GB Railfreight and Drax Power Limited have signed a contract for the movement of imported coal from the Port of Tyne to Drax Power station near Selby, North Yorkshire.
The deal follows a ‘Heads of Terms’ agreement between the two parties in April this year.
The freight haulier will begin moving coal in new, purpose built hopper wagons during the first quarter of 2007. 48 high capacity ‘HYA’ wagons are expected to arrive in the UK from Romanian wagon builders IRS during March 2007.
GBRf’s move into the UK’s largest bulk freight sector will, according to Business Development Director Jonathan Moser, lead to other coal contracts.
He explained that the backing of parent company First had been a crucial factor in GBRf’s successful move into coal.
“We are grateful for their support,” he said. “First authorises investment when we make a solid case, as was the situation with Drax. We believe that there are a range of further business opportunities in a relatively buoyant market.”
Moser added: “With clean coal technology and uncertainty over alternative forms of energy generation, coal has a bright future within the UK’s future energy mix.”
Dorothy Thompson, Chief Executive of Drax Power Limited said: “Maintaining reliable supplies of coal is a crucial part of our business and we believe that this new contract with GB Railfreight will make a significant contribution to meeting this aim through providing reliable and secure freight.”
Note to editors:
· GB Railfreight is part of FirstGroup plc.
· Woodhouse Communications issued this release on behalf of GB Railfreight.
· For more information about GBRf contact Paul Lawson of Woodhouse on 01444 473588 or email email@example.com.
· For more information about Drax Power contact Melanie Wedgbury of Drax Power on 01757 618381