Implications of suspension of rail freight grants by Strategic Rail Authority

14th March 2003

Freight on Rail, a partnership between the rail freight industry, the transport trade unions and Transport 2000, is campaigning for the full reinstatement of Strategic Rail Authority (SRA) funding for rail freight grants and has issued a parliamentary briefing urging politicians to lobby the Department of Transport and the SRA on this subject.

Freight on Rail’s research into the transport, social and environmental implications of the suspension of rail freight grants highlights rail freight’s role in reducing road congestion, reducing noxious emissions and reducing deaths and injuries on the road network.

Freight on Rail campaigner, Philippa Edmunds said “ We believe that this grant suspension is short sighted. Both the public and private sectors have called for the SRA to reverse its decision which ignores the importance of the grants to local government, business and the wider freight industry. We need a definite date for reinstatement of the grants to restore confidence in the industry, protect the environment, avoid many unnecessary deaths on the roads and control road congestion.”

She added that, “ Many potential rail freight users have pressing investment decisions to make and cannot wait long for the SRA to reinstate grants. A clear statement from the SRA is urgently needed.”

Forecasting based on the last year in which a full set of freight facilities and track access grants was made in 2001/02, show the breakdown of the economic, environmental and social benefits of rail freight which are being denied to society by this suspension:-
· 435 million lorry miles saved (based on SRA data)

240,000 tonnes of atmospheric pollutants saved ( National Emissions database)
£118m in cost to society of the above pollution avoided (EU Externe studies)
£10.8m in cost to society of road accidents avoided (Leeds University Institute of Transport Studies and NERA)
£18.5m in cost to society of noise avoided (Leeds and NERA as above)

These SRA figures, calculated over the life of the flows between 5 and 10 years, reflect grant awards that would have been made in 2003/4 had it not suspended the regime. Whilst grant expenditure on already authorised grants will continue in 2003/04, no more new grant awards are being made, with no definite date for resumption, causing industry to reconsider its use of rail and question the Government’s commitment to rail freight.

The two following examples of recent grant awards illustrate the value of joint public and private sector funding through freight facilities grants (FFGs) which are the only Government capital support given to rail freight. FFGs lever in significant outside investment: for every pound of grant, on average over 70 pence is provided by the companies involved. DFDS has been awarded £382,480 which it will match with £300,520 of its own funding for facilities at Immingham. These facilities will keep 25,500 lorry journeys, equivalent to over 3 million lorry-kilometres, from the roads. The Malcolm Group and ASDA have together been awarded £715,291 which they will match with a total of £457,317 of their own funding for terminal facilities at Daventry, which will keep over 20,000 lorry journey, equivalent to over 12 million lorry-kilometres, from the roads.

Opposition to this suspension is widespread as the list below shows

Local Government Association
Association of Transport Operating Officers London Sustainable Distribution Partnership
Local Government Channel Tunnel Initiative
Public Transport Consortium
The Confederation of British Industry
The Freight Transport Association
Quarry Products Association
The Aggregates Industries group.
Ends

Notes to editors:

Freight on Rail is a partnership between transport trades unions, ASLEF, RMT and TSSA, the rail freight operators EWS, Freightliner and GB Railfreight, the Rail Freight Group and Transport 2000. 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. In particular, it aims to help local authorities through all stages of the process such as planning a rail-freight strategy, accessing grants and dealing with technical matters.

International Union of Railways research in 2000 showed that road transport has four times higher external costs, excluding congestion, than rail which means that society at large will be footing the bill for the extra costs to the health service caused by pollution and accidents.

Nearly 40% of CO2 emissions from road transport came from buses and lorries though only representing 12% of vehicles on the road, (of which buses would represent about 3%). Motorists' Forum 2000

For further information and a copy of the briefing contact:-

Philippa Edmunds, Freight on Rail campaigner

Tel: 0208 241 9982: email philippa@freightonrail.org.uk;
web site www.freightonrail.org.uk