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Freightliner sale soon

22nd September 1994
Page 10
Page 10, 22nd September 1994 — Freightliner sale soon
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by Karen Miles • British Rail's Freightliner operation could be sold to the private sector within three months, threatening hauliers with tougher competition in the container market.

The Christmas deadline for the sale of the intermodal operator is considered optimistic by some observers. However, BR has underlined its commitment to dispose of the company quickly by calling for all final bids to be submitted within two weeks. Three bids are already being considered.

It is expected that the winner will spend 1995 and 1996 making the operation more competitive with road haulage by cutting costs and jobs. Last year Freightliner lost £39.3m on a turnover of £70m.

The successful bidder will have the option of taking on Freightliner's 60 locomotives and entering the rail freight market as the UK's first major private train operator.

Freightliner's 260 tractive units, 700 trailers and 1,500 staff are also included in the privatisation.

BR will assess the bids on the scale of their demand for a post-sale subsidy, which will be used until the company is back in profit. All past debts will be written off.

Freightliner specialises in carrying containers by road and rail in the UK; the company's new owner is expected to expand international traffic through the Channel Tunnel.

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