'Fast trains' a step closer on Dublin to Cork route

[comcor]

Despite the title, it's a story about Irish Rail finances.

'Fast trains' a step closer on Dublin to Cork route

Minister for Transport Martin Cullen is expected to sign an order in the coming weeks which will see a €350 million increase in the level of CIÉ borrowing for new rail infrastructure which is guaranteed by the Government. John Downes reports.

This follows a ruling by the EU Commission that the guarantee does not constitute State aid.

This raises the permitted limit for the State guarantee from €250 million to €600 million and allows CIÉ to raise money with private banks to finance necessary investment.

In time, for example, this could see the speedier development of 200kmh "fast trains" along the Cork to Dublin route. These trains are currently the subject of a feasibility study by CIÉ.

If they prove to be viable, the new level of State guarantee might see the company proceeding with the construction of the necessary infrastructure through privately-raised finance, and seeking this money back from the Government at a later date.

It is also expected CIÉ will use its higher "credit rating" to implement key aspects of the Transport 21 initiative when they are needed, rather than waiting for the necessary Exchequer funding to come on-stream.

Similarly, smaller capital development works could be undertaken without having to seek Exchequer funds. These would then be repaid out of the company's own finances.

The EU Commission judgement, which was sought by the Government two years ago, has been warmly welcomed by a spokeswoman for Mr Cullen and a spokesman for Iarnród Éireann.

The EU Commissioner for Transport, Jacques Barrot, said it reaffirmed a "long-standing practice" of the commission.

He said under this practice supervising the construction of new transport infrastructure by a public authority is not an economic activity subject to competition law, but a sovereign decision of the member state.

However, this is under the condition that all potential users of the infrastructure enjoy "free and non-discriminatory access", he added.

The commission also noted that it had been told by Irish authorities that the rail network was currently in an unsatisfactory condition and in "urgent need" of investment.

[Thomas J Stamp]

Madness. They ought to use the money to buy more commuter railcars. I really dont see the need nor the demand for 200kph running all the way to Cork. By simple eleimination of the slow bits and removal of timetable padding, together with KRP, it makes the Cork run a lot quicker anyway. Any more money spent on it should only be considered if the CDE's become calcutta.

[Kevin K Kelehan]

I disagree I think it would be a good investment as journey times of two hours CBD to CBD between Dublin and Cork and probably 2 hours 15 for Limerick with a clockfaced railcar connection would be of immense benefit and give rail a clear edge over road transport therebye adding social as well as economic benefit.

The CDE sets can be deployed to any other route such as Galway, Westport, Waterford or Sligo if something is done with the 'Shannonbridge'

[James Shields]

As I understand it, this article just refers to the government being authorised to back IE's loans. High speed rail to Cork is one possible use for these loans, but in no way specified as the intention.

Originally Posted by thomasjstamp

Madness. They ought to use the money to buy more commuter railcars. I really dont see the need nor the demand for 200kph running all the way to Cork. By simple eleimination of the slow bits and removal of timetable padding, together with KRP, it makes the Cork run a lot quicker anyway. Any more money spent on it should only be considered if the CDE's become calcutta.

But in order to get rid of the slow bits on the Cork Dublin line, IE need to start a gradual relaying programme. It would be madness not to lay it to a standard that can support 200kph running down the road. If a significant portion of the line can take 200kph trains, it will obviously handle 160kph trains very well. The cost of building the line to 200kph will be a little higher than building it to 160kph, but it creates opportunities for the future.

Depending on how much of a hurry IE are in, it could take up to ten years to rebuild the whole line. It's only then that that you need to make a decision to buy 200kph stock. And the coaches are already 200kph capable, so all you need to do is buy new power cars.

I presume the government still have to approve projects, just they don't have to wait for funding to start.

[why_does_planning_suck]

I am surprised that the comments here do not stress how important this decision is. Over at the NRA , things did not get going full speed till wee brennan remade the contracts and organised a five year rolling budget.
The ability to take loans will act the same way. This will enable a lot to be done, make no mistake.

[Mark Gleeson]

Problem with this is its a very short term solution, the debt will simply climb rapidly to hit the new limit with interest payments to match. The fundamental problem is lack of timely funding from government.

When CIE was split the entire debt, €171 million if I recall correctly at 2002 prices was transferred to IE, the report into restructuring of CIE recommended it be cleared.

It remains to be seen what kind of spending power IE actually have, new and reopened lines requiring a works order are still DoT as IE have no power unless instructed, next question is the inverse when will the day come that IE refuse to carry out the ministers request, I'm thinking WRC here where management want nothing to do with the bit beyond Athenry. I'm all for balance regional development but thats the responsibilty of the county council

Fundamental issue here is rail services are run by politics not based on sound management principles, what is needed is to set Irish Rail up as a solid dept free commercial company without a single political appointee anywhere and let them get on with it

[why_does_planning_suck]

you don't vote pd do you !

only joking! however whether they take out a loan to do something or get the money direct from government all amounts to the same thing, as it is all government backed.

The difference is that it gives I.E. an more control over it's own finances . this is hugely important. A normal company would in theory be able to take out as much debt as it liked.

Posts merged. Please do not post a new post for every sentance. That is why we have the edit button - Paul