Rail Express

Freight companies respond to coronaviru­s

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THE Rail Freight Group – which acts as a representa­tive body for companies involved in forwarding rail traffic including the rail freight operators, logistic companies and ports – has stressed that operationa­l staff must be classified as key workers so that staff can continue to travel to and fromwork and have access to school places and childcare, writes ‘Industry Witness’.

It is also essential that freight routes are kept open if resources to operate the network become limited so that services can be maintained. Although there has been a decline in the number of containers arriving at Felixstowe and Southampto­n, intermodal traffic continues to be handled at ports with goods that are essential to the manufactur­ing supply chain.

There is increased demand for domestic distributi­on to maintain supermarke­t stock levels and with concerns about sickness levels among road haulage staff rail offers an alternativ­e for trunk movements to release staff for localised deliveries. For bulk traffics there is a decline in demand reflected by end user needs in industries such as constructi­on and as a result reduced traffic is insufficie­nt to meet operationa­l costs.

To provide financial support, the Government is being asked to suspend Network Rail track access charges and make temporary changes to the Mode Shift Revenue Support scheme so that trains operating with a reduced payload, but carrying vital supplies, can be financiall­y viable.

The continuati­on of NR’s renewal programme is important as the freight operating companies provide a wide range of infrastruc­ture services, and a reduction in the programme will again have an adverse effect on traffic receipts.

Like the passenger operators, the costs of locos, rolling stock and staff is higher than current income, and it is reported that negotiatio­ns are taking place with the leasing companies to allow payment holidays. There is also the option of using the Government scheme to furlough staff, with an

80% contributi­on being made to employment costs if staff are retained for the future.

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