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This new rail line is for the provision of a new P&R station serving the Llanwern ex-steelworks development. Phase 1 is the Stabling Rail Line.
Details from Newport planning here: http://documents.newport.gov.uk/NorthgatePublicDocs/05270113.pdf
What are the plans for the bridge carrying the Valleys Line from Cardiff to Queen Street over the main line to be electrified? The clearance seems very low.