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Operators warn over threat to rail from access cost plan

23rd November 2006
Page 18
Page 18, 23rd November 2006 — Operators warn over threat to rail from access cost plan
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Which of the following most accurately describes the problem?

But road freight could receive a boost if the government decides to

implement higher track access charges. Sally Nash Feports.

RAIL-FREIGHT USERS could switch back to road if plans being discussed to double network access charges are accepted by the government.

The Office of Rail Regulation (ORR) has suggested racking up access costs and other fees which could push the current total costs from lOOm to about £200m. Following consultation. the ORR's advice will be presented to transport ministers next February. If accepted. the higher charges could come into effect in 2009.

Rail-freight operator English. Welsh and Scottish Railway (EWS) is concerned by the proposals. EWS planning director Graham Smith says: "Let's get this clear, this is not about rail v.s. road but about UK transport as many journeys are a roadlrail combination. What this would do

is make transport more expensive and increase congestion."

Ken Russell. development director of Glasgow-based John G Russell Transport. says around 30% of the company's volume is moved by rail so a major increase in the cost of access charges for freight would have "a substantial effect on our business".

He warns: "There is a very fine balance between the cost of road and rail. If access charges go up, that could tip the balance. We are hoping that the government sticks to its position of incremental access charges for freight—if it doesn't then it is sending out mixed messages."

The Freight Transport Association (ETA) says that if prices rise by the amounts being suggested, rail freight users could move back on to the already congested roads.

Companies considering whether to shift some of their traffic to rail would also be put off by the higher charges, says VIA deputy chief executive James Hook ham.

He adds that the FTA will he looking to the government to honour its pledge toencourage the growth of rail-freight traffic.


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