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24 May 2002
ORR/06/02
The Rail Regulator, Tom Winsor, has issued directions to Railtrack PLC (in railway administration)* requiring the company to enter into a new five-year access contract with English Welsh & Scottish Railway Limited enabling EWS to run freight services on Britain's rail network.
The company's current contract with Railtrack ends on Friday 31 May 2002, having previously been extended for an additional year. The new contract starts on 1 June 2002 and runs for five years. Mr Winsor said : "As the parties were unable to agree on the terms of a fresh agreement, I have today issued directions, under section 17 of the Railways Act 1993, for a new five-year contract.
"A five-year deal will be particularly important to EWS in providing a platform to grow its business, and equally important in the context of the Strategic Rail Authority achieving its freight strategy and the Government's target for rail freight growth."
Copies of the document - EWS - Railtrack: Rail Regulator's conclusions on application under section 17, Railways Act 1993 - can be accessed here or ordered from Sue MacSwan, ORR Librarian, tel: 020 7282 2001; fax: 020 7282 2045; e-mail : rail.library@orr.gsi.gov.uk.
Notes for editors
1. On 7 February 2002, EWS asked the Regulator to direct Railtrack to enter into a new track access agreement with it for rail freight traffic throughout Great Britain. EWS's existing track access agreement with Railtrack expires on 31 May 2002 and the new contract is needed to take over immediately the present one ends.
2. The application was made under section 17 of the Railways Act 1993. In the case of track access, section 17 is available to a train operator if it has been unable to obtain acceptable terms from Railtrack for access to its network.
3. In a section 17 case, as in all applications to him concerning the approval of the allocation of capacity of railway facilities, the Regulator must make a judgement according to the public interest criteria in section 4 of the Railways Act 1993 as to the most efficient and economical, as well as the fairest, allocation. He is not required to accept the views of either the applicant or Railtrack as to what should be done.
4. In the EWS case, the Regulator consulted widely in the railway industry and received representations from many organisations including the Strategic Rail Authority, the Health and Safety Executive, the London transport authorities, Passenger Transport Executives and the freight and passenger train operators likely to be affected by his decision. A hearing was held on 30 April 2002 and the transcript of it is on the ORR website.
5. The directions issued to Railtrack by the Regulator require Railtrack to enter into a five-year track access agreement, expiring on 31 May 2007. It covers substantially all of the Great Britain railway network.
6. Railtrack and EWS have until 28 May 2002 to enter into the new track access agreement.
7. The decision of the High Court (in a case brought by the Regulator against the administrators of Railtrack) on 21 May 2002 has no effect on this decision.
Press enquiries:
ORR Press Office : 020 7282 2002/2007
NB: * any references to Railtrack mean Railtrack PLC (in railway administration). | 