said RSM UK.

"BCIMO has been responsible for the important work undertaken at the VLR centre over the last few years," stated joint administrator Deviesh Raikundalia.

Interested parties were encouraged to come forward in the "coming days."

BCIMO came into being in 2019, ahead of the centre being completed by Dudley Council in 2022.

VLR is like a tram, but involves single, battery-powered cars that can each transport about 50 people, and do not need deep tracks to run on.

In Coventry the city council is working on a new system using special weight bearing concrete slabs and vehicles specially designed for tight corners.

It has been developed in partnership with BCIMO and WMG at the University of Warwick.

Coventry City Council said it was disappointed to hear that BCIMO was in administration, but it would not have any impact on Coventry Very Light Rail.

"It is absolutely business as usual for us," said cabinet member Jim O'Boyle.

"Following the really successful on road trial in the city centre, the vehicle is now in Alcester for the next stage of development," said the councillor.

While the vehicle is worked on, an 800-metre section of track is set to be laid from the railway station to the University Technology Park, to show how it can run in live traffic.

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