Previous plans for the transport interchange at Georgemas Junction, Caithness, failed because of a lack of interest from potential users.

But Highland Council said it believes the time is now right to try once again to secure funds for the project, which would cost an estimated �1m.

The council said a resurgence in the carrying of timber, fish and flagstones on trains should help in ensuring a successful application for EU money.

If the cash is awarded, the council believes it would not only be good for the economy but could reduce traffic on the often busy A9 road.

Funding is being sought from the new round of EU grant allocations directed at the Highlands and Islands and available from next year.

Increase in business

Highland Council's Economic Development Manager, David Richard-Jones, said an increase in rail freight on the far north line has been seen in recent years.

Pipes, scrap metal, flagstone and freezers have all been carried by freight company English, Welsh and Scottish Railway Ltd.

At present, the potential for future expansion is limited given current handling facilities available at Georgemas.

Mr Richard-Jones said the new funding attempt, if successful, should address the situation.

The fresh move to lobby for EU cash is being spearheaded by the Caithness Economic Partnership.