Trainload Freight was the sector of British Rail responsible for trainload freight services. The division was subdivided into four sub-sectors; coal, petroleum, metals and construction.
Trainload Freight (TLF) was created in 1988 as the sector of British Rail responsible for operating unit trains. The division was subdivided into four sub-sectors according to cargo carried: Coal, Construction, Metals, and Petroleum.[1] Other wagonload freight activities and containerised freight were organised in the Railfreight Distribution (RfD) division at the same time. The trainload business represented approximately 80% of British Rail's total revenue from freight,[2] and 90% of freight traffic by mass.[3] Trainload Freight was the only consistently profitable freight sector within British Rail.[4][5]
In 1988, the company was authorised to acquire 100 Class 60 locomotives, at a cost of approximately £124 million.[6]
Class 37 hauled tanker train with petroleum sector decals near Immingham (1993)
In 1992 the company had revenue of around £500 million and made a profit of £67.5 million,[7] exceeding government targets of a £50 million profit. Returns on capital assets were typically over 8% in the late 1980s prior to the early 1990s recession.[8] British Rail was able to charge a 45% margin on basic costs in 1989 for coal transport prior to the privatisation of the electricity industry, after which less profitable contracts were negotiated.
From 1990 to 1994, the sector undertook further exercises to increase profitability; discriminatory pricing was employed. Approximately 10 million tonnes of unprofitable freight had been identified, of which 70% was retained under new working conditions and pricing arrangements; the remaining 3 million tonnes was lost, much of it being freight transport for the cement industry. Cost-cutting measures included a 20% reduction in employees, 50% reduction in locomotives, and 40% reduction in wagons, resulting in rail freight transport being reduced to under 100 million tonnes per annum in the lead-up to privatisation, a modal share of under 5%.[9] Approximately 250,000 tonnes of coal was being transported per day by the company by 1993.[3]
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