Paul Gogarty (Dublin Mid West, Green Party)
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Question 262: To ask the Minister for Transport the volume of freight carried by rail; if this has shown an increase or decrease in recent years; if he will put measures in place to stimulate the use of rail for freight transportation in view of its potential to reduce congestion on the roads and to reduce carbon emissions; and if he will make a statement on the matter. [33362/08]

Jackie Healy-Rae (Kerry South, Independent)
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Question 265: To ask the Minister for Transport his plans to introduce legislation to encourage freight to use the rail service rather than the road network as it would free up the roads, be more environmentally friendly and help to reduce Ireland's carbon footprint; and if he will make a statement on the matter. [33438/08]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 262 and 265 together.

Around 130 m tonne kilometres were carried by rail in 2007. While the overall volume of freight carried has been declining Iarnród Éireann has made some progress in recent years in maintaining the rail freight business in areas where it holds a competitive advantage over road haulage, e.g. large volumes or trainloads over long distances.

I understand Iarnród Éireann has undertaken extensive engagement with industry, transporters and port authorities but has had genuine difficulty in identifying business opportunities that offer reasonable volumes of business on a regular basis. Rail freight generally involves road movements at each end of the logistics chain and given the often short distances in Ireland, it is difficult to develop a business case. Only around 10% of freight movements in Ireland are in excess of 150 km. The experience across Europe is no different. Rail freight activities are most economic over long distances with large volumes and where the freight to be carried is not time sensitive.

In relation to measures to encourage rail freight there is substantial ongoing current and capital Exchequer investment being made in the development and operation of the railway network. Total Exchequer funding allocated to Iarnród Éireann for 2008 amounts to more than €720 million. In addition, rail freight has been fully liberalised since 1st January, 2007, and while no serious representations have been made to date to my Department by private rail operators for entry to the market, I would welcome any expressions of interest.

My Department is currently preparing a Sustainable Travel and Transport Action Plan and freight issues, including rail freight, will feature in that plan.