Written answers

Thursday, 16 June 2005

5:00 pm

Photo of Michael NoonanMichael Noonan (Limerick East, Fine Gael)
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Question 117: To ask the Minister for Transport if his attention has been drawn to the fact that Iarnród Éireann intends to discontinue the transfer of maritime containers from Colbert Station, Limerick; if this decision will have a serious impact on traffic through the ports of Limerick and Foynes; if his attention has further been drawn to the fact that a serious additional burden of traffic will be placed on the roads of the region as a result of this decision; if he will consult with Iarnród Éireann with a view to its reversing this decision; and if he will make a statement on the matter. [20467/05]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I wish to advise the Deputy that the responsibility for the development of rail freight operations at particular locations rests with Iarnród Éireann itself.

It is my policy that Iarnród Éireann should remain in the rail freight business and the company has made significant progress in growing the rail freight business in areas where it holds a competitive advantage over road haulage, such as in the carriage of sugar beet, cement and pulpwood. The company 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.

Iarnród Éireann 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 container traffic. In formulating its plan, the company has held wide-ranging consultations with business interests around the country to identify those freight activities which are best suited to rail transport.

The strategic rail review, commissioned by my Department, and published in 2003, contained a comprehensive examination of the rail freight business and its realistic potential to support economic development and contribute to a sustainable environment. This review has assisted the company in formulating its business plan.

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