Freightliner Heavy Haul letter to Network Rail

Date30 November 2009
SectionFreightliner Heavy Haul Limited Regulation 29 appeal regarding rolling stock charging
Martin Hunt
Customer Relationship Executive
Network Rail
Ground Floor, Unit 3
Carolina Court, Lakeside
Doncaster DN4 5RA
30 November 2009
Freightliner Heavy Haul Limited
3rd Floor, The Podium
1 Eversholt Street
London NW1 2FL
Tel: +44 (0) 20 7200 3943
Fax: +44 (0) 2073882592
Email: bradburyj@Freightliner.co.uk
Web: www.freightliner.co.uk
Dear Martin
Freightliner Heavy Haul - Track Access
Charges for Waste and Petroleum
As you are aware, Freightliner Heavy Haul Ltd has been in dispute for some while now with
Network Rail over the track access charge rates for our waste and oil flows, in both CP3 and
CP4. As a result Heavy Haul are withholding payments on a number of invoices related to
these charges.
I know that you have spoken to Lindsay Durham recently about this issue and I myself spoke
briefly with Andrew Munden on the subject this week. I hope we are all in agreement that
we should make a final attempt to resolve this matter quickly and expediently, without
recourse to the ORR and all the attendant delay which that will inevitably introduce into
the process. To that end, let me lay out here, Freightliner Heavy Haul’s position on the
matter.
The total net amount of the unpaid invoices is , which is broken down as follow:
Year Control Period Commodity Amount
2009/10 CP4 Oil
2008/09 CP3 Oil
2008/09 CP3 Waste
Oil Traffic (Service Group 6221) - CP4
The CP4 Oil invoices that have been withheld represent invoices from Freightliner period 1
week 1 to period 8 week 3 (including capacity charges and incident cap but less an invoice
related to P4 of £ which was in fact paid). These invoices are disputed because having
finally been granted access to Network Rail’s charging model by the ORR, we can see that a
number of false assumptions have been used in the calculations.
1. TEAP wagons - The loaded rate for TEAP wagons has not been based on an average
of loaded and discharged rates in the model (as should be the case to allow for the
fact that TOPS requires a laden description for this commodity type regardless of
whether it actually contains a product for the journey in question) The weight used
in the model is 97 tonnes – this is clearly a fully loaded weight and we contend that
the average rate should be 62 tonnes [(97+26)/2]. This would be consistent with the
approach used for other oil wagons in the model.
2. TEAK wagons – For these wagons the correct loaded rate of 62 tonnes, based on an
average of loaded and discharged rate, has been used in the model. For this wagon
type however we can see that the charging model incorrectly assumes that these
RailInvest Holding Company (Reg. No. 06522978) is the ultimate parent company and controllin g entity of RailInvest Acquisitions Limited
(Reg. No. 06522985), Freightliner Group Limited (Reg. No. 05313119), Fr eightliner Acquisitions Limited (Reg. No. 05313136), Management Consortium
Bid Limited (Reg. No. 02957951), Freightliner Limited (Reg. No. 03118392), Freightliner Heavy Haul Limited (Reg. No. 3831229),
Freightliner Maintenance Limited (Reg. No. 05713164)and Freightlin er Railports Limited (Reg. No. 05928006).
Registered in England and Wales, Registered Office of all nine companies: 3rd Floor, The Podium, 1 Eversholt Street, London, NW1 2FL. Doc #
389890.01

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