A new report calling for greater investment in Welsh transport has backed plans to re-build the Aberystwyth to Carmarthen railway as well as re-opening Carno station.

The report from Centre Think Tank – ‘Getting Wales Back On Track’ - calls for billions of pounds in transport infrastructure spending to support the Welsh economy.

It argues that a package of major infrastructure projects could deliver significant economic growth.

While the UK and Welsh Government announced £14bn in extra transport funding last month, very little will come to mid and north Wales, with long-mooted plans to re-open closed railway lines put further on the back burner.

The new report argues that much greater ambition is needed than the fresh Government plans.

For rail links, it proposes a north-south rail link connecting Aberystwyth to Carmarthen, and a new line between Afon-Wen Station and Bangor.

It also calls for the reopening of Carno Station in Powys and renewed pressure on the UK Government to deliver its long-standing commitment to electrify the North Wales mainline.

The report also calls for rural bus routes to be protected and funded properly.

The report said that “achieving this will require fairer funding, and that means reforming the broken Barnett formula.”

“The main challenge faced by so many transport projects would be financing them,” the report said.

“We propose UK-wide changes to the formula and the money Wales deserves from HS2 funding.”

The report said that the “solution” to the loss of “vast sections of the Welsh rail network” would “involve reinstating previously closed lines and stations.

“One of the lines that has recently been proposed for reinstatement is the Aberystwyth to Carmarthen Railway,” the report said.

“As well as linking the aforementioned towns, this would also link mid and south Wales together.

“The Welsh Government has conducted a feasibility study on this reinstatement, which found that it is not economically viable but would be socially viable.

“Therefore, the social impact would outweigh the negative economic impacts of the project.”

A Welsh Government report estimated the cost of reinstating the Aberystwyth to Carmarthen railway at £775m.

The plan would also see a line built between Afon Wen and Bangor, enabling the linking the whole of Wales from north to south.

“A smaller project that could be achieved in a shorter timescale is Carno Station,” the report said.

“Carno is a small town in Powys, which is on the Cambrian Line.

“It used to have a station that was closed in the 1960s, and the site is relatively free for reinstatement.

“Not only would a reinstatement allow for Carno to have a rail link to Birmingham and Shrewsbury, but it would also be a passing place for the whole of the Cambrian Line.

“This would reduce delays for the entire line and allow for another place for trains to pass.

“It would mean that trains do not need to stop at Talerddig, which is two miles west of Carno, where the current passing place depends on train location.”

The report calls on the Welsh Government to “call on Westminster to fix the Barnett Formula.”

“Any new formula needs to better reflect the needs and specific challenges faced by Wales,” the report said.

The report also said that “any money saved from HS2 should be used towards Welsh transport projects.”

“There is no quick fix to the issues of the Welsh transport system, with a combination of several projects being necessary to improve the situation,” the report said.

In the foreword to the report, former First Minister Lord Carwyn Jones of Penybont said there is “always more to do” on improving transport links in Wales.

“In the pre-devolution years, investment in transport in Wales consisted mainly of road-building schemes,” he said.

“Apart from the reopening of the Llynfi Valley and City Lines in the 1980s, rail closures saw the loss of important lines such as AberystwythCarmarthen and Ruabon-Barmouth.

“Communities continued to lose bus services as the impact of privatisation was felt.

“During my time in the Welsh Government, we reopened the Vale of Glamorgan and Ebbw Valley lines and purchased Cardiff Airport.

“Work is also ongoing, through the Bus Bill, to introduce a far more integrated and sustainable service across the country.

“There is always more to do, however, and that is why this paper is so important.

“It identifies further investment in the road network and makes suggestions as to how public transport could be improved.

“Alone among the UK nations, Wales has no power to direct Network Rail, and this has led to historically low investment in the Welsh rail network.

“The development of the South Wales Metro offers one way around that obstacle and can be a model for the rest of Wales.

“The holistic approach it takes towards public transport means that it also offers suggestions for bus and air transport across Wales.

“The paper makes a timely contribution to the debate around the future of transport in Wales, and I have no doubt it will influence decision-makers as we look at better ways to connect Wales internally and to the rest of Britain.”

Lord Jones previously championed several of the proposals in the report during his time in office including a Third Menai Crossing and the Carmarthen to Aberystwyth railway line.

Plaid Cymru's Transport spokesperson, Peredur Owen Griffiths MS, welcomed the paper’s contribution to the debate on transport investment in Wales.

“Wales has been deprived of the funding we deserve for decades,” he said.

“From the underfunding of our railways to the unfair Barnett formula - Wales is being ignored, and consecutive UK and Welsh Governments have not been fighting our cause.

"Over their 27 years in power in Wales, Labour have continually allowed Wales to be overlooked and undermined while refusing to stand up to their colleagues in Westminster to demand the funding we deserve - and Wales' communities are the ones paying the price.

"Transport links between communities in Wales, whether they're separated by a 10-minute drive or one hundred miles, are being let down by creaking infrastructure and sub-standard service provision.

"The billions owed to Wales in rail infrastructure investment from HS2 alone could prove transformational in our goal to connect Wales' communities, but Labour refuse to budge on their refusal to stand up for what Wales is owed.

"At the core of a Plaid Cymru Government would be the commitment to stand up to Westminster and demand that our communities receive the funding they're owed, so their potential, that has been held back for too long, can be unleashed.”

The report's author, William Burrows, is studying for a PhD at Leeds University within the School of Earth and Environment, with the Institute for Transport Studies and the Infuze Project.

He also holds a master's in Economics from Swansea University and a degree in Economics from Aberystwyth University.

He said: "Wales has for too long lacked the transport links needed to grow its economy.

“With a new bridge across the Menai Strait, we can create a gateway between Wales and Ireland.

“This will properly utilise the ferry link with Ireland and will increase trade.

“To become a reality, Wales needs fair funding.

“That means a proper share of HS2 consequentials and a Barnett formula that reflects Wales's real needs."