Question to the Department for Transport:

To ask the Secretary of State for Transport, what contingency plans he has in place in the event of a rail freight operator entering insolvency.

The Government is committed to working with the rail freight industry to support its continued success, including through the provision of funding for investment in the rail freight network during Control Period 6.

There are five Freight Operating Companies in the UK: DB Cargo, Freightliner, GB Railfreight, Colas Rail Services and Direct Rail Services (DRS). All are privately owned by foreign parent companies except DRS which is a wholly owned subsidiary of the Nuclear Decommissioning Authority established at privatisation to transport nuclear flask. The rail freight industry is highly competitive. Since privatisation, it has transformed into a dynamic and efficient sector.

The sector has a proven ability to diversify and innovate in response to changes in market demand, as demonstrated by the recent growth in intermodal and construction traffic following the decline of coal. Government will continue to work with industry to ensure it retains its vital role in the national economy and continues to innovate in order to access new opportunities.