Rail freight could boost UK’s economy by £5.2bn annually by 2050

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Rail freight could boost UK’s economy by £5.2bn annually by 2050

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Channel Tunnel freight
Channel Tunnel freight // Credit: Rail Partners

A new report by suggests that a growing rail freight market if it is supported by the right policies, can deliver significant economic and environmental benefits between now and 2050.

Rail Partners is the trade body that brings together the five largest freight operators that between them move 99% of this country’s rail freight. The report titled “Freight expectations: How rail freight can support Britain’s economy and environment.” includes independent analysis by Aether, which is an Air Quality and Climate Change Emissions Consultancy, the University of Hull’s Logistics Institute, and Railfreight Consulting, that highlights how rail freight has an environmental advantage over the road haulage sector.

Rail freight – the backbone of the economy. // Credit: Rail Partners

The report also shows that if the rail freight sector was supported by the right policy , it could flourish and help to support a more prosperous and greener economy in the future.

When comparing today’s road and rail traffic, Aether concluded that a typical freight train produces 76% less CO2 per tonne than the equivalent movement by road. By operating longer and heavier freight trains, rail freight operators are significantly improving productivity and growing the rail freight market. Analysis shows how these innovative services ease road congestion, as each train removes up to 129 HGVs from the road network, while further enhancing rail freight’s carbon and air quality performance.

Railfreight 2
Rail freight – the future of Britain’s economy. // Credit: Rail Partners

If the Government were to set an ambitious target to treble rail freight by 2050, the sector would deliver a minimum of nearly £5.2bn in economic benefits. It would also support road decongestion and improve air quality, with a forecast that the sector needs to remove over 20 million HGV journeys annually.

To achieve the ambitious target of trebling freight, a largely private rail freight sector will be needed to work in partnership with the government. In order to grow and decarbonise the freight sector, freight operators and their customers will need to invest in new assets and infrastructure. So that freight operators have the confidence to make these investments, Rail Partners and its members have called for the government to deliver the following policy framework:

  • set an ambitious growth target of trebling rail freight by 2050;
  • maintain a stable access, charging, and performance regime;
  • make optimal use of existing capacity on the rail network;
  • target infrastructure investments in those areas of the network that have a high potential for growth in freight;
  • expand the incentives to make rail the mode of choice for freight customers.
Rail freight – leading Britain’s fight against climate change. // Credit: Rail Partners

Rail Partners’ chief executive, Andy Bagnall, said: “With the right support, rail freight can deliver for Britain – boosting the economy and reducing carbon emissions as well as improving air quality and reducing congestion, especially in cities.

“We welcome recent commitments to deliver rail reform and must now focus on the detail. Setting an ambitious rail freight growth target – underpinned by legislation – is critical to capturing the benefits that a vibrant rail freight sector can offer.”

Morwen Mands, Head of Sustainability at Highland Spring Group – who feature within one of the case studies in the report and recently made an investment in a new rail-connected facility – said: “Environmental sustainability has been at the heart of our business for over 40 years, and our new rail freight facility is a critical part of our commitment to tackling climate change and being a considerate neighbour to the local community.

“We believe the landmark project in Blackford is an excellent example of the power of partnership working between the rail industry, government and business which will provide wider benefits to the Scottish environment and economy. We hope this facility inspires other businesses to explore using rail freight to support their own journey to net zero.”

Welcoming the new analysis, CEO Andrea Rossi said it gave further weight to the company’s argument that ‘Freight Belongs on Rail.’

“We’ve spent the last two years lobbying politicians and civil servants of the significant economic and environmental benefits of rail freight over road haulage,” said Andrea.

“Freight Belongs On Rail. We know it. Our existing customers know it. The public knows it. We now need the UK Government to work with us to enable more of it to switch from road to rail.” he added.

“Setting a clear and ambitious target for rail freight growth, like already exists in Scotland, will give confidence in the sector, stimulate investment and unlock rail freight’s true potential.”

Andrea said the latest research, commissioned by Rail Partners, showed the size of the economic and environmental benefits was increasing all the time, with freight operating companies now able to run longer and heavier trains.

He said DB Cargo UK’s pioneering use of hydro-treated vegetable oil (HVO) to fuel its locomotive fleet was also helping to drive down carbon emissions even further.

“This latest research shows that a single freight train can now carry the equivalent of 129 HGVs. If you then run that train on HVO, as opposed to diesel, the reduction in carbon emissions is even greater!” added Andrea.

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