Rail Services.

Dáil Éireann Debate, Thursday - 28 June 2007

Thursday, 28 June 2007

Questions (63, 64, 65)

Jim O'Keeffe

Question:

57 Deputy Jim O’Keeffe asked the Minister for Transport and the Marine his views on the expansion of the rail freight sector; the measures he will introduce to grow the sector. [18103/07]

Ciaran Lynch

Question:

72 Deputy Ciarán Lynch asked the Minister for Transport and the Marine the Government’s policy in relation to the expansion of rail freight; the targets which have been set; the way it is proposed to meet these; the policy in relation to introducing a subsidy to encourage the use of rail freight. [17894/07]

Bernard J. Durkan

Question:

144 Deputy Bernard J. Durkan asked the Minister for Transport and the Marine his plans to divert heavy goods transport onto the rail services; and if he will make a statement on the matter. [18334/07]

Written answers

Minister for Transport and the Marine (Deputy Noel Dempsey)

I propose to take Questions Nos. 57, 72 and 144 together.

Iarnród Éireann continues to pursue a policy of growing its rail freight business where real opportunities present and returning the rail freight business to profitability. Iarnród Éireann has made progress in recent years in growing the rail freight business in areas where it holds a competitive advantage over road haulage, e.g. large volumes or trainloads over long distances. For example, Iarnród Éireann has:

re-introduced the trainload pulpwood business for Coillte between the West of Ireland and the South East;

altered rail schedules and is currently providing four additional trains per week for Tara Mines with a potential to carry an extra 100,000 plus tonnes of lead and zinc between Navan and Dublin Port per annum;

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

Iarnród Éireann has undertaken extensive engagement with industry and transporters but had genuine difficulty in identifying business opportunities that offer reasonable volumes of business on a regular basis. It is not feasible to run trains with one or two containers and Iarnród Éireann has not identified sufficient business, with the exception of the Ballina to Waterford service, to group a number of separate activities together to form a viable trainload. Most Irish industry is focused on ‘just in time' transport which is particularly suited to our expanding and improving road network. 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. 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.

As part of the engagement with industry Iarnród Éireann works closely with port authorities to identify opportunities. Rail freight is fully liberalised since 1st January, 2007, and while no serious representations have been made to my Department for entry to the market to date, I would welcome any expressions of interest. In the absence of real opportunities or proposals for viable long term rail freight business, the development and use of fiscal incentives has not been considered.