Irish Rail to shut down some freight services

IRISH Rail is to pull out of its loss-making freight services which employ 250 people but insists no jobs will be put at risk.

Iarnród Éireann is projected to lose around 25m this year, 14m of which arises from its freight services.

The closure of Irish Fertilizer sic Industries, Iarnród Éireann's third largest customer, has further deepened the company's financial crisis.

Company sources say it is certain to pull out of the transport of oil and shale.

It also plans to cut its transport of small units of cement and container traffic.

It will, however, continue its freight traffic in profitable areas such as ore from Tara Mines, bulk cement, parcels and beer kegs.

Company sources insist no jobs will be at risk and the 250 workers affected will be re-deployed in other areas.

But Labour's transport spokesperson, Joan Burton, said the cuts made little sense and claimed passenger lines in the south-east were now in danger of being closed.

"Cuts like this make no sense. Rail is an efficient and environmentally-friendly way to carry freight and ought to be expanded and encouraged to reduce the pressure on the national roads system," she said.

She said passenger lines linking Limerick Junction in Co Tipperary and Wellington Bridge in Co Wexford would be placed under severe threat in the absence of freight services.

Iarnród Éireann privately estimates the closure of its loss-making freight service will result in around 400 trucks being placed on the road every day.

It is estimated Iarnród Éireann has cut the amount of freight carried on its routes by almost 48% in recent years. The European Union, however, wants to increase rail freight traffic in a bid to cut road accidents.

Management at Iarnród Éireann are to make an official decision on the future of its freight services next month.

The trading position of Iarnród Éireann has raised serious concern in Government, particularly as it receives more than 150 million a year in State support.

Ammonia transport from IFI was one of its most profitable freight services, responsible for around 4m every year.

Transport Minister Seamus Brennan is also examining proposals for significant fare increases from Iarnród Éireann and the CIÉ bus companies in response to their deteriorating financial position.