Depot closure could cost Iarnród Éireann millions

IARNRÓD ÉIREANN could lose millions of euro in business following next week’s closure of its North Wall container depot in Dublin.

Haulage firms are expected to compete for existing rail freight customers, despite Iarnród Éireann’s offer to provide them with an alternative road service.

However, Iarnród Éireann yesterday declined to reveal the value of the freight services which are being transferred to road for commercial reasons.

The company also stressed the decision to close the depot should have no financial implications on its business as it was always forced to operate its freight services at a loss in order to compete with road hauliers.

The decision will bring an end to rail freight services for containers from Galway, Waterford, Dundalk and Belfast to Dublin. The transport of oil, kegs and tanks by rail on the four routes will continue as normal.

Containers for the North Wall will continue to be transported by rail from Limerick, Cork, Longford, Sligo and Ballina. The controversial closure comes at a time when the Government had ordered a strategic review of rail services including the loss-making freight division.

Opposition parties have already branded the closure of the depot as staggering amid claims the company was downgrading freight routes at a time when the road network was already overburdened with heavy lorries.

Iarnród Éireann has estimated the closure of the depot will lead to a daily increase of 14 heavy goods vehicles on the roads. Iarnród Éireann spokesperson Barry Kenny said the company was obliged to vacate the premises as part of an agreement with the Spencer Dock Development Company.

The consortium of which the rail company’s parent, CIE, is a member has recently obtained planning permission to develop the site.

Mr Kenny claimed the closure of the North Wall depot would only affect services located south of Sherriff St Bridge.

They will be phased out from next week with new arrangements complete by January 13. He stressed that the company would continue to handle 95% of existing volumes at the North Wall following the transfer.

Iarnród Éireann has spent 1m on upgrading the North Wall depot north of Sherriff St Bridge.

“A decision was taken not to approve any further significant investment in freight facilities prior to the publication of the Government-commissioned Strategic Rail Review, due to the loss-making nature of rail freight services,” said Mr Kenny.