Is IE sending the wrong message

andrewfaulk

Saw in the IE staff magazine that Reynolds logistics won the contractor award for this year..

Reynolds logistics are responsible for fuel distribution to IE sites around the country, and are a very good company at what they do..

However my issue is that IE are sending a bad message to prospective customers of their rail freight services, which could be used to move their fuel to some of their locations(Limerick and Drogheda without too much effort).

1.They switched when fuel to these locations could be moved by rail given a bit of will within IE
2. They are giving their road based contractor an award and the publicity that goes with it.

Just for context, I am a big supporter of IE so this is not another bash IE thread but this is one issue that I do think they dropped the ball on

Isambard

but CIE always has been a road operator as well as a rail one.

Moving oil at extra cost by rail just because it's there makes no sense. Block loads yes, the odd wagon to Limerick or Drogheda depots ,no.

andrewfaulk

Isambard wrote: »

but CIE always has been a road operator as well as a rail one.

Moving oil at extra cost by rail just because it's there makes no sense. Block loads yes, the odd wagon to Limerick or Drogheda depots ,no.

IE is no longer a road operator though, and it's not like they are even doing it in house, they are using the competition!

And the cost need not be high.. IE already runs a wagon transfer a week to Limerick that could be used to move 2/3 tank wagons of fuel..

And the fuel for Drogheda could be moved in the consist of a Tara mines train, the loco's on these are usually going to the slab in Drogheda for refuelling anyway!

Isambard

you only have to look at the UK to see locos and other rail vehicles routinely being moved by road. It's cheaper and easier to manage for a busy railway.

andrewfaulk

Isambard wrote: »

you only have to look at the UK to see locos and other rail vehicles routinely being moved by road. It's cheaper and easier to manage for a busy railway.

The U.K. is a bad comparison for a lot of reasons.. Let’s be honest, their privatised segregated rail system is very different to the conditions in Ireland.. a big part of the reason it makes sense over there to move rail vehicles by road is that there is a cost to running on the network, even for a LE move.. It’s also part of the reason you see convoys of up to 10 locos in a sort of super LE move..

Also, in my scenario the fuel tanks would be moved in existing trains. IE basically have a less than wagon load network centred on Limerick run for the CME dept, so I would be talking about making use of that or other existing LE and freight moves..

Victor

Why would you carry fuel across the country on a train when you can get a whole ship load into Foynes?

donvito99

Victor wrote: »

Why would you carry fuel across the country on a train when you can get a whole ship load into Foynes?

Because they dont want to photograph a boat.

end of the road

donvito99 wrote: »

Because they dont want to photograph a boat.

they do. there are people who love photographing boats.

andrewfaulk

Victor wrote: »

Why would you carry fuel across the country on a train when you can get a whole ship load into Foynes?

All IE fuel is handled in their depot in Dublin Port..

Also, doubt they use enough down in Limerick to justify a ship full! Unless it’s a small ship

Victor

andrewfaulk wrote: »

All IE fuel is handled in their depot in Dublin Port..

Also, doubt they use enough down in Limerick to justify a ship full! Unless it’s a small ship

That's the thing about fuel. You can also buy it from a distributor who imports a stock and stores it.

Isambard

in other words, it's more efficient to buy it off someone who distributes locally anyway than to deliver it by train from Dublin.

L1011

Investing in liquid fuel distribution kit when your usage is going to drop significantly with DART and the MTU retrofits to 22ks would be unwise also

andrewfaulk

Isambard wrote: »

in other words, it's more efficient to buy it off someone who distributes locally anyway than to deliver it by train from Dublin.

All IE fuel is imported to their depot in Dublin Port.. They buy in bulk loads net of excise and taxes, add green dye themselves (to make it marked gas oil aka green diesel) and then distribute from Dublin to their depots around the country.. Rail fuel is all net of excise and taxes so this is the best way to administer it

Why would they buy off a middle man, and pay his profit margin when you can do it cheaper yourself

andrewfaulk

L1011 wrote: »

Investing in liquid fuel distribution kit when your usage is going to drop significantly with DART and the MTU retrofits to 22ks would be unwise also

Diesel will be around until at least 2040, probably longer for rail vehicles,they wouldn’t be buying 41 new diesel rail cars otherwise..

Bear in mind that rolling stock has a 25 year asset life.

And rolling stock(4-6 tank wagons) is the only investment that would be required to move fuel by rail.. Not sure if it is still the case but limerick depots fuel was being pumped from road tankers into rail tank wagons to go 500m until relatively recently as the fuel discharge point was only accessible by rail!