Beverley Flynn (Mayo, Independent)
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Question 288: To ask the Minister for Transport if he will make statement on the reported plans of private sector operators to enter the rail freight business; and if it is the policy of Irish Rail to disengage from the rail freight business. [36396/05]

Martin Cullen (Waterford, Fianna Fail)
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The rail freight market is to be opened to competition from 1 January 2006, in the case of international freight, and from 1 January 2007 for domestic freight operations. Liberalisation is in accordance with EU Directive 2004/51/EC on the development of the Community's railways. Significant progress has been made on the transposition of this directive and I will be finalising it in the coming weeks.

My Department has already transposed a number of EU directives as preliminary steps for the liberalisation of the rail freight market. These include mechanisms for the licensing of rail operators and allocation and charging for track access. While no formal applications have yet been received for a railway undertaking licence or for track access, my Department has received a communication from an operator stating its intention to establish itself as a freight operator in Ireland.

As I have stated previously, it is my policy that Irish Rail remains in the rail freight industry and Irish Rail 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.