Power station coal deal sealed

The deep mine closed last year

Scottish Power has signed a deal with the ports operator Clydeport to supply coal to its Longannet power station in Fife.

The agreement could help secure plans to re-open the Stirling - Alloa - Kincardine rail line.

The deal should save Scottish Power about £10m a year and will be worth a similar amount to Clydeport.

The company plans to ship coal into Hunterston on the west coast and transport it by rail to the power station.

Up to five million tonnes a year could be moved on the new rail link.

Plans to re-open the Alloa line will come before the Scottish Parliament in its new term.

Bridge route

If the legislation is passed, the route should be up and running by 2006.

Until then, Clydeport will move most of the coal over the Forth Bridge with the rest transported by road.

Scottish Power previously used coal from the deep mine at Longannet before it closed last year.

Clackmannanshire Council has introduced a private bill seeking permission to reopen the railway line from Stirling to Longannet.

It also wants to build a link road following the closure of Hilton Road in Alloa.

Profit recovery

Meanwhile, Scottish Power has announced a strong annual profit recovery and put a cap on the dividend cut already flagged for the current year.

The company's shares were down 1.9% at 0800 GMT at 383 pence.

Pre-tax profit before goodwill and exceptional items grew to £835.8m in the year to March 2003 from £567m a year ago.