Freight strategy
Government‘s latest freight strategy focuses on skills, innovation, network capacity and freight promotion.
SKILLS, innovation, network capacity and “telling the story” of the sector form the backbone of the Government’s latest rail freight strategy, published on September 13.
The strategy points out that rail transported 17.8 billion tonne kilometres of freight in 201516 (a market share of 12% of freight surface transport), and that analysis by KPMG in 2015 calculated the benefits of rail freight to the UK economy at £1.6 billion per year.
The Department for Transport (DfT) says it will support the sector to identify new market opportunities through provision of information, and support Data 4 Freight - a new project that aims to develop a better understanding of UK freight movements.
It will also: ensure that rail freight is considered as part of work on options for wider deployment of biofuels; consider “how the current and future requirements of rail freight could be more systematically considered in the passenger franchising process”; continue to develop proposals on strategic capacity; and examine the potential for nodal yards.
In terms of “telling the story”, the DfT’s freight communication sub-group will transfer to the Rail Delivery Group (RDG), with the aim of better including the rail freight sector in pan-industry communications.
Although coal traffic is set to continue its decline, the DfT believes there is “strong growth potential” in bulk movements of core aggregates, reflecting new building developments and large infrastructure projects.
Ports and domestic intermodal traffic - as well as biomass - are reckoned to offer steady growth, automotive slow growth, and Channel Tunnel freight limited growth, but other sectors are expected to either remain static or decline. The DfT also says there is scope for the rail freight sector to “explore innovative new models” such as carrying parcels using spare capacity in off-peak passenger services, or converting old rolling stock to carry freight into cities. The Freight transport Association says it is “optimistic” that the strategy will incentivise the logistics sector and rail industry to work together on new intermodal models, to relieve pressure on the road network.
FTA Head of Rail Freight Policy Chris MacRae said: “The strategy highlights the environmental benefits of a greater modal shift from road to rail, and recognises the scope for rail and the wider freight industries to collaborate and explore innovative new models.
“However, rail freight is just one part of the logistics chain. It is vital that we maximise use of all modes of transport, including road and water, in order to make the UK’s supply chain as efficient, clean and safe as possible.”
Russell Mears, Freightliner European chief executive and chairman of the RDG’s freight group, added: “The strategy emphasises the importance of having a clear policy framework to support rail freight to achieve its potential. We recognise that it will be for the industry - including the rail freight operators - to deliver the vision, and we welcome the sense of direction that this strategy provides in helping the industry plan ahead.”
GB Railfreight Managing Director John Smith also welcomed the strategy’s publication, but warned that the sector needs to ensure investment is made and that decisions are taken to increase freight capacity and capability on the network.
“This report focuses on all the right things, highlighting areas where progress can and should be made,” he said.
“This includes strengthening strategic capacity for freight, reducing dwell times and improving velocity. As we move forward with Periodic Review 18 discussions, we need to ensure that these suggested actions are taken on-board and a more stable and competitive environment provided for freight.”