UK: Ahead of consultation on the government’s rail reform bill, operating group association Rail Partners and its five freight members have published A Greener Track making four proposals to support growth.
The first is for the bill to include legal protections to maintain investor confidence in rail freight, including long-term access rights, a stable charging regime, enshrining the government’s growth target in primary legislation and a ‘more creative’ approach to charging which would incentivise more efficient use of assets.
The second proposal is to increase incentives to drive modal shift. This could include doubling the budget of the ‘hugely successful’ Mode Shift Revenue Support scheme designed to bridge the gap between road and rail costs, and introducing to England the Freight Facilities Grant to co-fund rail-connected facilities.
The third proposal is to create a level playing field between modes by ensuring that wider societal benefits are reflected in prices. A holistic view of taxation and charges could include reviewing the 15-year road fuel duty freeze.
The fourth proposal is to make more use of longer, heavier and more direct freight services, supported by infill electrification schemes including London Gateway and Ipswich – Felixstowe and prioritising projects to address capacity challenges on the East Coast and West Coast main lines and from key ports.
A Greener Track was commissioned from Steer and published on January 22. It says the cost of rail freight has risen over three times faster than road haulage over the last decade, including a 26% real terms increase in track access charges since 2015, and the market has become increasingly challenging for rail freight operators.
Rail Partners Chief Executive Andy Bagnall said ‘freight operating companies want to invest in the UK and work with government to make rail more competitive, to help decarbonise the transport sector and reduce congestion on roads. But rail freight growth will not happen on its own. Without measures to address the widening cost gap between rail and road, freight customers could be priced out of making the right decision for the environment and the economy.’
