Whether there was a station there 100 years ago or not is pretty irrelevant in my eyes.
From a student's point of view, such as myself, a new 'metro' station at Byrom St (or Fontenoy) would be fantastic.
I am at Byrom St, along with around 2000 other students and hundreds of staff. The only car parking is for staff, and this is set to close in the future - I think the uni wants to encourage more 'environmentally sustainable' ways of travelling to Byrom St.
Also near this 'station' are many student flats, the Avril Robarts library, the museum, art gallery, and of course the excellent Ship & Mitre pub!
Another way of looking at this in a 'student' perspective is that this tunnel effectively ends up at Edge Hill. It is around this area that many students live, and if a new station was constructed around Smithdown, access to Byrom St for students would be easier, quicker, more 'sustainable', and help ease road congestion.
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One more issue as regards this line and universities, is the even better prospect of opening a new station somewhere around the Liverpool University district, serving even more students. I know the line runs underneath The Dental University, which is more or less in the heart of the university area, but I'm not sure where the exits would be. This shouldn't be a problem though, as some underground exits are so small, you wouldn't know they were.
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