Rail freight to gain
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• The amount of freight carried by rail looks set to rise following last week's Government announcement on the way rail freight will be privatised. In last week's Queen's Speech the Government backed down on Prime Minister John Major's favoured plan for private regional rail companies — a scheme described by freight users as a "nightmare".
Instead a system expected to produce a higher level of service is planned. The state will continue to own the track and an authority will be set up to regulate activities. BR's freight sector, which carries 138 million tonnes a year, will be sold.
Freight carriers will be able to bypass BR's two freight companies, Trainload Freight and Rai[freight Distribution, and buy space directly on the network. The fate of the two companies, which have a combined turnover of £682m but lost £50m last year, will be decided later.
Users group RUG is "delighted" with the announcement; the Freight Transport Association expects service improvement with possible reductions in rail rates.