Shropshire rail service axed after passenger numbers fall

A RAIL service linking north Wales with London via Shropshire has been axed, its operating company has said.

The Wrexham & Shropshire rail company said the route, which opened less than three years ago, was no longer viable. It will cease operations on Friday.

The business has not been able to generate sufficient revenues to cover more than 65% of the cost of operating the service and in 2010 alone suffered losses of £2.9m.

The closure means the loss of 55 jobs and the company said it was working to try and find the staff alternative employment.

Wrexham & Shropshire, an offshoot of Chiltern Railways, said the harsh economic climate had been the main reason for killing off the service, which transported passengers into London via Marylebone.

In a statement, the rail company said: “Although the company has strived to increase passenger numbers, it has been determined that the business has no prospect of reaching profitability. Wrexham & Shropshire is not insolvent nor is it being placed in administration and all outstanding financial commitments will be met.”

The firm said it had made a number of attempts to get the service profitable including in 2009, reducing the original five trains a day to four. This was followed in December last year by a further reduction to three when two lightly used services were combined.

In addition to this, an agreement was reached with sister company Chiltern Railways to assist with capacity and the company also investigated operational synergy between Wrexham & Shropshire and Arriva Trains Wales, all owned by parent group Deutsche Bahn DB.  

The opportunity to generate income by serving Wolverhampton, after April 2012 when contractual restrictions are expected to be removed, was also considered.
 
Wrexham & Shropshire chairman Adrian Shooter said: “Regrettably, we have concluded that the potential for further changes to the company’s operations, including any synergy with Arriva Trains Wales, will not improve the financial position sufficiently.  

“The shareholders have invested in excess of £13m in launching the business and funding its losses, and have now concluded that there is no reasonable prospect that Wrexham & Shropshire can become profitable, or offer a return on this investment.”