asked the Minister for Transport further to the decision by Iarnród Éireann to close the midland yard in the North Wall which serves freight services to Waterford, Galway, Dundalk and Belfast, if he will intervene to reverse this decision in view of commitments given by the Taoiseach that no rail services would be closed prior to the publication of the strategic rail review; and if he will make a statement on the matter. [27007/02]
Written Answers. - Rail Network.
210.
I am informed by Iarnród Éireann that, pursuant to the terms of its agreement with the Spencer Dock Development Company entered into in 1998, it is required to vacate, by 3 Jan 2003, an area in the North Wall currently used to operate its container business. This development has been expected and was originally due to happen earlier this year. I understand that failure to vacate the site in accordance with the terms of the 1998 agreement could expose Iarnród Éireann to significant compensation claims from the developer. CIE has advised me that the revenue generated from the development of the Spencer Dock site will allow significant capital investment for the upgrade of rail services throughout the country.
The agreement entered into with the Spencer Dock Development Company pre-dates my request to the board of CIE to refrain from reducing its services.
I have been advised that, recognising the inevitability of this development, in December 2001 an investment of €1 million was approved by the company to relocate and facilitate continued container handling operations in the North Wall area. The facilities on this new site allow 85% of current container volumes to be handled there. I am informed that to retain the balance of the 15% would have required an additional investment of €10 million. The question of the appropriateness of this further significant investment will be considered in the light of the strategic rail review.
The board of CIE, following a request from me, agreed to make no final decisions regarding the future development of rail freight until the outcome of the strategic rail review. The review will provide a national strategic framework for investment priorities and decisions on the development of rail services, including rail freight. I expect the strategic rail review to be available in the New Year.
Question No. 211 answered with Question No. 202.