Construction offers fresh opportunities for rail freight

Rail freight can secure new contracts in the construction sector, as the market seeks to replace business lost by the dramatic decline in coal ( RAIL 791).

Rail Freight Group Executive Director Maggie Simpson told RAIL on January 14: “In terms of future growth, intermodal and retail are critical, and there is also growth to be had in construction, automotive and other sectors.”

Simpson was speaking the day after Tarmac announced contract wins for four of the five major rail freight operators.

Colas Rail, DB Schenker, Freightliner Heavy Haul and GB Railfreight have all been successful in tendering for work with the construction giant, with the contracts lasting for five years.

Rail typically moves nine million tonnes of product for Tarmac per year, and the company is looking to expand its rail freight operations. It is creating new strategic hubs that it says will expand a nationwide supply into key construction markets.

The company added that by increasing its rail freight capability, the whole life carbon footprint of customer projects is reduced. Tarmac plans to reduce its transport CO2 levels by 10% per tonne in the next four years.

“An enhanced rail freight network supports our strategic growth plans,” said Tarmac Chief Executive Cyrille Ragoucy.

Under the agreement, Colas Rail will operate trains from Dunbar cement works, GBRf has won the right to haul trains from Swinden, Thrislington and Dry Rigg quarries, FLHH will serve the Tunstead site in Derbyshire, and DB will haul trains from Mountsorrel Quarry as well as Tarmac’s aggregates business in the West (depots at Moreton on Lugg, Whatley and Port Talbot) and London. Trains have already begun operating.