REPLY :

Around 130 m tonne kilometres were carried by rail in 2007. While the overall volume of freight carried has been declining Iarnród Éireann has made some progress in recent years in maintaining the rail freight business in areas where it holds a competitive advantage over road haulage, e.g. large volumes or trainloads over long distances.

I understand Iarnród Éireann has undertaken extensive engagement with industry, transporters and port authorities but has had genuine difficulty in identifying business opportunities that offer reasonable volumes of business on a regular basis. Rail freight generally involves road movements at each end of the logistics chain and given the often short distances in Ireland, it is difficult to develop a business case. Only around 10% of freight movements in Ireland are in excess of 150km. The experience across Europe is no different. Rail freight activities are most economic over long distances with large volumes and where the freight to be carried is not time sensitive.

In relation to measures to encourage rail freight there is substantial ongoing current and capital Exchequer investment being made in the development and operation of the railway network. Total Exchequer funding allocated to Iarnród Éireann for 2008 amounts to more than €720 million. In addition, rail freight has been fully liberalised since 1st January, 2007, and while no serious representations have been made to date to my Department by private rail operators for entry to the market, I would welcome any expressions of interest.

My Department is currently preparing a Sustainable Travel and Transport Action Plan and freight issues, including rail freight, will feature in that plan.