A guided bus system linking Oxford, park and ride car parks and other towns in the county has been given three major boosts.

A feasibility study into proposals for a bus route entering the city alongside the railway line has reported that a £30m scheme is viable.

David Young: 'GTE could work' It found that a two-way bus route, linking the city centre with the Redbridge and Peartree park and rides, could generate up to £3m annually and would be used by up to 80 buses an hour from all over the county.

The Guided Transit Express (GTE) would free the roads and help the Oxford Transport Strategy to cut city centre congestion.

Running on purpose-built concrete guideways, buses would be fitted with special wheels to keep them smoothly on track.

John Disley, principal transport planner for Oxfordshire County Council, said: "The GTE will make a major contribution to reducing congestion in Oxford. We would like a terminus near the railway station, so we are keeping a close eye on Railtrack's relocation plans."

Railtrack has suggested moving Oxford station to a site off Oxpens Road in 2005 and Mr Disley hopes that facilities for GTE can be incorporated.

A second boost has come from Thames Trains, which has agreed to contribute £10,000 towards the scheme, which could start in 2005/6.

It joins Oxfordshire County Council, Oxford City Council, the Oxford Bus Company, Stagecoach, the city's universities, Marks & Spencer and other key partners as backers.

Michael Hodson, commercial director of Thames Trains, said: "As the operator of Oxford station and the region's main train service provider, we are delighted to join the GTE project.

"This is an exciting and imaginative scheme. It aims to reduce traffic congestion in the city centre by making use of disused land to run guided buses into Oxford."

Further development work will take place over the next 12 months to prepare the project for a Government funding application.

The county council has provided a third boost by agreeing to pay £150,000 towards further study work, with extra money coming from private backers.

David Young, the county council's environmental services director, said: "The consultants' study shows that GTE could work, which is good news. If a bus lane was created along the A40, buses could get to the outskirts of the city quickly and then use the GTE."

Mr Disley added that public consultation on the project would be carried out later this year.

He said: "This won't be a tram system but it will incorporate the quality and efficiency of one."