BR loss predicted
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THE BRITISH Rail freight sector is expected to lose revenue over £100m because of the miners' strike, the BR Corporate Plan for 1984 reveals.
Even though there has been limited tonnage of coal to move, the National Union of Railwaymen has virtually refused to touch it in solidarity with the miners.
But despite the losses in revenue British Rail expects the freight sector to earn a profit of £36m by 1988/89 in line with target. There will be increases in receipts and savings in costs.
At the same time, receipts in future years depend heavily on the long term effects of the strike on the overall market for coal. BR chairman Bob Reid said in the Corporate Plan: "It is, however, very difficult to see the future clearly while the strike is unresolved and customer reaction not yet defined."
Freightliners, BR's container company is to make a net profit of £1.4m in 1984/85. This is expected to rise to £5,3m in 1989/90. BR says that there will be a major reinvestment in assets at the end of this decade, with a significant increase of spending on cranes.
The corporate plan states that the parcels sector is expected to continue in profit. The parcels sector is forecasted to be making a profit of £12m from the 1986 to 1987 year. But parcels will still fall £4m short of its £16m target, BR expects.