login
login
Image header Agence Europe
Europe Daily Bulletin No. 8976
Contents Publication in full By article 13 / 30
GENERAL NEWS / (eu) eu/state aid/transport

Green light to UK State aid for rail freight transport through Channel Tunnel

Brussels, 23/06/2005 (Agence Europe) - On 22 June, the Commission approved State aid granted by the United Kingdom authorities to English Welsh Scottish Railway International Ltd (EWSI), which provides rail freight transport services via the English Channel, and which therefore has to pay "minimal user charges" to Eurotunnel until 30 November 2006. These charges, which are due independently of how much use is actually made of the tunnel, are used to cover the direct infrastructure costs relating to the use of the tunnel for trains, and go to cover the financial obligations originating with the tunnel.

This aid consists of an extension, until 30 November 2006, of the financial arrangements which were approved by the Commission in 1998 (OJ C 103), whereby the British authorities undertook to pay these charges on behalf of EWSI until 30 April 2005. It appears that EWSI's activities relating to the Channel Tunnel are no longer sufficient to allow it to bear the cost of these charges, which were put at 60 million EUR between 1 May 2005 and 30 November 2006. The aid is felt to be compatible with community law, as EWSI has to pay infrastructure expenditure which other rail carriers are not subject to, but which are nonetheless necessary to allow the rail transport services for goods under the Channel to be maintained, and as this helps to promote the Commission's more general objective of creating a sustainable transport system offering quality rail services. For its part, EWSI must try to maintain its activity using the tunnel grosso modo at the same level as currently, and make traction services available to other rail transporters at market prices, in order to reduce barriers to access to goods transport services using the Channel Tunnel.

Contents

THE DAY IN POLITICS
GENERAL NEWS