Steel switch in Wales
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by Charles Young • Hauliers in South Wales will be severely hit by British Steel's decision to transfer 25,000 truck loads of steel from road to rail by next year.
British Steel expects to transport 400,000 tonnes of steel coil from South Wales to the Midlands via rail this year, rising to 700,000 tonnes in 1998.
Huw Owen, managing director of Owens (Road Services Ltd), believes many owner-operators could be put out of business. "This decision is going to seriously affect road transport in the area. British Steel is the major supplier of work. Fortunately we have 110 trucks on fairly diverse work but British Steel is one of our main contracts. Smaller operators could be put out of business altogether," he says.
The rail deliveries will be made by English, Welsh & Scottish Railways (EWS) from Port Talbot, Elan wern and Ebbw Vale works in South Wales to purposebuilt facilities at Round Oak and Wolverhampton. Final road delivery is being handled by Faber Prest Distribution (Round Oak) and Carline Transport (Wolverhampton).
British Steel claims coils loaded up to 22:00hrs in South Wales can be delivered the following morning, or can be stored and delivered at any specified time round the clock.
However, Huw Owen, doubts whether the rail setup will be able to handle all the work.
"I don't think they will be able to compete in terms of next day deliveries so we are still quite hopeful, only time will tell," he says.