Intermodal to continue despite £4 million cut in grants

Direct Rail Services has told RAIL it intends to continue running Anglo-Scottish intermodal trains despite the level of grant assistance being evaluated.

Government plans to cut the Mode Shift Revenue Support (MSRS) grant, and campaigners fear this could force freight off rail and onto road. The grant is to reduce from £19.85 million this financial year to £15.74m from April 1, with a further reduction from April 2018 to £15.17m ( RAIL 821).

Following the announcement, Labour’s Shadow Secretary of State for Transport Andy McDonald suggested this could affect DRS as a route it operates will no longer be covered by the grant.

DRS spokesman Rachael Storey told RAIL: “DRS understands that as has happened over the past ten years, the level of grant assistance for intermodal traffic is being reviewed on an annual basis.

“This is a routine activity and traditionally grants have been reduced year-on-year and used as an incentive for rail companies and Network Rail to become more efficient.

“DRS intends to continue to operate Anglo-Scottish services as planned, working closely with Network Rail and customers to ensure best value of money for the service.”

The company plans to “fully support domestic intermodal” she added, stating that the operator believes innovative technology, including the introduction of Class 68 and dual-mode Class 88s as well as efficient and appropriately charged access, can provide costeffective solutions.

She added that the commissioning of the ‘88s’ is a priority; six have been delivered in the past two months, although as this issue of RAIL went to press none had ventured onto the main line.