New rail link may spark inter-city price war

Date Published: 11-Mar-2010

By Darragh McDonagh

The opening of the Galway-to-Limerick railway this month will herald a windfall for local retailers and may spark a price war between the two western cities, according to the Galway Chamber of Commerce.

Towns and villages along the €106.5m route can also expect to benefit commercially in the long-term from the improved connectivity provided by the rail corridor, which will cater for commuters in four County Galway towns.

Five new services are to commence on March 30 which will serve Limerick, Ennis, Athenry and Galway; as well as new stations at Sixmilebridge, Gort, Ardrahan and Craughwell. The journey from Galway to Limerick will take two hours.

CEO of Galway Chamber of Commerce Michael Coyle welcomed the opening of the new route and anticipated a major boost for the county as a result, citing the American adage “civilisation follows the improved highway”.

“We have seen how a town like Claremorris thrived as a result of improved road and rail infrastructure, and I would expect that towns in County Galway will benefit from the opening of the Western Rail Corridor in a similar fashion,” he said.

“I think the introduction of the LUAS in Dublin can be viewed as a microcosm of this, as property prices in areas close to the line have risen since the opening of the service.”

He said that Athenry was an example of how towns can develop as commuter locations when they are connected to urban centres by rail. However, he warned that it may take time for the full benefit of the new rail service to become apparent.

“It is not the case that you can wave a magic wand and suddenly a cast of thousands are using it,” Mr Coyle said. “It will take a longer time for the benefits to accrue, but I think the festival season will be a good time to begin to measure its success.

“We have festival events in Galway that are unrivalled in this country and I think they have suffered over the years as a result of the lack of infrastructure.

Mr Coyle said that Galway pubs and shops could expect a boost in trade as the new railway brings shoppers from Limerick and other areas, but warned that heightened competition was likely that could spark a price war between the two cities.

“There will be an impact on the retail sector but it works the other way as well, and Galway shoppers will be heading for Limerick,” he said. “There will inevitably be more competition but that’s not a bad thing – it should mean good value for shoppers.”

For more on this story, see Page 5 of the Galway City Tribune