BR expects smaller share of freight
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• Development of its freight services on he basis of the expectation of a smaller ;hare of the market is proposed in British Railways Board's review of policy published 3n. Tuesday.
A summary of the Board's much longer report to the Government, this report is Jescribed as an interim strategy for the railways over the next decade and envisages a virtual doubling of the present investment level.
Ministers will be considering the report in relation to other proposals prepared by the Environment Department in which one option is a cut-back in railway route mileage from 11,600 to some 6700.
On freight the report concedes that the trend will be for the further decrease in wagon-load consignments against the background of continued growth in train-load traffic including movement by Freightliner. The Board expects to carry 191m tons in 1981 compared with 195m in 1971.
By 1981 it foresees the establishment of a train-load and selective wagon-load system of similar ton mileage to the present business but with a different "mix".
According to the Board's .projections, Freightliner business between 1971 and 1981 will grow from 5m to I lm tons and other train-loads from 121in to I 56m with a decline in wagon-loads from 69m to 24m.
Because of the low revenue-earning capacity of bulk goods carriage, the railways expect freight receipt to be only £185m in 1981 at 1972 prices compared with £202m two years ago.
The report stresses the need for a stable freight operation with a realistic programme for the renewal of the wagon fleet. It expects its own wagon fleet to be reduced from 287,000 in 1972 to something over 100,000 by 1981, Similarly the number of parcels vehicles could be cut from 5750 to 2900.
British Rail's annual report for 1972 also published this week shows that after taking into account the paying of corporate expenses, interest and other financing charges the Board was left with a deficit of £26.2m — £10.8m more than for the previous year.
Towards the end of the year BR's freight traffic overall was moving at a level around 400,000 tons a week higher than in 1971, but over the year total tonnage carried was 20m tons less than in 1971. The biggest loss was due to industrial disputes. However, oil traffic increased by 12 per cent during the year which was almost double the rise in inland consumption and the carrying of cars and car bodies increased by 16 per cent. Revenue from Freightliners increased by 10 per cent.