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Rail cuts cost to beat lorries
23rd November 1985, Page 12
23rd November 1985
Page 12
Page 12, 23rd November 1985
— Rail cuts cost to beat lorries
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BRITISH RAIL'S Freight Sector is banking on cost cutting to beat off the increasing competitive pressure from road transport.
Competition from road "is bound to intensify both as a result of experience gained by rail customers of road haulage during the (miners' strike and because of the forecast of w.idespread introduction of heavier lorries", the BR Board's 1985 corporate plan says.
And since the pit strike — when railway unions largely refused to carry coal in support of miners — the permanent switch of some traffic to road has lowered receipt prospects by up to £51) million per year, compared with the 1984 plan.
BR's fight-back is based on cost cutting the freight loads' marshalling and terminal costs and other economy measures.