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US rail bosses aim to take business from UK hauliers

18th January 1996
Page 6
Page 6, 18th January 1996 — US rail bosses aim to take business from UK hauliers
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Which of the following most accurately describes the problem?

• Wisconsin Railways, the prospective owner of British Rail's bulk freight companies, is bullish about snatching large volumes of business from the roads.

The US firm, BR's preferred bidder for Transrail, Mainline and Loadhaul, says it will win business with improved service and more competitive pricing.

Torn Power, Wisconsin's vice-president, expects to complete the deal next month. He says: "Within a year there will be a noticeable difference: ontime performance; more flexibility; putting the customer first; and more creative marketing."

He also promises innovations, possibly including a singlewagon service. The company wants to reduce costs by using losing staff through natural wastage and by using better equipment. But Rail Regulator John Swift wants a meeting with Wisconsin to discuss "how freight users and their interests can be protected" after the sale. He believes that a single owner for all three companies could need "additional regulatory safeguards".

I Fears are being raised this week that Project Freightliner— the consortium made up of hauliers Russell Davies, P&O Distribution and the port of Felixstowe—could face difficulties in its bid for BR's road/rail container business Freightliner.

Insiders say the initial response from the Office of Fair Trading's inquiry into the bid, requested by the consortium (CM1420 December) is causing concern. Officially the consortium strongly denies there has been any feedback from the OFT.