Scotland's only municipal bus group seems set to join forces with a consortium, including bus company Stagecoach, in a bid to develop a transport system in Edinburgh, writes Raymond Duncan.

Lothian Region Transport is expected to be confirmed as partners with Stagecoach and building companies Morrison Construction and the Miller Group, which are jointly applying to build and operate the Central Edinburgh Rapid Transit bus route from the city centre to Edinburgh Airport.

The parties involved would not comment in detail yesterday about a report linking LRT with the consortium and the #50m venture. An announcement is expected within the next 48 hours.

The rapid transport bus route, which Edinburgh Council sees as one of the key features in its plan to deal with the city's traffic problems, involves Scotland's first dedicated busway.