Michael Noonan (Limerick East, Fine Gael)
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Question 102: To ask the Minister for Transport the new or additional freight services which have been developed by Irish Rail since 2000; if he has satisfied himself that Irish Rail is sufficiently robust in seeking to expand such business; and if he will make a statement on the matter. [16267/06]

Jan O'Sullivan (Limerick East, Labour)
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Question 129: To ask the Minister for Transport the actions he has taken since taking up his position to encourage greater use of freight by rail; the outcome of these actions in terms of percentage tonnage carried by that mode in each year since taking office; and if he will make a statement on the matter. [16234/06]

Pádraic McCormack (Galway West, Fine Gael)
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Question 166: To ask the Minister for Transport his views on the expansion of the national rail freight industry; the initiatives he has pursued in order to advance such an aim; and if he will make a statement on the matter. [16262/06]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 102, 129 and 166 together.

The Strategic Rail Review, commissioned by my Department, contained a comprehensive examination of the rail freight business and its realistic potential to support economic development and contribute to sustainable development. Iarnród Éireann, in responding to the challenges contained in the Review, developed a business plan with regard to freight. The company's goal is to return the rail freight business to profitability. To help achieve this turnaround, Iarnród Éireann withdrew from loss-making groupage, palletised and single container rail transport in the recent past. The company carried a total of 1,904,628 tons of freight in 2004 and 1,660,147 tons in 2005.

Despite recent setbacks, the company has made progress in growing the rail freight business in areas such as mineral ore and pulpwood where it holds a competitive advantage over road haulage. Iarnród Éireann has:

—increased the trainload pulpwood business by modifying surplus wagons and providing additional services for Coillte between the West of Ireland and the South East;

—recently altered rail schedules to provide three additional trains per week for Tara Mines with a potential to carry an extra 85,000 tonnes per annum of lead and zinc between Navan and Dublin Port,

—modified surplus platform wagons to provide a trainload service for containers between Ballina and Waterford Port.

It is clear, however, that the company has genuine difficulty in identifying business opportunities which offer reasonable volumes of business on a regular basis to make up complete train loads. It is not feasible to run trains with one or two containers. Most Irish industry is focused on 'just in time' transport and as our road network continues to expand and improve across the country, the role of rail freight becomes more problematic, because all rail journeys involve road movements at each end of the logistics chain. Furthermore, in Ireland distances are short. The experience across Europe is no different. Rail freight activities are most economic where distances are long, where there are large volumes to be transported and where the freight to be carried is not time sensitive.

Since 1999, Iarnród Éireann has invested over 1.5 billion euro in rebuilding the railways, with Government and EU support for the investment programme. This has delivered improvements in new trains, upgraded infrastructure and customer facilities. While such investment has primarily focused on improving passenger services, the investment in improving rail infrastructure also has a direct beneficial impact on freight activities.

The market for rail freight will be fully liberalised in a matter of months but so far there has been very limited interest shown in this development.