Red Star in road move
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• Red Star freight could transfer from rail to road if an outside bidder is successful in buying the British Rail parcels arm, which was officially put on the market last week.
BR parcels group managing director Glyn Williams says less urgent parcels would be most likely to shift to road. If sold to another parcels operator "the bulk of the business would be retained on rail", says Williams. However current distribution arrangements will be maintained if a management/employee bid is accepted.
At the Conservative party conference last week Transport Secretary John MacGregor announced plans agreed with British Rail for the privatisation of Red Star. TNT and Parcelforce are believed to be among the leading contenders to buy Red Star.
Red Star currently employs 65 contractors operating 500 vehicles for the collection and delivery of four million packages a year to and from BR stations.