THE challenge to build Glasgow's new £74million transport museum is now in the fast lane with the structure's bold shape rising from the Clyde's muddy banks to stake its place in the city's skyline.

Almost exactly a year from when the first turf was cut at the open site, the cladding is helping put shape on the state-of-the-art building which will be dramatically different to the current home of the museum in the West End.

On target MUSEUM fundraisers insist they remain "cautiously optimistic" of raising a further £3million despite the credit crunch. But they admit the worldwide economic downturn is likely to make it tougher for them to reach their target. Appeal director Anthony McReavy said: "Nobody wants to be trying to raise money in the middle of a recession but the credit crunch has not affected the appeal yet. "I would anticipate it will have some impact. We will see the picture more clearly as next year wears on but, at the moment, the appeal is doing well and we are cautiously optimistic." Mr McReavy hopes big businesses will still want to contribute. He said: "People will be looking to rein in and will consider carefully where they put their money and support. "However, some colleagues are finding arts projects are not too badly affected as in a depression people realise arts and culture keep us sane and get us through."

And the transformation comes as a £5million appeal for the Riverside Museum, being built where the River Kelvin meets the Clyde on its north bank, receives a huge cash boost.

Today three trainees from BAE Systems, met the building fund appeal chairman Lord Smith of Kelvin and council leader Steven Purcell to hand over £500,000 cheque.

The donation from the global defence and aerospace firm - one of two parent companies which run the BVT Surface Fleet shipyards at Govan and Scotstoun - is the largest single contribution to the appeal and brings the running total to £2m.

Nigel Whitehead, BAE Systems group managing director for programmes and support, is also chairman of the company's heritage committee.

He said: "We think our heritage is very important and the new museum is an opportunity to celebrate it.

"With the type of business we operate it is not easy to let the public come in and look at what we do.

"The museum is the next best thing and we hope it captures the interest of people who are potentially interested in engineering as a career."

Mr Whitehead described the design of the new building, due for completion in 2010, as "spectacular".

He added: "The building is really going to be eyecatching.

"It makes a statement about engineering and design in its own right."

Appeal director Anthony McReavy said the structure is already beginning to look dramatic.

He added: "You now get a real sense of the form of the museum. It is taking shape quite quickly which is wonderful given we have spoken about it for a long time."

Lawrence Fitzgerald, Riverside Museum project director, said construction staff arrived on site almost exactly a year ago.

He added: "We have completed a large proportion of the base of the building and that work will continue until February.

"About a third of the steel work is up and the building is already looking spectacular.

"It is beginning to slowly evolve out of the landscape and take shape.

"We started at the eastern edge of the building and are now progressing south and west and will reach where the main entrance will be in the coming months.

"The first layer of internal cladding is going up at the moment but that will not be complete for another year."

Lord Smith of Kelvin, chairman of the Riverside appeal, welcomed the cash boost from BAE.

He said: "This is an outstanding contribution from a company which has long been at the forefront of engineering and manufacture in Scotland.

"The construction of the museum is an engineering marvel itself and this partnership with BAE Systems will ensure we can continue to celebrate the finest in design and construction.

"From the museum site, you can see the work being done just downstream by the skilled Clyde workforce and apprentices.

"The donation from our near neighbours will go a long way to helping us to achieve our £5m target."

Mr Purcell added: "BAE Systems has helped to keep alive our proud tradition of Clyde-built ships in Govan.

"They are investing in our young people through their innovative apprenticeship scheme and now providing a massive contribution to what promises to be one of the world's most breathtaking museums dedicated to engineering, transport and industry."

The museum will include a display which focuses on shipbuilding on the Clyde and will feature a number of the yards taken over by BAE Systems.

Mr McReavy said: "We were very keen the display was not just about the past and that the history of ship building was brought up to date.

"Part of the display will feature a screen almost 20ft high which will show dramatic footage of ship launches and we will include some of the launches of BAE among others."

Work has already started moving items in storage in the existing Transport Museum to the museum resource centre at Nitshill in the South Side.

Around 800,000 items will soon be available to see in the resource centre.

Mr Fitzgerald said: "For months we have been dec-anting material in storage behind the scenes at the existing museum.

"Many exhibits have not been seen by the public for a long time but Nitshill will make these much more accessible."

n BAE Systems apprentice Scott Ballingall is proud to hand over the firm's donation The building makes a statement about engineering and design in its own right