Trainload Freight

Trainload Freight

The four sectors of Trainload: Top row: "Coal", "Metals" Bottom row: "Construction", "Petroleum".
Company type	State owned
ISIN
Industry
Predecessor
Incorporated
Founded
Founder
Defunct
Fate	split into regional sectors for privatisation
Successor
Headquarters	,
Services	unit trains
Revenue
Operating income
Net income
Total assets
Number of employees
Parent	British Rail
Website

Trainload Freight was the sector of British Rail responsible for trainload freight services. The division was subdivided into four sub-sectors; coal, petroleum, metals and construction.

It was formed in 1988 from the trainload operations of British Rail's Railfreight division. The company existed until 1994, when, as part of the privatisation process of British Rail, it was split into three separate companies by region: Load-Haul, Mainline Freight and Trans-Rail.

History

Trainload Freight (TLF) was created in 1988 as the sector of British Rail responsible for operating unit trains. The division was subdivided into four sub-sectors according to cargo carried: Coal, Construction, Metals, and Petroleum. Other wagonload freight activities and containerised freight were organised in the Railfreight Distribution (RfD) division at the same time. The trainload business represented approximately 80% of British Rail's total revenue from freight, and 90% of freight traffic by mass. Trainload Freight was the only consistently profitable freight sector within British Rail.

In 1988, the company was authorised to acquire 100 Class 60 locomotives, at a cost of approximately £124 million.

File:Ex-Railway Station, Brocklesby - geograph.org.uk - 662960.jpg

Class 37 hauled tanker train with petroleum sector decals near Immingham (1993)

In 1992 the company had revenue of around £500 million and made a profit of £67.5 million, exceeding government targets of a £50 million profit. Returns on capital assets were typically over 8% in the late 1980s prior to the early 1990s recession. British Rail was able to charge a 45% margin on basic costs in 1989 for coal transport prior to the privatisation of the electricity industry, after which less profitable contracts were negotiated.

From 1990 to 1994, the sector undertook further exercises to increase profitability; discriminatory pricing was employed. Approximately 10 million tonnes of unprofitable freight had been identified, of which 70% was retained under new working conditions and pricing arrangements; the remaining 3 million tonnes was lost, much of it being freight transport for the cement industry. Cost-cutting measures included a 20% reduction in employees, 50% reduction in locomotives, and 40% reduction in wagons, resulting in rail freight transport being reduced to under 100 million tonnes per annum in the lead-up to privatisation, a modal share of under 5%. Approximately 250,000 tonnes of coal was being transported per day by the company by 1993.

Shadow franchises and privatisation

After the Railways Act 1993, the trainload business was split into regionally based shadow franchises: Load-Haul, Mainline Freight and Trans-Rail. Trainload services offered by Railfreight Distribution were also merged into the regional businesses. All three trainload companies were acquired by North and South Railways, a company set up by a consortium led by Wisconsin Central, and became part of English Welsh & Scottish.

Rolling stock

Class	Image	Number	Power
Class 20	File:Railfreight 20132.jpg		Diesel Locomotive
Class 37	File:Class 37s on oil train.jpg
Class 47	File:47588 2toneRF livery.jpg
Class 58	File:Hugh llewelyn 58 001 (5588690930).jpg	50
Class 60	File:60024 - Eastleigh (10983039095).jpg	100
Class 90	File:90021 at York.JPG	4	AC Electric Locomotive

References

Sources

• Terry Gourvish (2002), British Rail, 1974-97: from integration to privatisation, Oxford University Press