Freight News, Rail

DB Schenker unconvinced by Freightliner competition commitment

[ January 7, 2016   //   ]

Rail operator DB Schenker Rail UK said that recent commitments by Freightliner to allow more competition for container business to  and from Felixstowe and Southampton may be insufficient. It follows an announcement by The Office of Rail and Road (ORR) in December saying it had accepted commitments by Freightliner to strengthen competition in the rail freight sector. The ORR launched an investigation  in November 2013 into the transport of deep sea containers by rail following a complaint of anti-competitive behaviour. ORR’s preliminary view was that Freightliner and its customers may be restricting competition with other rail freight operators for the shipping of goods between ports and key inland destinations.

Geoff Spencer, CEO at DB Schenker Rail UK, said: “We made the formal complaint because we want to see the relevant markets opened up and operating efficiently for the benefit of the industry.
We welcome the ORR’s intervention and believe the commitments offered will go some way towards addressing certain inefficiencies within the market. However, we continue to have concerns regarding future competitiveness of the market, particularly in light of the capacity constraints at Felixstowe and Southampton as well as the fact that the commitments do not extend to Freightliner’s operations out of London Gateway.”

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