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P CONTRACT

29th May 2008, Page 12
29th May 2008
Page 12
Page 12, 29th May 2008 — P CONTRACT
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Stobart wins Tesco rail service contract

STOBART HAS signed a £15m, five-year contract with Tesco to run a second rail freight service. The move is expected to replace more than 13,000 lorry journeys and reduce a potential of 1.79 million lorry miles per year.

Tony McElroy, corporate affairs manager for Tesco, tells CM that although rail transportation costs are approximately the same as those to operate lorries, the rail service is "of course more environmentally friendly".

Stobart chief executive Andrew Tinkler says the first dedicated rail service launched in 2006 was "a 100% success". McElroy adds that Tesco would certainly consider using the rail method elsewhere in the UK.

Stobart has already been awarded a £525000 Freight Facilities Grant by the Scottish government for the service, which will run from Grangemouth to Inverness and is set to launch no later than September.

The Scottish government also offered funding of £457,600 through the Rail Environmental Benefits Procurement Scheme, which promotes use of railway over road transport.

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Organisations: Scottish government

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