STOB.L Regulatory News (STOB)

14 Aug 2009 07:00

Stobart Group Limited

("Stobart" or "the Group")

Stobart appoints DB Schenker Rail as provider of UK rail freight services

Stobart Rail, part of the Stobart Group, one of the UK's leading providers of multimodal transport and logistics services, today announces that it has appointed 

DB Schenker Rail (UK) Ltd as its main provider of rail freight services. 

This new contract for domestic rail services within the UK will enable a further step change in the Stobart Group's multimodal aspirations and compliments the recent collaboration between the two companies on temperature controlled intermodal services from Spain.

DB Schenker will assume responsibility for all of Stobart Rail's existing rail freight operations in the UK and will work closely with Stobart Rail to deliver further movement of goods from road to rail with its enhanced national network. 

The new arrangement will also see electric locomotives being used for the first time on Stobart's service from the Midlands to Scotland. DB Schenker's Class 92 electric locomotives enable CO2 reductions of 30%, compared to diesel locomotives, and will deliver an annual carbon saving of 7,500 tonnes on Stobart's existing traffic. 

Stobart Group's CEO Andrew Tinkler said "Firstly I wish to express my gratitude to Direct Rail Services for their service and support over the years in operating the rail service. The move from DRS was not a reflection on either service or performance and was simply due to the rapid expansion of the business and move into Europe following the recent collaboration with DB Schenker Rail (UK) Ltd. These are both exciting and challenging times and by using electric locomotives where possible, we and our customers will ensure we further reduce our carbon emissions."

DB Schenker Rail CEO Keith Heller said "Through our nationwide and European coverage we are able to provide a network of rail freight services that meets the current and future growth requirements of Stobart Rail. This, combined with DB Schenker's commitment to use electric locomotives, enables both companies to widen the use of rail freight by the Stobart's customers and supports the Government's priorities as part of the Low Carbon Transition Plan."

Ends