UR invests in railhead . . .
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• United Transport Logistics has boosted its warehousing capacity by 60% in anticipation of a surge in business for its Oxford railhead with the advent of next year's Single European Market.
Railfreight director Peter Bennett says the company expects railfreight into Oxford to increase by 44% from 50,000 tonnes this year to 72,000 tonnes. Much of the extra freight is expected to come from Austria.
Warehouse space at the Cowley, Oxford railhead has been expanded from 15,000mz
(48,000ft2) to 25,000m= (80,000ft2) including 90m of rail line under cover.
"All the additional freight corning by rail means less being carried by road so it's environmentally friendly," says Bennett.
The Oxford railhead opened in 1984 with a Section 8 grant. Bennett believes its central position makes it ideal for many Continental companies exporting into the UK. "We are a panEuropean company and any company expanding into Europe needs to be able to offer its customers a full range of services," he says.
Motor components, building materials, paper and mineral water are among the consignments coming into Cowley but Bennett believes that future business will include products requiring a faster turnover. But United has no immediate plans to open a second railhead, despite improved Government subsidies.
"The whole market sector is waiting with baited breath," says Bennett.
"We need firm indicators from British Rail on the cost of moving goods by rail and the services offered. No one will make a large investment, grant aided or not, until they know these things," he predicts.
El Operators sending goods by rail in competition with BR will be welcomed by Labour, Shadow Transport Secretary John Prescott has said.
Speaking in the Commons last week Prescott said that private investment for railways could boost their freight capacity.