FREIGHT NETWORK: Iarnród Éireann should develop joint ventures with private sector companies to increase the viability of its freight network, the Minister for Transport, Mr Brennan, said yesterday.
The Minister accepted that the closure of unprofitable freight services might be good for Iarnród Éireann, but he said any such closure would be bad for the State.
The transport group also wanted to close loss-making lines linking Limerick Junction with Rosslare, Co Wexford, and the Nenagh-Ballybrophy branch line in Co Tipperary.
After Mr Brennan said yesterday that it he would not allow any lines or freight services to close, Iarnród Éireann said it would review the situation with the Department of Transport.
Mr Brennan accepted that Iarnród Éireann was likely to lose €14 million on freight this year, but said any move to shut down parts of the business would increase congestion on the roads by trucks. However, the Booz-Allen-Hamilton Strategic Rail Review appeared to endorse the Iarnród Éireann stance, stating that company should retain parts of the business that were "commercially viable".
It also found against investment in the Co Tipperary branchline and in the Limerick Junction-Rosslare link.
The review said: "There should be selective pruning and re-shaping of non-profitable traffics with a particular focus on those traffics with a combination of very low levels of operating cost-recovery and limited opportunities for increased volumes and productivity gains." But it added: "Iarnród Éireann should develop a pilot scheme for transparent Government support for current loss-making traffics that may well provide a basis for future investment. The pilot must include efforts for reshaping for enhanced cost-recovery and be underpinned by evaluation criteria and performance measurement." Pushing for the development of joint ventures, Mr Brennan said the Government would examine the introduction of tax incentives to support the service. He said: "If CIE want out of freight services because they are unprofitable, then they should let someone else have a go."