RfD sale goes through
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by Karen Miles • British Rail's last rail freight business will be sold to the private sector this month as the controversial purchase of Railfreight Distribution by an American-backed company reaches completion.
English Welsh & Scottish Railway says it expects the European Commission, which is studying the proposed privatisation because of its international trade implications, to clear the deal by the end of the month.
RID, which made a £59m loss last year on a turnover of £70m, is the only UK company with the right to run whole freight trains through the Channel tunnel. Its sale to EWS, which has already bought most of BR's domestic rail freight businesses, has been dogged by controversy.
Other UK rail freight operators are threatening to challenge the sale if it goes through. arguing that the deal will unfairly subsidise EWS, allowing it to bring the potential cost of transit through the tunnel to nearer that of road.
Complaints that the sale will give EWS a stranglehold on the UK railfreight sector are strongly rejected by EWS.