There will be an extension of the Metro via the Leamside line about as far as the south end of the Victoria Viaduct. This has been funded, sort of, and the plans are in place for this. Three w stations are planned, although I cannot remember their names off the top of my head. The 555s have advanced crash worthiness and can therefore run without the prior need for double blocking, and therefore any conversion, along with the existing dual use section, should have increased capacity as a result of this.
This announcement seems to be about two additional bits of funding, in connection with the above.
The first is a connection from the new/reinstated alignment onto the 'big railway' at Pelaw, allowing access for trains onto this alignment.
The second seems to be funding for, or at least an announcement of intent to fund, the reinstatement of the link from Ferryhill to the south end of the Victoria Viaduct, as a diversionary route. This bit is the new announcement, and we shall see if this gets built.
Building this link gets you a semi-segregated freight route from Heaton Depot, along the third line to Newcastle, via King Edward Bridge and Pelaw, the Leamside line to Ferryhill, the Stillington line, the flyunder at Northallerton and the slow lines from there to Skelton Bridge Jn. A reinstated Bensham Chord would also allow segregated access to and from Tyne Yard, which would be just as valuable.
It's unlikely that there would ever be enough demand to build stations down this way, and run the associated stopping services, but we'll see. Any reinstatement would likely exist purely as a diversionary measure, and to take freight off the busy two track section of the ECML. It will be low speed, and the metro on the north end would preclude any high speed services.