The funding is needed for re-signalling of the Wareham to Swanage branch line at Worgret Junction.
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Many branch lines use diesel engines and the Harlem-Hudson line uses a third rail system to draw power.
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The 17-mile (26km) route will follow an old Great Western Railway branch line through a tunnel at Grenofen built by Isambard Kingdom Brunel.
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The Waterbury rail line is the smallest branch on the railroad, with a locomotive and two-car train that serves several hundred commuters a day, Anders said.
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