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Railfreight merger?
Page 10
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• Railfreight customers could be paying higher prices if British Rail's three heavy-haulage freight companies agree to re-merge.
The Government split BR's Freight operation into three companies 18 months ago to encourage competition. But now believes it has a better chance of selling the companies if they combine. Two US freight companies have tabled bids and management buy-out teams are being encouraged to bid for their own and the other two.
So far only two rail users, British Nuclear Fuels and National Power, have taken advantage of rules allowing users to set up their own rail freight operations. Julia Clarke of the Rail Freight Group says the merger could could hurt smaller users who are heavily dependent on rail: "Many middle-sized rail users don't have the option of setting up their own operation."