The Cardiff Capital Region (CCR) Cabinet has agreed in principle to provide £40m in funding for the development of the £180m Metro Central transport hub around Cardiff Central station.

The proposed Metro Central project is slated to be located in Cardiff’s city centre Core Employment Zone and will involve the modernisation of Cardiff Central train station.

CCR’s financing package will be used for Phase II of the development and to secure similar grants from both the Welsh Assembly and UK Government, as well as private sector investors.

"This development represents a vital step towards creating Wales’ first truly internationally competitive business hub, focused around the nation’s main transport interchange."

In addition, Phase II will also see the addition of a new coach station on the south side of the railway station, a cycle hub and various public realm improvements.

The entire project is expected to create more than 30,000 jobs in the city centre over the next ten to 15 years.

Cardiff Council leader councillor Huw Thomas said: “There is a compelling and urgent need to make sure that Cardiff Central can accommodate predicted growth in passenger numbers, especially given the role that the Metro will play in spreading the benefits of the City Deal.

“This development represents a vital step towards creating Wales’ first truly internationally competitive business hub, focused around the nation’s main transport interchange and creating jobs for the whole region.”

Phase I of the project is already underway and will involve the construction of the new bus station.