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Friday, 1 February, 2002, 19:31 GMT
Euro freight route under threat
EWS train - freefoto.com
EWS has shelved expansion plans in Scotland
The company running Scotland's European rail freight hub has said it may be forced to pull out if a row over immigration is not resolved.

A stand-off between the British and French governments over asylum seekers attempting to gain entrance to the UK has led to many direct trains to the Channel Tunnel being cancelled.

EWS, which operates the Eurocentral rail freight terminal in Lanarkshire, is making substantial losses due to the cancellations.

Graham Smith, EWS planning director, said that "international freight was in crisis".


Exports of whisky, consumer goods and Scottish manufacturing have relied on our freight service

Graham Smith, EWS director
The Eurocentral terminal was meant to give Scottish goods a direct route to Europe.

The terminal, located close to the M8 midway between Glasgow and Edinburgh, aims to take more freight off the roads and onto the railways.

Six months ago EWS was planning to expand its central Scotland depot but now those plans have been shelved.

Cancelled trains

Rail companies now have to pay fines for asylum seekers smuggled through the Channel Tunnel.

The problems have caused French railways to cancel hundreds of trains to Scotland.

EWS is now thought to be losing about �500,000 a week.

Whisky
Whisky exports are crucial to EWS
Mr Smith told BBC Radio Scotland that the industry was faced with a huge financial problem.

"We would love to see international rail freight growing and we hope this crisis can be solved by increased security in France," he said.

"When there should be at least 15 trains a night coming through the tunnel in-bound and 15 going out, and the French reduce this to five at best - then there is going to be a problem."

Exports industry

Whisky accounts for three quarters of the goods exported from Eurocentral.

Mr Smith said Scotland's export industry had suffered as a result.

He said: "Exports of whisky, consumer goods and Scottish manufacturing have relied on our freight service.

"Now those customers are having to turn to road haulage, ferries and short seas shipping and the international freight rail link is under threat.

"We are making huge efforts to lobby government, putting pressure on the UK Government.

Unreliable service

"We are asking the Scottish Executive to apply pressure on the government, because ministers have to put a lot more pressure on the French authorities."

The unreliable service means many companies have to pay more to move goods by road.

The Scottish National Party is now calling on the Scottish Executive to put pressure on the UK Government to sort out the immigration problem and save Scotland's only direct freight route to Europe.

SNP leader John Swinney said: "I want Labour ministers in Scotland to argue strongly to protect this vital industry and safeguard our jobs."

A Scottish Executive spokesman said that while both rail freight and European rail services were reserved matters, ministers "recognise the seriousness of the situation"

The spokesman said that Deputy Transport Minister Lewis Macdonald had written to the Scotland Office as part of the concerted effort at both Scotland and UK level to press the French authorities for a resolution to the problem.

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News image The BBC's Hayley Millar
"EWS is facing some stark choices"
News image Graham Smith, EWS planning director
"I think it is fair to say that international freight industry is in crisis"
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