8


Issue 3 2014 Freight Business Journal


Competition Commission finds against MyFerryLink again


The UK’s Competition Commission (CC) has found against Eurotunnel and its MyFerryLink subsidiary in its provisional findings on the tunnel operator’s takeover of ships and routes belonging to from bankrupt French Railways subsidiary, SeaFrance. The CC was considering the issue aſter the matter was referred to it by the Competition Appeal Tribunal (CAT) in December. At that time, it had already found against Eurotunnel but was asked to reconsider certain aspects of the case. The CC aims to make its final


decision by early May. In its provisional findings,


the CC decided that Groupe Eurotunnel and a workers’ cooperative formed by former SeaFrance employees (known as SCOP SeaFrance), had effectively acquired the SeaFrance operation as a going concern and had


thereby gained an unfair share of the market. “The combination of assets that GET and SCOP SeaFrance acquired enabled them to establish ferry operations more quickly, more cheaply and with less risk than if alternative assets had been separately acquired in the market,” said the CC.


This included vessels that


are specifically configured to meet the requirements of the Dover–Calais route as well as ex- SeaFrance staff with experience of running a service on that route. In response, Eurotunnel said


that it “cannot understand how it is possible to acquire a company six months aſter it has ceased to exist and nine months aſter the closure of all operations” and that the CC’s decision completely contradicted that of the French competition authorities. It added: “Groupe Eurotunnel emphasises that over the past


two years the market has in no way been negatively affected by MyFerryLink. On the contrary statements by a competitor confirming that it would have to leave the Short Straits are, in the light of the evidence from public statements about their financial strength and ambitions to expand, entirely incredible.” However, if the CC did not


change its mind “in the light of the current reality, and not based on suppositions from two years ago”, Eurotunnel would withdraw its ferries from the Channel. The CEO of rival cross-Channel


ferry operator DFDS, Niels Smedegaard, welcomed the decision saying: “We are very pleased with the provisional findings and look forward to the CC’s final decision...Our objectives can only be achieved if conditions for fair competition are re-established in the Channel market.”


DHL signs three-nation rail deal


DHL Global Forwarding is to form a partnership to develop China- Europe rail services with United Transport and Logistics Company UTLC will


be a joint-venture


between Russian Railways, Kazakhstan rail operator Temir Zholy and Belarusian Railway, expected to be established in 2014.


///NEWS Paper profits for Port of Tilbury


The Port of Tilbury has opened a new London Paper Terminal (LPT) following a £3.5million in vestment programme. This includes the latest equipment such as intelligent clamps for safe handling of paper rolls as well as liſting and reach-stacker equipment, plus IT systems. Major customers UPM, Sappi and Kotkamills have already signed up to use LPT. The 36-acre terminal which is


inside the port estate, includes 700,000 square feet of covered storage and offers access to the UK’s largest concentration of consumers, says the port.


Freight industry welcomes HS2 plan to head for Crewe


The freight industry welcomed the report by HS2 chairman David Higgins on the planned HS2 north-south high speed rail line, published on 17 March. Higgins called for the first


section of the line to be built from London to Crewe, rather than only from London to Birmingham, as originally envisaged. The former option, the rail freight industry feared, would lead to many more Manchester and Liverpool- bound high speed passenger


trains flooding onto the existing West Coast Main Line north of Birmingham, cutting available capacity for freight. Rail Freight Group (RFG)


executive director, Maggie Simpson, also said she was pleased that Higgins had recommended against pushing ahead with a planned connection between HS2 and the Channel Tunnel rail link across London in its original form, saying: “Although such a connection is strategically important, the proposed scheme was not fit for purpose and presented serious capacity and performance risk for freight services.” Simpson added: “Accelerating


the delivery of Phase 2 to Crewe will also help to relieve capacity for freight services to the major North West conurbations, and we support this recommendation. RFG will be looking for more detailed commitment to this work in coming months and to understand the overall impact on freight capacity.” Managing director of GB


Railfreight, John Smith, added: “The recommendation that phase 1 for HS2 now extends to a new hub at Crewe has the potential to open up routes for freight trains on the existing network. This extension avoids some of the bottlenecks that could have occurred on the classic network as a result of the original phase 1 proposals.” DB Schenker Rail UK chief


executive officer, Geoff Spencer, described the report as “an important step forward. HS2, with proper integration to the UK rail network, is vital for the UK’s continued economic development. Further


growth


in rail freight using the released capacity will help drive significant benefits across the UK. We are pleased some of our key concerns have been listened to and we look forward to continuing to work with Sir David Higgins on this key project.” The


British Freight Association


International (BIFA)


likewise welcomed the announcement. BIFA director general Peter Quantrill said: “Much of the discussion has been about the potential saving in time for the passenger between London and Birmingham and Manchester. BIFA is more focused on the opportunities presented to freight operations with the potential release of West Coast Main Line capacity to intermodal trains.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40