Iarnród Éireann has confirmed that it is to cease operation of its FasTrack service from the 31 March.
FasTrack provides a same-day nationwide express service for parcels to over 60 stations on the rail network, including Northern Ireland.
An Iarnród Éireann spokeswoman said the new diesel multiple-unit trains cannot accommodate parcels.
She said the old locomotive trains had an empty carriage, that accommodated parcels whereas all the new trains only have passenger carriages.
The spokeswoman also said the current economic climate was a reason for withdrawing the service.
The 20 people who are employed in the FasTrack service will either be deployed within Iarnród Éireann or they can avail of a voluntary severance package.
