On 16 March the EU Council of Ministers and the European Parliament reached agreement in a conciliation conference on the second railway package. Subject to formal adoption of the conciliation agreement by both institutions, this legislative package includes provision for the full liberalisation of access to the international rail freight market in the EU from 1 January 2006. It also provides for full liberalisation of national rail freight markets from 1 January 2007. From that date access to the Irish Rail network will be open to other operators. They will have a right of access to the network. Terms and conditions will be worked out with Irish Rail and will conform with the provisions of the proposed directive. I have no plans to provide additional funding to Irish Rail to specifically support its rail freight operations.
Irish Rail is restructuring its rail freight business as part of an overall plan to address its difficult financial position. It will develop its profitable traffic, such as bulk freight and trainload traffic, and will reshape the loss making container business.
The company has had some success with the plan and has attracted additional traffic, particularly from the west of Ireland. It is negotiating with prospective customers and continues to examine new sources of business. All of this will serve to reduce the impact of freight on the road network.
