IUD bids raise fears of freight monopoly
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• The competition to buy Railfreight Distribution (RID) begins in earnest this week with the submission of bids.
The loss-making international rail freight operator will be sold by early next year in what is likely to be the most fiercely contested rail freight sell-off— as well as the final one—by British Rail.
Worries are already being expressed by some rail freight customers that if English, Welsh and Scottish Railway (EW&S) buys RtT) it will control almost all domestic and international rail freight. EW&S already owns BR's ex-aggregates domestic rail freight busi ness. EW&S is determined to run international freight trains and RfD has the rights to run freight trains through the Channel Tunnel.
RfD runs around 160 trains each week through the tunnel, pulling containers, swap bodies and conventional wagons.
The management buyout of Freightliner—BR's old road/rail container business—and international distribution company Tibbett & Britten are likely to submit bids for RM. European distribution company Transfesa, energy generator National Power and US finance house GE Capital, are also thought to be interested.