Up to 56 jobs are set to go in Iarnród Éireann's troubled freight division as further cuts are made to loss-making services.
The company is to cease its unit load container business from July 29th which will mean the end of single containers or tanks being sent by rail. The move will affect around 60 customers who move freight by rail in containers, but in relatively small volumes. However, block liner trains, which are booked by individual companies, will continue.
The company is currently negotiating with unions regarding redeployment and voluntary severance packages.
In a letter to customers who transport containers by rail, the general manager of Iarnród Éireann's Freight Division, Stephen Aherne, said that while this sector amounts to 10 per cent of the company's freight business, it continues to be a "major drain on resources".
A range of cost reduction measures have been introduced, but these have been insufficient to address the "untenable financial position". Charges for rail containers increased by 25 per cent in January, but this has led to a dramatic fall off in customers.
Traffic volumes have dropped by more than 50 per cent since the end of last year. The implementation of a storage charge, which became effective earlier this week, has also resulted in a reduction in the daily throughput of containers.
Mr Aherne's letter stated that Iarnród Éireann had "no alternative" but to terminate the running of "liner trains and cease the transport of single containers/tanks by rail" from Friday, July 29th.
Iarnród Éireann spokesman Barry Kenny said the unit load sector of its rail freight division accounts for 70 per cent of freight losses incurred by the company.
Irish Rail's freight sector has been experiencing a difficult period in recent years, despite the booming economy. IE has ceased carrying fertiliser, ammonia and palletised cement and several rail freight depots have closed.
The volume of freight carried by rail in Ireland has dropped from 3.3 million tonnes in 1992 to 2.14 million tonnes last year.
