The project involves building a 19km single-track branch off the existing Velje – Herning line near Jelling with two new stations serving the Legoland theme park and the airport. The maximum speed on the branch will be 120km/h, with a projected journey time of 29 minutes between the airport and Velje.

Under the agreement, DKr 734m ($US 135m) will be allocated to the construction of the railway, and the government will provide a further DKr 16m to complete environmental impact studies. The line is expected to open in 2020.

The project will be funded through Togfonden DK, a DKr 28.5bn fund approved by the government last year, which will use tax revenues from North Sea oil to fund investment in rail infrastructure.

Billund is currently the busiest airport in Denmark without a rail link.