ABOUT 45 railway jobs in the North-East are under threat after Royal Mail announced it may withdraw its rail distribution network.

The company has revealed plans to abandon a rail-based system in favour of an air and road network, which could be in place by March next year.

Royal Mail said it had failed to reach agreement with rail freight supplier English Welsh and Scottish (EWS) to include rail in the system because the cost was too high.

About 45 EWS workers at the North-East travelling post office in Newcastle could lose their jobs under the shake-up.

Jobs at the site are largely made up of drivers, warehouse, ground staff and administration workers.

A spokesman for EWS said: "We have informed the staff of the situation.

"We will be providing them with information and keeping them involved in the process, both locally and nationally.

"Staff working last night as they loaded Royal Mail trains will have been wondering about their long-term future."

EWS said that by withdrawing the network, it would lead to increased road congestion and pollution.

Royal Mail said it had no alternative but to move forward with a restructure based on a road and air network only.

Paul Bateson, Royal Mail's logistics managing director, said: "There is a marked difference between the price we believe we should be paying for rail services and that which was on the table.

"Other forms of transport can give us the same benefits, in terms of flexibility and quality, but at a lower cost."