Written answers

Wednesday, 19 October 2005

9:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 128: To ask the Minister for Transport if he will commission a comprehensive study to ascertain the comparable overall costs to the State of rail freight [i]vis-À-vis[/i] road freight, and the merits or flaws in providing a State subsidy to encourage the use of rail freight; the reason an adequate analysis was not conducted as part of the strategic rail review; and if he will make a statement on the matter. [29087/05]

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 130: To ask the Minister for Transport the option he is pursuing as policy of the four which were presented for rail freight in the strategic rail review. [29085/05]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 162: To ask the Minister for Transport the response he has had from the private sector regarding increasing the amount of freight transported by rail; and the policy initiatives he will take as a result. [29056/05]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 128, 130 and 162 together.

It is my policy that Irish Rail should remain in the rail freight business. 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. The Irish Rail business plan was developed against the background of the options contained in the strategic rail review, using 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; target trainload container traffic.

In formulating this plan, Irish Rail held wide ranging consultations with business interests around the country to identify those freight activities which are best suited to rail transport. In delivering this strategy the company has made good 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. Irish Rail 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 changes in the market place.

It remains my priority that any additional Exchequer subvention should focus on expanding passenger services to meet the continuing unmet demand for such services, in seeking to address the adverse social and economic impacts caused by traffic congestion.

As I stated in the Dail on a previous occasion, 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 its network. In preparation for market opening, my Department is open to discussions with any interested operator.

My Department has received a recent communication from an international operator outlining its intentions to seek to carry out freight operations in the Irish freight market.

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