Eurotunnel, railroads reach operating cost contribution agreement

By Caroline Salls

Pittsburgh, July 27 - Eurotunnel SA and the railroad operators SNCF and British Railways Board reached an agreement that resolves a dispute regarding the calculation of their contribution to the Channel Tunnel operating costs, according to a news release.

"It was regrettable that Eurotunnel had had a dispute with its principal customer for nearly 10 years, and it was therefore necessary to turn that page," Eurotunnel chairman and chief executive Jacques Gounon said in the release.

"This agreement restores a favorable climate for better cooperation between the railways and Eurotunnel."

The new agreement confirms a previous agreement relating to the operating costs for the years leading up to 2004, settles the 2005 financial year and sets out a lump sum mechanism for the majority of operating costs for 2006 to 2014.

According to the release, consultation mechanisms have also been put in place in order to determine the contribution of the railways to renewal investments.

These measures allow the railways to participate in the savings made by Eurotunnel's railway costs, excluding shuttles.

Eurotunnel is the Paris-based operator of the Channel Tunnel.

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