Oireachtas Joint and Select Committees

Wednesday, 4 March 2015

Joint Oireachtas Committee on Transport and Communications

Western Rail Corridor: Discussion

9:30 am

Mr. Frank Dawson:

I will speak on the potential for rail freight along the western rail corridor. The McCann report suggested that if the rail freight demand expressed by industries in County Mayo could be verified, the reopening of the full section between Athenry and Claremorris may be justified under phase two. At the initiative of West on Track, Iarnród Éireann undertook a pilot project in 2005 to charter freight on the Waterford-Mayo route to a logistics company, Norfolk Lines. This was done at a time when Iarnród Éireann had apparently decided to exit all rail freight operations with the exception of Tara Mines. The pilot was successful, and it proved that the projected demand estimated by Mayo industries was real. Approximately 10,000 chartered freight trains have operated then between County Mayo and the ports of Waterford and Dublin. In 2014 alone, over 1,000 chartered freight trains operated and the current number is approximately 20 per week. These are the only intermodal freight trains operating on the island of Ireland today. This is a major achievement given that Ireland is unique in providing no subsidies or grants based on environmental or congestion savings, as is the case in the UK, France and across Europe. Furthermore, the EU reported in 2014 that Ireland's rail access charges are four to five times higher than the charges in Germany, France or the UK. In France, the Mayo rail freight operations would attract €1 million in state subsidies and the train track access charge is €1.60 per 1,000 tonne train kilometre, compared to €9.80 in Ireland. The operations would receive up to €900,000 in state grants in the UK, with track charges of €1.93 per 1,000 tonne train kilometre. If County Mayo can generate 1,000 freight trains per annum serving two ports, I suggest the true potential of rail freight in Ireland is untapped.

The red dotted line on the map now before members is the route currently taken by Mayo freight trains travelling to and from the Port of Waterford. The yellow route is the western rail corridor via Limerick Junction, which is shorter and has the capacity to serve Galway, Foynes, Cork and Waterford. Today's freight trains in Ireland are fast, efficient and weigh up to 1,000 tonnes. Our research shows there is commercial interest in the west of Ireland in new rail haulage of timber, intermodal containers, biomass, wrapped waste and meat products. The EU accepts that rail freight subsidies, grants and low track access charges generate a positive return. A report prepared recently by Arup for the UK Department for Transport found a benefit to cost ratio of 4.27:1 in environmental and congestion costs for every pound of grant expenditure.

We welcome the recent decision of the Western Development Commission to prepare a formal report on the potential for new rail freight traffic into and from the western region. Our view that the potential now exists for substantial growth in rail freight is shared by the paying customers in Irish industry. Mr. Howard Knott will address that issue further. The reopening of the dormant 34 mile railway between Athenry and Claremorris will enable this growth. At present, all freight trains to and from County Mayo rely on a single track to Portarlington, which is 130 miles in lengths and also carries passenger traffic to Galway and Mayo. Reinstating the missing link from Athenry to Claremorris would cost between €25 million and €30 million, less than €1 million per mile, if costings for the reopening of the line to Foynes are taken as the baseline. It would also shorten the routes to the Port of Waterford by 30 miles, to the Port of Cork by 80 miles and to Foynes by 135 miles. It would decongest existing intercity routes, on which freight currently competes with passenger trains, and meet customer demands for daytime transport. It would also satisfy industry expectations of a loop transport system and remove the current necessity for freight trains to Waterford to be shunted through the greater Dublin area, where they have no business.

Reinstatement would provide the capacity to develop new rail freight flows in Mayo, Galway and Clare. It would strengthen the business case for a new intermodal freight distribution hub in Claremorris and deliver the bonus of an extended west coast route for special tourist and heritage traffic from Kerry through Limerick and Clare to Galway and Mayo. This would contribute to tourism growth on the Wild Atlantic Way.

The Environmental Protection Agency, EPA, has indicated that Ireland is at significant risk of not meeting its Europe 2020 targets and that significant reductions are needed in the transport sector. Rail freight generates 80% less CO2 emissions than does road freight. Our research, based on international findings, indicates the value of carbon savings through displacement of lorry miles of the Mayo rail freight operations amount to €2 million per annum. Each Irish rail freight train takes at least 18 articulated lorries off the roads and there is potential to double the size of trains to UK levels of 36 wagons.

In 2012, Iarnród Éireann commissioned a major report into the future strategy for the national rail network, Rail Vision 2030, from AECOM and Goodbody Economic Consultants. The report evaluated a number of potential new rail passenger lines with only Athenry to Tuam on the western rail corridor envisaged as a candidate for further consideration. We believe that the rail freight case strengthens this view. In addition, in work undertaken for the Institute of Engineers, Booz & Company advised that "[R]ailway operating [and] infrastructure companies need to invest consistently - even during the current crisis - in expanding the rail network and driving forward optimisation of capacity ... and order management". Whether it is for rail freight or rail passenger benefit, now is the right time to advance the next phase of the western rail corridor and to connect counties Mayo and Galway by rail once again.

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