UKWA chairman gives cautious welcome to offer of lower Eurotunnel freight costs
Derrick Potter, chairman of The United Kingdom Warehousing Association (UKWA), director of the Rail Freight Group and executive chairman of The Potter Group, has given a guarded welcome to hints of lower freight costs from Eurotunnel. Recent comments from Eurotunnel's senior management quoted in the Financial Times have indicated they that 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 shuttles a week, traffic is currently running sometimes at 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 own 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.
Derrick Potter explained: "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. The Eurotunnel route in particular has been a big disappointment because of uncompetitive rates, and it has failed to take advantage of the fact that most UK ports are running at or near capacity.
Since privatisation, the UK's rail freight private sector has invested more than £1.5bn, and even with modest government support, has seen rail freight volumes in a highly competitive sector grow by more than 60% in the past decade. My own company The Potter Group has invested heavily in rail connected terminals in the North, North West and the South East to meet growing demand for what is proven to be a more environmentally responsible mode of transport.
With a long history behind it, we have a long way to go before achieving a genuinely open, free and competitive rail freight market across all member states, but this statement from Eurotunnel is a welcome and encouraging move."
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