Background In 1988,
British Rail's (BR) freight operations were split into two divisions
Railfreight Distribution (RfD) and
Trainload Freight (TLF). RfD took over BR's
Freightliner and
Speedlink services and general
wagonload and trainload services, excluding coal, petroleum, aggregates and metals. BR's bulk
trainload services were handled by the
Trainload Freight division. During 1991, the
Rail Express Systems brand was created to handle mail and postal services. After the passing of the
Railways Act 1993, five rail freight companies were formed from RfD and TLF. On 1 April 1994, TLF was split into three separate geographical businesses: Trainload Freight North East, Trainload Freight West and Trainload Freight South East, with each initially given existing contracts, based on the geographic origin of the traffic flow or in the case of power station coal the split was determined by the location of the power stations concerned. There were also some trainload services previously operated by the contract services business of RfD. The three new businesses were to be re-branded as
Loadhaul,
Mainline Freight and
Transrail Freight for the short duration of their existence. The remainder of RfD was split into two companies: Freightliner (
container operations between ports), with the residual RfD company operating freight trains through the
Channel Tunnel. The Mail and Parcels business were sold as
Rail Express Systems and
Red Star Parcels. These companies were subsequently put up for sale by competitive tender.
English, Welsh & Scottish Railway and coal wagons near
Tupton,
Derbyshire in May 2011 at
Crewe Works in June 2003 A new company,
North and South Railways Limited, was formed for the purpose of bidding for the ex-BR freight businesses being offered for sale. It was owned by a consortium, headed by
Wisconsin Central, and financed by multiple investment firms, including
Berkshire Partners,
Goldman Sachs and
Fay Richwhite. On 9 December 1995, North and South Railways purchased
Rail Express Systems for £24 million. With this purchase came the contract for the
Royal Mail train service, including the
Travelling Post Office trains, and the contract to haul the
Royal Train. A fleet of 164 locomotives and 677 postal vans were included along with depots at
Bristol Barton Hill,
Cambridge,
Crewe and
London Euston. Then, on 24 February 1996, British Rail's three
trainload freight companies,
Loadhaul,
Mainline Freight and
Transrail Freight were acquired for £225 million. All four companies were subsequently merged into North and South Railways, nullifying the government's effort to create multiple competitive rail freight firms through the privatisation; the decision to allow the creation of a rail freight company with a dominant market position was justified by the additional competition faced from other transport modes. At the time, rail had a 6% share of the freight market. Initially, the four companies continued to trade under their existing names. However, on 25 April 1996, the
English, Welsh & Scottish (EWS) brand was unveiled. On 10 July 1996, in accordance with the new branding, the holding company's name was changed to
English, Welsh & Scottish Railway Holdings Limited. One of the first actions of the enlarged company was to seek volunteers for redundancy, as it sought to reduce staff numbers by around 3,000, from 7,600. On 24 December 1996, EWS was announced as the preferred bidder for the loss-making
Railfreight Distribution, for which it received grants and subsidies estimated to amount to £242 million over eight years . including subsidies for the use of the
Channel Tunnel. Railfreight Distribution's businesses included international containerised freight, movement of cars and automotive components by rail, and freight services for the
Ministry of Defence. The sale, which included 157 locomotives, At this point, EWS controlled 90% of the rail freight market. Railfreight Distribution was renamed
English Welsh & Scottish Railway International on 1 December 1998. Many locomotives inherited on foundation were considered unreliable, and expensive to maintain; the company invested heavily in modernisation of its rolling stock; by 2002, £750 million had been invested in this manner, resulting in the delivery of 280 new locomotives and in excess of 2,000 new wagons. Around this time, the company was represented by a logo that was colloquially known as the "Beasties", consisting of three heads: the lion of England, the dragon of Wales and the stag of Scotland. A larger version of the logo was called the "Big Beasties". Services included mail, locomotive hire, wagonload traffic (branded 'Enterprise', founded by Transrail Freight), cross channel trains via the
Channel Tunnel, trainload freight including oil, aggregates, cement and traffic related to the coal, electricity generation and steel industries, and infrastructure trains for
Railtrack. Following privatisation EWS began to compete for
Intermodal contracts, while it faced competition from
Freightliner in its core markets. In 1999, the company's turnover was £533.7 million, representing an 80% market share in terms of value. On 1 April 1998, open access operator
National Power's rail division was taken over by EWS, along with its six
Class 59 locomotives and 106 wagons. During late January 2001, the
Canadian National Railway announced it had agreed to purchase Wisconsin Central. The deal, which included Wisconsin Central's 42.5% stake in EWS, was concluded in October 2001. During 2003, the Royal Mail terminated its mail train contract with EWS; this traffic was transferred to aircraft and road transport instead. EWS acquired the assets of wagon bogie company
Probotec Limited in 2005. It was formed into a new subsidiary, Axiom Rail, that also took over responsibility for some of the depots, and leasing surplus locomotives overseas. During October 2005, the company launched a new subsidiary, which traded as
Euro Cargo Rail, based in the French market. Several Class 66 locomotives were transferred from EWS to Euro Cargo Rail. In November 2005, EWS acquired the wagon maintenance business
Marcroft. which were incorporated into Axiom. By 2006, company turnover was reportedly approaching £1 billion. In 2006, the
Office of Rail Regulation fined EWS £4.1 million for engaging in
anti-competitive practices in the coal haulage business; at the time, the company held a virtual monopoly on such traffic, and its practices had led to official complaints from both
Enron and
Freightliner Heavy Haul in the early 2000s.
DB Cargo UK at the
National Railway Museum,
York in January 2009 On 28 June 2007,
Deutsche Bahn announced it had agreed to purchase EWS, subject to receiving regulatory approval, in exchange for £309 million. At the time of the acquisition, EWS had a market share of around 70% in the United Kingdom rail freight sector and had around 5,000 employees. After the transaction was approved by the
European Commissioner for Competition, the transaction was completed on 13 November 2007. At the time of the sale, it was announced that EWS would not be rebranded, however, on 1 January 2009, EWS was rebranded as
DB Schenker along with Deutsche Bahn's
Railion and
DB Schenker divisions. The first locomotive painted in DB Schenker livery was
Class 59 59206 at
Toton Depot in January 2009, being formally unveiled at the
National Railway Museum,
York on 21 January 2009. During 2009, DB Schenker Rail began work to enable
Class 92 hauled trains to operate freight services on the
High Speed 1 by installing in cab
TVM signalling. The project received funding from the
European Commission and it was originally anticipated services would begin in early 2010. On 25 March 2011, a modified Class 92 locomotive travelled from
Dollands Moor to Singlewell using the TVM430 signalling system for the first time. The first of five planned test trains ran as a loaded container train from
Hams Hall,
West Midlands to
Novara, Italy on 27 May 2011. DB planned to upgrade an additional five Class 92 locomotives to allow them to run on High Speed 1, making a fleet of six. In July 2011, a trial run of wagons carrying curtain walled
swap bodies built to a larger European
loading gauge was run from
Dollands Moor, Folkestone to east London. From 11 November 2011, a weekly service using European sized swap bodies has run between
Barking, London and
Wroclaw, Poland using High Speed 1. On 2 March 2016, DB Schenker was rebranded as
DB Cargo UK. On 17 October 2016, new DB Cargo UK CEO Hans-Georg Werner announced plans to cut 893 jobs in a bid to counter 'unprecedented' market changes, these being a combination of factors, including changes in the British Government's energy policy that had resulted in the early closure of coal-fired power stations, hence DB Cargo UK ran 78% fewer coal trains compared to 2015, while UK steel volumes were also dropping as the industry had been impacted by high energy prices; this resulted in DB Cargo UK running 33% fewer steel trains from 2015. However, Werner recognised that "overall UK steel demand remains stable". During 2017, DB Cargo UK announced an after-tax loss for the financial year of £57 million against a turnover of £325 million.
Maritime Intermodal In early 2019, DB Cargo signed an agreement with Maritime Transport Ltd to create a new rail freight operation called
Maritime Intermodal. From 1 April 2019, Maritime took over the running of DB's freight terminals at Trafford Park (Manchester), Birmingham (Birch Coppice) and
Wakefield Europort. Seven
British Rail Class 66 locomotives have been repainted in blue Maritime livery and named: • 66005
Maritime Intermodal One • 66047
Maritime Intermodal Two • 66142
Maritime Intermodal Three • 66051
Maritime Intermodal Four • 66162
Maritime Intermodal Five • 66090
Maritime Intermodal Six • 66148
Maritime Intermodal Seven It is expected that up to ten locomotives will receive the blue livery. ==Services and rolling stock==