Not just Network Rail woes!

[Mayner]

Not just Ireland and the UK Governments seem to be taking a very hard look at the future of the railways.

 

NZ Treasury urges Government to consider closing down most of rail network http://www.stuff.co.nz/business/70115591/treasury-urged-government-to-consider-closing-most-of-kiwirail

 

The railway carries around 17 million tonnes annually about over a 4000Km system at roughly 3 times the freight traffic density of CIE in the 60s & 70s.

 

Low prices and poor demand for commodities like coal, logs and dairy products is adversely effecting railway profitability and Treasury loses patience and pulls the plug.

 

The whole business feels like deja vu, massive Government investment in rail like the British Rail Modernisation Plan, CIE in the 50s and AMTRAK in the 1990s result in failure and retrenchment.

Edited July 9, 2015 by Mayner

[Noel]

Unfortunately intercity railways and freight in small geographical countries with small populations are now "sunset" businesses.

[Junctionmad]

Unfortunately intercity railways and freight in small geographical countries with small populations are now "sunset" businesses.

 

Indeed, just finished reading a 2001 esri critique of strategic rail reviews of IE. Makes thougt provoking reading as to why we should have any intercity rail services.

 

For example , it shows Dublin cork in 2001 as having the worst performance financially when taken against costs , passagner and trip length.

[Junctionmad]

e whole business feels like deja vu, massive Government investment in rail like the British Rail Modernisation Plan, CIE in the 50s and AMTRAK in the 1990s result in failure and retrenchment.

 

Yes because ultimately you cannot have any service where operating losses continue to increase despite massive efficiency progrsmmes, capital investment etc. leaving aside capital costs. The service must be payed for by the users and rail passagners have never in recent history been prepared to do that.

 

Ultimately such business fail

[Mayner]

Yes because ultimately you cannot have any service where operating losses continue to increase despite massive efficiency progrsmmes, capital investment etc. leaving aside capital costs. The service must be payed for by the users and rail passagners have never in recent history been prepared to do that.

 

Ultimately such business fail

 

It looks like Merrion Street may soon be faced with similar decisions about the future of Iarnrod Eireann



 

" In view of the capital funding and operational subvention necessary to maintain and operate our rail network, together with the levels of revenue generated from the network, the current situation with regard to rail is not financially sustainable. The need to ensure value for money must be central to future rail policy.

 

Department of Transport, Tourism and Sport paper "Investing in our transport future A strategic framework for investment in land transport"

 

Interesting the paper indicates that the road user is a nice source of revenue for the Exchequer.

 

Which collects over €4.8 billion a year in tax and excise duty from the road user and spends around €1.32 billion a year (capital & current) on road and rail transport and infrastructure.