Stobart Announces New Rail Co

RNS Number : 9180U

Stobart Group Limited

21 May 2008

 

STOBART GROUP LTD

('Stobart' or the 'Group')

STOBART ANNOUNCES NEW CONTRACT WITH TESCO TO RUN SECOND DEDICATED RAIL SERVICE

Stobart Group, the leading provider of multimodal transport and logistics solutions, today announces that it has entered into an agreement with Tesco plc to provide a second dedicated rail freight service.

The new service will run from Grangemouth to Inverness and will utilise Tesco plc's new distribution centre in Livingstone. The contract will run for an initial five year period and is valued at £15 million. 

The service will run six days a week and will replace over 13,000 lorry journeys each year, equivalent to 1.79 million lorry miles or 5.3m freight tonnes being removed from the road each year. 

The Scottish Government has awarded a Freight Facilities Grant (FFG) of £525,000 to Stobart to contribute to the capital cost of purchasing the 70 intermodal containers for the movement of Tesco traffic. In addition, they have also provided Rail Environmental Benefits Procurement Scheme (REPS) funding of up to a maximum of £457,600. This grant scheme provides revenue support to freight operators for the transport of inter-modal containers by rail rather than road.

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For further information contact:

Stobart Group	07768 038912
Julie Gaskell, Head of Communications
Lansons Communications
Charlie Field	020 7294 3616
Karen Mignon	020 7294 3685

Notes to Editors:

Stobart Group is one of the UK's leading providers of multimodal transport and logistic solutions. The company provides road, rail, sea and inland waterway transport and operates over 1,500 trucks and four million square feet of warehousing. The Group employs more than 4,000 people in the UK, Ireland and Europe. Core to Stobart Group's strategy is reducing environmental waste through providing innovative transport solutions and efficient utilisation of its fleet. Stobart works in partnership with its customers to offer transparency in pricing enabling them to share both risk and reward.

 

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