UKWA chairman gives cautious welcome to offer of lower Eurotunnel freight costs
July 17th 2007

Hints of lower freight costs from Eurotunnel have been given a guarded welcome by chairman of the UKWA, director of the rail freight group and executive chairman of the Potter Group, Derrick Potter.

According to The Financial Times, senior management from Eurotunnel have suggested that they may introduce lower off-peak rates such as those for night crossings.

Despite forecasts as far back as 2000 of up to six departures per hour at peak times and up to 1366 freight shuttled a week, traffic is currently running at sometimes less than 5% of these anticipated volumes because of uncompetitive rates.

As a result of recent corporate financial restructuring, Eurotunnel now has the resources to invest in its freight trains. But under EU competition rules, it must offer other railfreight companies the same rates as it will charge for its own traffic, hence its readiness to provide a more competitive package.

"Although the European Commission's various Directives since 2000 were intended to create a free and open competitive market across Europe for rail freight by 2008, progress in most states other than the UK has been slow and patchy," explains Potter. "The Eurotunnel route in particular has been a big disappointmeht because of uncompetitive rates, and it has failed to take advantage of the fcat that most UK ports are running at or near capacity."

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