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Rail Services.

Dáil Éireann Debate, Wednesday - 22 June 2005

Wednesday, 22 June 2005

Questions (87, 88)

Dan Boyle

Question:

82 Mr. Boyle asked the Minister for Transport the estimate of the number of additional lorry journeys that will take place between Dublin and Cork each day as a result of the proposed cancellation of the thrice daily container rail freight service between the two cities; and the possibility of allowing another rail freight operator access to the use of the rail network to provide freight services in view of the continuing withdrawal by Iarnród Éireann from the rail freight business. [21100/05]

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Jimmy Deenihan

Question:

117 Mr. Deenihan asked the Minister for Transport if he has considered allowing private sector operators to tender for the delivery of container rail freight services; and if he will make a statement on the matter. [21222/05]

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Written answers

I propose to take Questions Nos. 82 and 117 together.

Iarnród Éireann held wide-ranging consultations with business interests around the country to identify those freight activities which are best suited to rail transport. The company has developed a business plan based on a strategy with regard to freight which is to: break even by 2006; increase the profitability of the existing profitable business; withdraw from those businesses that are heavily loss-making; and target trainload traffic.

Iarnród Éireann remains in the business of carrying containers by rail on the basis of full trainloads, point-to-point. The company has decided to cease container operations for volumes less than full trainloads. Due to the low volume of traffic between Dublin and Cork, the company has ceased service on this line. The company has indicated that this will have a very minor impact on volumes of road hauled container traffic. The volume of traffic on this line is not guaranteed at any time and is seasonal in character — around 20 containers will transfer over the course of a full day.

Iarnród Éireann continues to pursue a policy of growing its rail freight business where opportunities present. However, as in all businesses, it must adjust the freight business from time to time to reflect market realities.

In accordance with Directive 2004/51/EC the market for international rail freight services will be opened from 1 January 2006. This will enable any railway undertaking established in the EU, whether publicly or privately owned, to provide international freight services on the existing Irish rail network. From 1 January 2007, the domestic freight market will be opened. Under the proposed arrangements CIE, as the owner of the rail network, will be entitled to recoup the costs associated with allowing access to their network. In preparation for market opening, my Department is open to discussions with any interested operator.

Question No. 83 answered with QuestionNo. 53.
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