Jarvis to close freight container operation

RAIL maintenance and freight group Jarvis today said it is to close its freight container business due to poor demand.

The York-based group said it is closing the operation, which delivers containers from Thamesport docks on the Thames via rail to Doncaster and Birmingham, “with immediate effect”.

Jarvis said the decision was “as a result of continued poor demand due to the current economic downturn”.

It has not revealed how many jobs will be lost because of the move.

It said the move would result in a non-cash exceptional charge against profits of up to £3m in the current financial year.

Jarvis said the freight container operation represented less than 1% of the company’s turnover in its last financial year. Its customers include shipping lines and logistics suppliers.

It said its Fastline Freight coal haulage business with E.On has continued to perform in line with management expectations and will not be affected by the decision.

It has a five year contract to haul coal for power supplier E.On from Immingham, Liverpool and Avonmouth to Ratcliffe-on-Soar and Ironbridge power stations.

Last month Jarviis said it would look to reduce its operating costs following Network Rail’s decision to reduce track renewals on the London North East programme.

The firm agreed a revised cost structure with Network Rail following the decision, but this is expected to result in neutral cash flow for Jarvis.