Speedlink loss will hit hauliers
Page 10
If you've noticed an error in this article please click here to report it so we can fix it.
• More than half of Speedlink's customers could be left without a viable rail freight alternative following Railfreight Distribution's decision to shut the Speedlink UK wagon-load service next summer.
Those customers affected, who have invested in private sidings to use the Speedlink network are expected to seek compensation from Railfreight Distribution. The Railfreight Users Group, whose members include the Potter Group and Isis Freight Group, says it will be looking for compensation to "cover losses and the necessary investment in road transport". Although Railfreight Distribution is talking individually to customers, it says it is "not starting from the basis that we should compensate. This could fall into the category of a business risk."
It is encouraging Speedlink users to transfer their business on to train-load or intermodal operations when Speedlink closes. But businesses which move only small consignments are unlikely to move to another rail system. "It is the bottom end of the market we will lose," says Railfreight Distribution. "That's where the costs are and that's why Speedlink is so expensive."
The Freight Transport Association's distribution coordinator, David Mitchell, regrets the reduction of choice caused by Speedlink's planned closure, but says it will offer "a welcome challenge to the road transport industry".
Labour transport spokesman John Prescott has criticised the decision, saying it will "force Lorries on to the road, making overcrowding even worse".
But the Road Haulage Association disagrees, saying that the knock-on effect on road haulage can be absorbed by current empty return journeys.
Scottish haulier Peter D Stirling, which owns a railhead at Mossend, and is one of Scotland's biggest Speedlink users, says up to 35% of its business could be affected. Director William Stirling is talking to other BR customers, inchiding Tiger Rail, about the possibility of running contract trains.
The Potter Group, which operates two private rail sidings and runs a fleet of 40 HGVs, may press for compensation, says managing director Stephen Barlow.