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Freight in the 1990s A special Rail Supplement In depth freight group identity p
Freight in the 1990s A special Rail Supplement In depth freight group identity profiles 12 pages
North & South Railways' acquisition of British Rail's bulk freight businesses (Loadhaul), Mainline and Transrail, along with Rail express systems has created the UK's largest rail operator, and the fifth largest freight transport company in the country.
Completion of this sale has been welcomed by both industry commentators and customer groups such as the Freight Transport Association and the Rail Freight Group.
Customer confidence in rail remains high - Royal Mail, British Steel, RMC, Morro, Shotton Paper, Careless and others have recently signed long term contracts with the company.
Service flexibility and innovation have combined to retain these customers and attract others. The milk industry, for example, is now looking to use rail again after a 15-year gap.
Similarly, the expansion of the 'Enterprise' service will help rail increase its share of the long distance freight market. The current wagonload service has shown it can work, winning approximately 350,000 tonnes from road over the last 18 months. The Road Railer trials between Scotland and Northampton have successfully established a presence with the paper industry while independent research suggests that the current market potential for Piggyback freight is substantial.
The integration of the four companies will create an organisation which is leaner and more cost effective. This, together with other productivity and efficiency gains, will help to make rail more competitive against road haulage. Track access and freight facilities grants should also make
The company will doubtless face challenges in the future, but there is now an optimism in an industry which has succeeded in attracting new business, exploring new opportunities and entering markets which a few years ago it had all but forgotten.
It is an encouraging start which promises to reverse the 30 year decline in the industry.
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