SWANAGE steam railway volunteers have received a welcome £75,000 boost from the Department for Transport.

The government grant will pay for mainline safety and communications equipment, which will be installed on Southern Railway 'N' class 'Mogul' steam locomotive.

It will also pay for five carriages to be upgraded to mainline standards.

Members of the Swanage Railway Trust's Moguls group are halfway through a four-year £500,000 project to overhaul the 1925-built locomotive to mainline standards.

Swanage Railway Trust chairman Gavin Johns said: "It's hoped that the return of steam trains between Swanage and Wareham – which is subject to track access agreements with Network Rail – will increase tourism and boost the Isle of Purbeck economy in a sustainable way."

Withdrawn for scrap by British Railways in 1964, it is hoped that No. 31874 will haul its first passenger train since 1998 during late 2016 or early 2017 – and be ready for mainline running to Wareham in late 2017 or early 2018.

Members Moguls group won the prize money after pitching their proposal to judges in a Dragon's Den-style event held in London as part of the Department of Transport's Heritage and Community Rail Tourism innovation competition.

Rail Minister Claire Perry announced the news in the House of Commons, saying: "We want to show the best of British to our visitors and heritage and community railways are part of that package.

“I am delighted that the Swanage Railway is one of 17 national winners across Britain. I look forward to seeing the scheme develop, providing another great reason to visit Dorset."