Charterail hits back
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• The future of road/rail company Charterail still looked in doubt this week despite its complaint to the European Commission that British Rail is abusing its monopoly position.
Unless the Commission moves quickly on the case, or BR bends to pressure to reduce its locomotive costs, Charterail looks set to go into liquidation. Charterail blames its problems on BR's higher than expected locomotive costs and the effects of the recession.
Charterail has complained of abuse of power under Article 86 of the Treaty of Rome and, if found guilty, BR could be subject to large fines.
A BR spokesman says: "We have nothing to hide and we believe the charge won't stand up... any new proposal by Charterail must cover the cost of the service. We are not going to subsidise its costs."
Unless it can agree quickly with BR to reduce its costs, Charterail's 15 customers — including Safeway, Heinz and Pedigree Foods — will run out of patience.
Managing director Robin Gisby says: "We have sufficient new funds. The missing piece of the jigsaw is agreeing a rate structure with BR. Our complaint is the prices they charge are around 50% above the rates they quoted when we were starting the business."