The Swanage Railway Trust

Some time ago Southern Locomotives Limited submitted to the Board its proposals for hire charges for 2006 which included a significant increase compared with the present. Following earlier requests to increase charges, the fees during 2004 were increased by 22% for 2005 and a further increase of 23% was requested by SLL for 2006. This coincided with the Railway’s Directors meeting to conduct a business review specifically aimed at seeking to reduce costs. Naturally, there were real concerns about the cost of hiring locomotives and also the cost of operating each one. The cost of coal has, of course, risen dramatically this year and we anticipate a further increase in 2006.

When considering our locomotive requirements for 2006 it was concluded that four would be required with possibly a fifth for the peak two-train period. With 6695 now virtually operational and the M7 expected back next Spring, there appeared to be only a requirement for two Southern Locomotives engines for much of the year. Since a West Country is significantly more expensive to operate than a smaller engine it was reluctantly concluded that we would seek to operate 80104 and 80078 and allow SLL to take Eddystone to another railway for a short period to earn additional money rather than increase their hire charges to us.

Southern Locomotives acknowledged the Swanage Railway’s difficult financial position and set about planning for 2006. We understand that it was announced at their Annual General Meeting last Saturday that the locomotive would probably go to the North Yorkshire Moors Railway where it seems they can earn more money than could be paid by the Swanage Railway and they are attracted to this arrangement as it may include operating over Network Rail metals to Whitby and Middlesbrough.

We emphasise our understanding to be that:

• Eddystone’s home base will continue to be the Swanage Railway, as will all other SLL locomotives.
• Eddystone will return to Swanage in due course.
• Eddystone will not leave for Yorkshire until 80104 has returned to traffic.

The Swanage Railway will continue to provide facilities in order that SLL may continue to restore and overhaul locomotives for the benefit of the Railway.

We are assured by Southern Locomotives that they intend to press ahead with the restoration of 34070 Manston and 34072 257 Squadron as rapidly as possible with a view to having one available for the 2007 season. We understand that boilers intended for both locomotives are now being overhauled by LNWR in Crewe and that 257 Squadron will be moved to Herston before Christmas this year – indeed SLL have employed an additional locomotive fitter so as to accelerate work. There is no reason to believe, at this time, anything other than that both locomotives will operate at Swanage. However, it would obviously be highly uneconomic to hire three Bulleid pacifics simultaneously.

Finally, to clarify matters, Southern Locomotives Directors have been supportive of the Railway’s efforts to resolve its financial situation and have, in our view, acted legitimately at all times. They were within their rights to seek to increase their income in 2006 and it is unfortunate that this coincides with a difficult time for the Railway’s finances. We want our relationship with SLL to continue to be amicable and constructive, for the benefit of both organisations.

If anyone has any queries please do not hesitate to contact us and we will do our best to answer them.

The Directors of the Swanage Railway Company Limited

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