Freight on Rail response to the Transport Select Committee Inquiry
Prioritising investment in Rail

TSC questions in bold italics

Freight on Rail definition
Freight on Rail  is a campaign working to get goods off roads and onto rail as an important step in developing a more sustainable distribution system.
Freight on Rail  is a partnership between transport trades unions, freight operating companies, the Rail Freight Group and Campaign for Better Transport.  It works to promote the economic, social and environmental benefits of rail freight both nationally and locally. It advocates policy changes that support the shift to rail and provides information and help on freight related issues to central, regional and local government.

1. In the medium to long term, what should be the main objectives for investment in the railways, in order to improve both freight and passenger services?

Rail freight provides a low carbon, energy efficient, safe alternative to road distribution which not only helps the Government achieve its carbon reductions targets but also reduces road congestion and exposure to road accidents.

A report published by the Institution of Mechanical Engineers in early 2009, states “ as an option for the reduction of carbon emissions, the rail freight sector is leagues ahead of all the other options available. The target should therefore be to deliver far greater levels of growth in the rail freight sector than are currently projected”

There is suppressed demand for rail freight because of limitations of rail network. Government forecasts show that container traffic will grow by 17% by 2030. Therefore it is crucial that the rail freight network is enhanced so that rail can play its full role in servicing the low carbon economy.

Main priorities for rail freight are as follows:

Support for the Strategic Freight Network Vision (SFN)
In June 2009 the DfT published the Strategic Freight Network – The longer Term Vision which states what is needed to increase rail freight volumes. Investment of £220m has already been committed between 2009 and 2014 to commence the development of the SFN which is crucial in attracting third party funding. However, this investment is modest compared to the high cost of upgrading motorways and needs to be continued from 2014 onwards in order to realise the full benefits of the SFN.

Continued investment needed in SFN from 2014 onwards
Continued funding in (Network Rail Control Period 5) would enable more gauge clearance and capacity enhancements of key SFN routes is crucial if rail freight is to play its role in the low carbon economy. No commitment has not been forthcoming, so far. A priority example being the capacity upgrades needed on the Felixstowe-Nuneaton route which would mean that 40 million lorry miles each year could be removed from the route. See section 7 for detailed schemes.

The key principles behind the SFN longer term vision are

1. A network for gauge cleared routes for higher containers for deep sea, refrigerated and container and european swap bodies to provide a reliable robust network with diversionary routes.
2. Longer and heavier freight trains allowing for 750m long trains to operate as standard on certain routes.
3. Electrification of freight routes especially small infill schemes linking existing electrified routes and lines with heavy long-distance freight usage. An example of which is the Gospel Oak to Barking scheme which would have passenger and freight benefits, see section 7A for full details
4. European Freight Link which builds on the use of High Speed 1 by mainland European high capacity wagons by enhancing the network to enable them to reach the Midlands potentially via the electrified Midland Main Line.
5. Seven day railway
   Rail freight needs to operate 24 hours a day, 7 days a week like road freight does. For example the supermarket trade wants and deserves 24/7 access to the railway.
6. Additional freight capacity on key arterial routes or those that avoid major conurbations
7. Land use planning policy needed which allows new interchanges to be build, ranging from the large Strategic Rail Freight Interchanges (SRF1s) to medium and small terminals
   Rail freight needs national regional and local spatial planning policies which both support rail freight by protecting key rail transport corridors/key sites for interchanges and enables planning permission to be gained for terminals/interchanges. Without terminals rail freight volumes cannot grow.

Supportive land use planning framework for rail freight is within the gift Government 
This is where Government can provide a land use planning framework which supports rail freight without needing to give any actual funding.   

National Policy Statements need to cater for rail freight and state that regional depots should be capable of being accessed by rail.

The Independent Planning Commission (IPC) introduced by the Planning Act (2008) should make it easier to get planning permissions for large SRFIs for which the threshold is 60 hectares. However, the majority of terminals/interchanges fall outside the remit of the IPC because they are under 60 hectares and rely on regional and local spatial plans supporting rail freight for local planning authorities granting them planning  permission. Unless there is national, regional and local policies supporting rail freight terminals, it is difficult for councillors to vote in favour of terminals which have wider regional and national social and environmental benefits but have local disadvantages, such as more HGV traffic.

Need to press for regional spatial planning to be preserved
Regional strategies are being revised but will retain their statutory status  and set the regional framework and context for rail freight and also set the policy context for local authorities to follow in Local Development Frameworks (LDFs) and Local Transport Plans.

The following policies are also crucial for rail freight

Retention of Sustainable Distribution Fund
Grants are an important mechanism to promote sustainable freight distribution which   compensate for inequalities in the freight market given that road and air do not internalise all their external costs.

Revenue grants
Current environmental benefits schemes (grants) buy environmental, congestion and safety benefits by paying a subsidy to move a container by rail instead of road where rail is unable to compete with road on price.  Without these grants, trainloads of rail freight would be forced back on to the congested road network.

Mode Shift Revenue Support (MSRS) will replace existing Rail Environmental Benefit Procurement Scheme (REPS) from 2010. However, the budget has not been confirmed beyond March 2011, because of delays to the Comprehensive Spending Review, even though all rates and approval has been given for 5 years. Action needs to be taken to ensure that the budget is confirmed beyond 2011 at or above current levels to support growth. Without this rail flows and jobs will be lost and freight forced back onto congested roads.

Capital grants - Freight Facility Grants (FFGs) need to be revised

FFGS are an important mechanism to offset the initial start up costs of the transfer to rail.
Uptake of the existing budget has been poor for various reasons. These include the risk of having to pay back grant if environmental benefits are not delivered, 50% maximum contribution, poor promotion by the DfT and slow down in growth in bulk sector. Some grants have been turned down for reasons of competition between terminals.

FFG needs to be reworked in line with rail freight forecasts to cater for growth in domestic inter modal, international and deep sea traffic.
They also need to be aligned with Government policy on SFN to complement planned network enhancements and align grants with National Policy Statements and Strategic Rail Freight Interchanges (SRFIs) taking into account third party traffic.

Stable track access charges
This will enable freight operators and customers to plan longer term and result in longer term contracts being agreed.
 

2. How should these objectives be determined?
Appraisal system needs to take into account all external costs and congestion costs of all freight modes.

A lorry user charging system could address the issues about foreign lorries contributing to their external costs imposed on the UK.   

3. What is the impact of rail enhancements on the economy?
To evaluate the benefits of rail enhancements you can study examples of its existing role in the economy

1. A quarter of all containerised goods imported to the UK move br rail, including clother, food toys etc. Shippers are calling for more trains out of Felixstowe where rail has 24% of the market. The planned enhancements, only part of which has been funded could take rail’s share to between 35%-40% and remove 40 million lorry miles each year from the route along the A14.
2. Britain’s fastest freight train moves letters at 100mph
3. Rail freight’s heaviest train is 4000 tonnes equal to 160 lorries
4. Rail freight keeps the lights on by moving 35% of the fuel used to make electricity
5. Rail freight’s impact on regional and local economy

The  value of  logistics jobs
Dispatch clerks, warehouse pickers	£300 pw
HGV/truck operatives	£350 pw
Supervisory	£400 pw
Call centre operators	£278 pw
Main logistics positions needs skills including IT
Source Midlands Logistics Study MDS Transmodal Regeneris 2005

Changes in employment and industry patterns show that warehousing (B8) can offer as many jobs as manufacturing (B2) and in some cases create more jobs than modern manufacturing or modern offices (B1c). TfL stated that the cross section of B8 related jobs can play an important community role as “warehousing and logistics also have the potential to contribute to social inclusion by providing a range of employment opportunities at different skills levels and typically within or close to areas of relative deprivation”

Jobs at terminals/ interchanges
	Direct	Indirect	Size (HA)
DIRFT  existing	2595		180
Howbury Park proposed	2670	2668	67
Port Salford Proposed	1950	195	116
Trafford proposed	4981	2105	136
Parkside proposed	7000	1000	147
Radlett    proposed	3257		100
Teesport	2000	3000

Data compiled by Intermodality for the Railfreight Interchange Investment Group

It is estimated that rail freight operators employ around 7,200 staff directly with other staff employed by Network Rail, at ports and terminals and other suppliers.
 
4. How should long-term development of major new infrastructure, such as high speed lines, be balanced against short and medium term investment to improve capacity and passenger experiences?  

Development of major new infrastructure such as high speed lines should not take any resources and investment away from Strategic Rail Freight Network.
High speed passenger lines can free up existing capacity for freight services.

5. Is enough consideration given to the integration of rail with other transport modes, and with demographic developments, such as new housing developments, when rail investment decisions are made?
It is crucial that transport planning is integrated into land use planning so that new developments are environmentally sustainable with passenger and freight services available where appropriate.

In the case of the Thames Gateway  development, it is crucial that there are sufficient capacity upgrades  to key routes to London and north to cater for the new port redevelopment.  

6. Not applicable for freight

7. What should be the key priorities for the next High Level Output Statement?

1. Gospel Oak - Barking electrification
   Reinstatement of Gospel Oak to Barking rail electrification, remains a priority project with a good business case for passenger and freight services. Benefits of scheme include elimination of some North Thameside freight services crossing the Great Eastern Main Line between Forest Gate and Stratford. This would improve infrastructure capacity and and Crossrail as well as providing a diversionary route across North London for electrically hauled freight.
2. Felixstowe to Nuneaton outstanding capacity work which is not part of the committed CP4 work  
3. Capacity and route clearance for big the freight railway provision for European gauge trains beyond Barking towards the main distribution centres of the Midlands and the North
4. Outstanding additional work on the NG/GE Joint line
5. Southampton to WM capacity upgrades
   SWWL Basingstoke to Action Wells Jct via Kew gauge clearance
6. GWWL Reading to WCML South     
7. Transpenine h)Buxton line capacity and line speed improvements which would help freight access to Peak Forrest area via Buxton
8. Round Oak to Walsall re-opening capacity which would help freight train length by avoiding the Lickey incline.
9. Redhill remodelling could help Tonbridge Redhill Reading freight route
10. General fund for train lengthening
    General fund for gauge and studies
    
    

8. Is the current investment programme sufficient for the needs of the UK economy and for passengers themselves?
If freight transport is to reduce its carbon footprint it is crucial that the SFN is developed so that rail freight’s low carbon benefits can be realised.

Support for rail freight during the recession which furthers carbon reductions
Linking Government support for industries to sustainable distribution modes
Many of the businesses seeking Government support, such as the motor industry, could by using rail reduce their carbon emissions and increase their efficiency. We are therefore asking that the Government investigates the opportunities to support the rail freight industry by linking any Government support for industry to the use of rail freight, where appropriate.

9. In light of the current economic crisis is it still important that projects designed to increase capacity continue on the present timescale?
Yes because rail can help the Government to meet its climate change emissions targets as part of a low carbon economy.

Rail freight’s environmental, social and economic benefits
Rail freight provides a low carbon, energy efficient, safe alternative to road distribution which can help the Government achieve its carbon reductions targets.

Using rail freight produces 3.4 times less CO2 per tonne-km than road transport which means that switching to rail freight delivers a 70% reduction in CO2 emissions compared to the equivalent road journey. Source DFT Logistics Perspective Dec 2008

Safety
In most circumstances the transport of freight is safer by rail than by road, due to lack of proper enforcement of drivers’ hours, vehicle overloading and differing foreign operating standards.

Rail freight reduces road congestion as an average container train can remove  50 long distance HGVs and rail freight’s heaviest bulk cargo trains are equal to 160 HGVs. Source Network Rail.
The Dft estimate that  the cost of congestion is up to £1 per lorry miles on the most congested roads.
Rail cannot replace road journeys completely as there is still a need to move goods to and from rail hubs but it can reduce the need for long distance road haulage.
 
 
Philippa Edmunds   18th September 2009