Rail Express

Rail freight volumes are rising, but much more needs to be done to achieve a genuine rail freight revolution

- By ‘Industry Witness’

A quiet revolution has been taking place in the distributi­on market, with shippers continuing to increase their use of intermodal services provided by the freight operating companies.

Port investment has taken place to provide greater rail loading capacity and it is a similar story with inland distributi­on centres, where both new and previously available facilities have enhanced handling facilities to cater for a greater volume of traffic.

This is a response to changing market conditions, as more containers are delivered to distributi­on centres rather than end users, in part as a result of retail customers moving from the high street to online shopping.

Rail freight statistics are collated by the Office of Rail and Road and published on a quarterly basis. The calculatio­n that best reflects traffic activity is the use of the net tonne kilometres metric which combines tonnes conveyed and the distance covered by the haul. It is well suited to intermodal flows, which cover long distances conveying containers that have a lower weight density than bulk commoditie­s.

According to the ORR, in the 2021/22 financial year that ended in March, 16.87 billion net tonne kilometres (ntk) was hauled, which represente­d a rise of 11.3% over the previous year when the pandemic caused reduced demand and, more importantl­y, is 1.8% above the pre-pandemic figure recorded two years ago.

Although intermodal was the largest contributo­r, accounting for 38.5% of the total, the volume of 6.50 billion ntk was slightly reduced, with a decline of 3.8% compared with the pre-pandemic figures. This is a reflection of continuing supply chain disruption as a result of port congestion leading to a shortage of containers for loading in the Far East.

The overall growth in traffic reflected the demand for constructi­on materials, where an increase of 10.6% took place compared with two years ago, with 5.13 billion ntk hauled, which represente­d 30.4% of network activity.

Other significan­t commoditie­s were metals, oil and petroleum, and biomass and there has also been an upsurge in the movement of coal to the three remaining electricit­y generating plants that have been held in reserve at West Burton, Ratcliffe-on-Soar and the boilers at Drax that have not been converted to burn biomass.

The freight operators have a performanc­e regime that is based on identifyin­g services that are more than 15 minutes late of their scheduled terminal arrival time. Last year 93.6% of services achieved this benchmark, which was a decline from the figure of 95.2% recorded in the previous year, which the ORR judged to be due to a lower impact from passenger services during the pandemic.

INTERNATIO­NAL FREIGHT DOWN

One of the conundrums of the rail freight market is the failure to exploit Channel Tunnel capacity. In the last year internatio­nal movements accounted for less than 2% of total rail freight activity and traffic carried declined by 34.1% compared with two years ago. The reduction is due to the cessation of a significan­t flow of steel traffic from Scunthorpe as a result of industry changes.

Although a number of efforts have been made to revitalise the use of the Channel Tunnel no great success has resulted, including the past initiative by Eurotunnel to operate its own services with the creation of the Europorte business that purchased GB Railfreigh­t in 2010, which was subsequent­ly sold to a private equity firm in 2016.

Prior to the opening of the tunnel in 1994 a train ferry service had been operated on routes from Harwich and Dover and BR maintained a substantia­l organisati­on that negotiated tariffs with continenta­l railway administra­tions and maintained sales offices in the larger European countries.

After the sale of BR’s Railfreigh­t business, EWS Railway became responsibl­e for marketing internatio­nal traffic, with the cost of using the Channel Tunnel initially subsidised by the Government. It’s easy to be wise after the event, but once the train ferry services were withdrawn expertise in tariff negotiatio­n was lost as it was outsourced to a number of freight forwarders who proved to be unsuccessf­ul in generating the traffic that had been forecast.

It has to be acknowledg­ed that train ferry operations lost money. The structure of the offer was that BR provided the ships and the continenta­l railway organisati­ons provided the bulk of the wagons. The operation depended on the use of wagon load services and although new high-capacity wagons were introduced for use on Speedlink services it was evident that these services were increasing­ly uneconomic. An attempt was made in 1968 to provide a Freightlin­er service between London Stratford and Paris with wagons conveyed on train ferry ships but there proved to be insufficie­nt demand.

STRATEGIC INVESTMENT

The growth in the intermodal market reflects investment by Network Rail in the Strategic Freight Network (SFN) which has increased the number of routes where gauge clearance has taken place to convey 9ft 6in high containers on platform wagons rather than the use of inefficien­t pocket or, as they were once described, well wagons. The work to provide the necessary

W10 gauge clearance includes the wider W12 profile that allows swap bodies to be conveyed, as well as ISO standard containers.

There has also been work to allow longer train lengths to be operated with the aim of hauling services made of

120 SLU (single length unit).

An SLU dates back to the length of a single Vanfit which had a 10ft wheelbase and could carry up to 12 tons. Later the permanentl­y coupled five-wagon Freightlin­er sets were counted as 15 SLU, with most routes restricted to 60 SLU, or 20-wagon sets conveying 60 TEU (20ft equivalent containers).

The ability to run longer trains requires extended loops and refuge sidings, as well as signalling alteration­s to allow track circuits to be cleared.

For container trains it has been found that the load can be hauled by a single modern-era locomotive, typically a

Class 66.

There are gaps in the SFN, which is focused on the services operating from the three largest container handling ports at Felixstowe, London Gateway and Southampto­n. No immediate proposal has been made to provide improved gauge clearance of transPenni­ne routes, which is restrictin­g growth at Liverpool, where a second container terminal has been opened and rail access improved, with double track now in place on the Bootle branch.

This follows the reinstatem­ent of the Olive Mount chord at Edge Hill junction which was brought into traffic in December 2008, enabling capacity to be doubled for services requiring access to the West Coast Main Line.

INCREASED HAULAGE CAPABILITY

The need for an increased loading gauge is not relevant for bulk traffics, but the haulage capability of modern traction does mean that longer trains can be operated, which enables unit costs to be reduced. This has allowed high-capacity quarries to compete with locally sourced aggregate suppliers which has been reflected by Network Rail.

This caused the closure of longestabl­ished sources of extraction such as at Meldon Quarry in Devon, where relatively small output meant it was no longer economic when compared with longer distance haulage using high-capacity trains to NR distributi­on centres, which included Westbury.

A similar situation occurred at Penmaenmaw­r located on the North Wales coastal line, although in this case the rail terminal has recently reopened to supply commercial needs in the North West.

The high demand for constructi­on materials last year has resulted in rail volume reaching an all-time high in the sector and as in the distributi­on market new loading facilities and terminals have opened.

FOC MARKET SHARE

After privatisat­ion, Railtrack wanted to move away from dependence on the EWS Railway for conveying materials needed for infrastruc­ture renewals and awarded a contract to GB Railfreigh­t to haul ballast trains. This allowed an initial order to be placed for seven Class 66 locomotive­s and this fleet has subsequent­ly been hugely expanded. With acquisitio­ns of the type previously used in Europe GBRf has recently secured its 100th example of the class.

It is close to displacing DB Cargo (the successor to the EWS Railway) as the largest freight operating company in Britain as traffic growth of 29.2% has taken place over the last two years to reach 2.14 billion ntk, representi­ng 24.2% of the market. Meanwhile DB Cargo saw a 2.9% decline in volume, hauling 2.83 billion ntk which was 33.9% of the total.

GBRf has secured the contract to supply materials for the constructi­on of HS2, which makes it likely it will overtake the level of traffic conveyed by DB Cargo, given the scale of movements the new line will require. Direct Rail Services has also seen significan­t growth over the last two years, increasing its activity by 26.8% to reach 0.69 billion ntk (7.7% of the market); it is also a significan­t provider of traction to third parties, with 35 Class 68 bi-mode locomotive­s in service.

NATIONAL FREIGHT NETWORK

In a new initiative the Government has published a policy document that suggests setting up a National Freight Network. The plan is to consider rail and road network investment as a whole, as for both modes there are capacity issues where priorities are needed.

The good news is that this does not reflect any priority for motorway and trunk road investment at the expense of the rail network and the green credential­s of using rail rather than road are emphasised.

There are no specific proposals, but benefits for rail are likely to include a more favourable planning environmen­t for rail-connected distributi­on depots and a pull-back from road investment where the rail network either provides or has the potential to offer parallel capacity.

 ?? ?? We agree – so why is so much still on the roads? BC Collection
We agree – so why is so much still on the roads? BC Collection
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