Carry on transporting

Congestion and delays in the transport system could be costing the chemical industry more than £200m a year, according to a survey from the Chemical Industries Association. A sample of 10 major companies in the north west revealed that together they are losing £14m - about 10 per cent of their transportation costs.

David Culpin, CIA director of business and environment says: 'Through our north west regional committee we picked up growing concern about the state of the transport infrastructure. The CIA's president, Robin Paul, attended one meeting and decided that we needed a properly researched body of work before taking action.'

The extra transport costs arise from the need to compensate for failings of the network, for example, earlier departures to guarantee just-in-time delivery. Congestion on the M6 north of Birmingham is one of the biggest issues facing the industry. Culpin is 'delighted' that the Birmingham Northern Relief Road has had the go-ahead.

The vast majority of chemicals transportation goes by the increasingly clogged road network. Only a tiny fraction goes by rail. But English Welsh & Scottish Railways (EWS), the UK's largest rail freight carrier, is aiming over the next five years to double the tonnage it carries, and triple it in 10.

One constructive (and perhaps obvious) solution to the chemicals industry's problems is to take more advantage of the services offered by EWS. Since its owner Wisconsin Central acquired BR's freight service for £250m, last year, EWS has been restructuring and refurbishing its rail freight services.

There is a definite wish within the chemicals industry to move more towards rail transport, providing that enough factors go in its favour. Following discussions between the CIA and EW&S, there is room for optimism. Culpin contends: 'Some of our member companies say that there are real prospects for the chemical industry demonstrating to EWS the need for better access to rail.'

Most observers assess that road transport will always hold sway for local distribution. Assuming that the price is right, for rail to garner more business, there needs to be improvement in railhead reception and handling At the moment, most petroleum deliveries can only be done by road.

To operate a siding is only economical if the company concerned is moving thousands of tons of materials. That level of investment can be offset by two types of grant, available from the Government, or avoided by the implementation of intermodal transfers. This technological development integrates road and rail transport, linking them by containers with universal fittings and the use of dedicated railheads at regional centres. CIA member companies are, according to Culpin, showing more interest in the use of ISO tanks.

Rail's share of total freight transportation fell from about 20 per cent in the 1970s to its present sad figure of 5 per cent.There have been several reasons for this: the withdrawl of Speedlink; 30,000 t/a was lost when Dover-Dunkirk and Harwich-Zebrugge links were lost; and BR lost interest in handling chemicals, not least because it had to deliver an 8 per cent profit margin.

EWS has no such trouble. Chris Harvey, general manager, petroleum and chemicals, says: 'British Rail's freight business was actually quite good. We managed the costs and rolling stock rather well but we were constrained in two ways.

'BR was predominantly a passenger business. We were required to achieve the artificially high rate of return, which led to us ditching business. Also, as part of BR we were not encouraged to operate freight terminals or own road vehicles to give us more flexibility.'

EWS is talking to the old enemy, road haulage companies, about possible joint opportunities. The value that the lorry adds to the chain is in local distribution.

Nowadays, so much of the chemicals industry is not on the rail network. Harvey estimates that less than 1 per cent of companies have direct access to the network. But EWS has every intention of getting back into the market. 'For example, we could offer a road collection service for containers or the 'piggyback' system. If the economics were right then maybe we could actually put a siding in for a customer,' he says.

To achieve its modest ambition of doubling what Harvey acknowledges to be a 'pinprick' in the scheme of freight, EWS is investing heavily. Parent company Wisconsin Central is this year spending £450m on 280 new locomotives. Furthermore, EWS is developing routes and its terminal strategy around the country.