Call for increase in rail freight to help government achieve its missions

According to the latest research by [1], over the last decade, the cost of sending freight by rail has risen over three times faster than by road. Rail freight operators are keen to invest to help decarbonise the UK's supply chains. They see that a thriving rail freight sector will help the government achieve the missions it set out in its Plan for Change.

Independent research compiled by Rail Partners in its A Greener Track report shows that in the last ten years, the cost of moving goods by rail has risen three times faster than road.

A Greener Track. // Credit: Rail PartnersA Greener Track. // Credit: Rail Partners

Some cost increases have come from government policy, but market conditions are increasingly a challenge for rail freight operators, and a significant barrier to growth and decarbonisation of the transport sector. There is an opportunity for the government to use the upcoming legislative consultation on rail reform to secure rail freight growth by creating a more favourable environment for operators to boost investor confidence and drive modal shift. Rail freight transports millions of tonnes of goods and materials around the country every year, and every tonne of freight transported by rail freight produces 76% less CO2 than the equivalent transport by road.

Also, a single rail freight service can eliminate up to 129 HGV movements.

A GB Railfreight-intermodal train - GB RailfreightGB Railfreight intermodal train // Credit: GB Railfreight

To achieve a growth in rail freight, the widening differential in costs between road and rail freight costs must be addressed. The government is being asked to create the framework to build on its Labour's Getting Britain Moving document to champion rail freight growth by using the upcoming legislative consultation on rail reform and other policy measures. These must include retaining existing legal protections such as long-term access rights and a stable charging regime.

It has been shown that a thriving rail freight sector supports growth, and each year the UK economy benefits by GBP2.45bn from rail freight.

90% of those benefits are outside of London and the South East, with freight operators creating jobs throughout Britain, directly employing 6,500 people and many more in the wider logistics supply chain. More information on the policy proposals are contained in A Greener Track, which can be downloaded at railpartners.co.uk/GreenerTrack[2]

66781 waits to leave Ratcliffe Power Station66781 waits to leave Ratcliffe power station. // Credit GB Railfreight

Confirming their faith in using rail for freight transport, GB Railfreight recently agreed a four-year contract extension with Aggregate Industries[3] to transport aggregate materials, and Tesco and Direct Rail Services signed a contract for operating Tesco container trains until 2028[4].

"Rail freight is one of the lowest-carbon forms of land transport, but with rail costs rising three times faster than road, Britain increasingly risks losing out on the benefits the sector has to offer in terms of growth and supporting government's wider missions. Freight operating companies want to invest in the UK and work with government to make rail more competitive, to help decarbonise the transport sector and reduce congestion on roads.

But rail freight growth will not happen on its own.

Without measures to address the widening cost gap between rail and road, freight customers could be priced out of making the right decision for the environment and the economy."

Andy Bagnall, Rail Partners chief executive

References

  1. ^ (www.railadvent.co.uk)
  2. ^ railpartners.co.uk/GreenerTrack (railpartners.co.uk)
  3. ^ a four-year contract extension with Aggregate Industries (www.railadvent.co.uk)
  4. ^ operating Tesco container trains until 2028 (www.railadvent.co.uk)