Private firm to enter rail freight market

A private sector operator is planning to enter the rail freight business to provide competition to Irish Rail on the country's railways for the first time.

A spokesman for Minister for Transport Martin Cullen confirmed last night that "an international freight operator" had recently informed the Department of Transport of its intention to seek to enter the Irish market.

Under the terms of an EU directive, the cross-border rail freight market will be opened up to competition from January next.

Competition will be allowed in the domestic rail freight market from January 2007.

Under the plan to open up the market, CIÉ, which owns the rail network, will be entitled to charge new operators for costs associated with allowing access to the lines and other facilities.

The Department of Transport yesterday did not identify the rail freight company involved in the plan but there is speculation it could be a large UK operator.

Irish exporters have recently criticised what they maintained was a policy by Irish Rail to disengage from parts of the rail freight business. The Irish Exporters Association has urged the Government to introduce measures to encourage private sector interest in the rail freight business.

An Irish Rail spokesman said last night the company was committed to the rail freight business where this could generate a commercial return. He said Irish Rail had expanded its sugar beet business and would continue to expand its pulp wood transport operations.

He said Irish Rail had earlier this year discontinued its "unit load" container business where customers could purchase space on part of a train to carry their goods. He said that this had represented 10 per cent of Irish Rail's overall freight operation but accounted for 70 per cent of its losses.