Cost of troubled Cairngorm railway may outweigh its benefits, MSPs warn
A new report by Holyrood’s public audit committee raises questions about the funicular’s future
The cost of monitoring and repairing the UK's highest railway may outweigh its benefits to the economy, MSPs have warned.
The troubled Cairngorm funicular, which opened in 2001 at a cost of £19.5 million, has been dogged by problems in recent years.
It shut in 2018 before reopening in January 2023 after £25 million of repairs, only to close again later that year due to snagging issues.
It opened once more in February 2025, but closed for three weeks in May that year for annual maintenance and remedial work.
Now Holyrood’s public audit committee has raised concerns about whether the railway provides value for money.
Committee convener Richard Leonard said: “It is safe to say that the Cairngorm funicular has had a somewhat troubled history, with repeated and lengthy closures and requiring significant public investment.
“This committee has heard from those in charge of the funicular, the public bodies supporting it, those living and working in the area and nature conservation activists.
“We have heard both optimism and scepticism about what comes next. And it presents a picture of concern for us that the future benefits are not as clear as they ought to be.
“There also needs to be a much more transparent governance structure in place for the running of the funicular. A simplified structure would allow for better public scrutiny of public money and decisions on the future plans for the Cairngorm Mountain resort.”
The committee’s report raises “some concerns that the costs of regular monitoring and maintenance may become disproportionate to its benefit over the projected 30-year lifespan of the funicular railway”.
It calls on the Scottish government to be more transparent about its plans for the funicular and to ensure the project remains value for money.
The railway transports visitors to the mountain’s northern ski slopes and the UK’s highest restaurant and viewing terrace, but has a complicated and troubled history.
It was initially operated by Cairngorm Mountain Ltd (CML) under a lease agreement with Highlands and Islands Enterprise (HIE).
However, CML would go on to repeatedly report financial losses and HIE took it into public ownership in 2008. HIE later transferred ownership of CML to Natural Assets Investments Limited (NAIL), returning management of the resort to the private sector.
The railway then closed in September 2018 after a routine inspection uncovered safety concerns, and HIE acquired the assets of CML and subsequently placed it into administration.
In December 2018, the assets and staff of CML were transferred to a new company, Cairngorm Mountain (Scotland) Ltd (CMSL), which is a subsidiary of HIE.
The committee’s report notes: “This was the second time in a decade that HIE had to step in to save the Cairngorm Mountain resort following financial difficulties.”
A spokesperson for HIE welcomed the report and said it was “working hard to overcome the challenges of recent years”.
They added: "The resort has enjoyed a huge surge of popularity since the funicular returned to service, attracting 122,000 foot passengers since April 2025, plus a further 28,000 skiers taking advantage of the excellent snow conditions this winter.
"We are always conscious of the need to obtain value for money in all our projects across the Highlands and Islands. As a publicly-owned asset for Scotland, Cairngorm is no exception.
"With the funicular back, strong leadership and management in place through the operating company and strategic guidance set out in the Cairngorm masterplan, we believe the resort is now in a great position to achieve its full potential.
"The challenge is to make the current winter season the start of a new and successful chapter that will see Cairngorm affirm its place as a strong contributor to the economy of Strathspey and Badenoch and the wider Scottish tourism sector."
Mike Gifford, chief executive of CMSL, said: “While recognising the challenges of recent years, we are encouraged by the progress made and the positive momentum now building. Our priority is to build on this success and ensure CMSL is placed on a sustainable financial and operational footing for the future.”
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