Lord Berkeley – Rail Freight Group
It is fair to say that 2011 was a strong year for the rail freight sector with a number of key projects being delivered, new services starting and continued growth, particularly in the intermodal sector.
Initial concerns over the potential outcomes of the McNulty Review have at least partly been addressed and the rail freight community is well engaged with the forward debate.
Network Rail’s move to devolve power to the regions appears, on the evidence to date, to consider the interests of freight operators and customers. It will be interesting to see how the Department for Transport’s policy emerges during 2012.
In April 2011 we saw the completion of two major rail freight projects – the gauge clearance work of the routes from Southampton, and the cross country route from Felixstowe. The freight operators lost no time in exploiting the enhanced capability with the first high gauge train from Felixstowe departing only hours after the final bridge was lifted into place. This was an exciting project and everyone involved should be warmly congratulated for their efforts. The impact of such schemes cannot be underestimated. The market share of rail freight from the port of Southampton is estimated to have increased by 7-8% since April and overall rail now has more than 25% of the market share in the movement of deep sea containers in the UK.
Elsewhere, we were delighted to see the launch of commercial services using the new Super Low 45 wagon, which enables high gauge containers to be carried on non-gauge cleared routes in a cost-effective way. The positive impact that such innovative designs have on the rail freight sector is huge. The service, which is operated by Direct Rail Services (DRS) from Teesport, is demonstrating not just how effective these new wagons can be, but is also making inroads into the potentially lucrative short sea container market, which has long been seen as too difficult for rail.
The first commercial services on High Speed 1 (HS1), operated by DB Schenker Rail, are continuing. The first service arrived in the early hours of 11th November last year and has been a huge deal for the sector, enabling continental size rail wagons and containers to reach East London; a truly historical achievement.
In October 2011, the Rail Freight Group (RFG) launched its updated rail freight forecasts, undertaken on our behalf by MDS Transmodal. The forecasts continue to show strong demand for intermodal growth, doubling by 2030. This was particularly the case on the key rail corridors and emphasises the need to unlock further investment in rail connected terminals for the growing interest from the retail sector.
It is little wonder then that the now published Initial Industry Plan (IIP) sets out ambitious plans for further investment in rail capacity and capability to serve the freight market. The Plan makes recommendations for investment, but also for making the best of what we have through longer trains, shorter journey times and the capability to run overnight and at weekends.
The Rail Freight Group (RFG) will be encouraging Department for Transport and Transport Scotland to give serious consideration to making this investment to deliver the economic and environmental benefits associated with rail freight growth.
Overall, there is growing positivity across the sector. Despite the obvious economic problems affecting the UK, rail freight has continued to show it is resilient and a freight modal choice for the future.
Lord Berkeley is Chairman of the Rail Freight Group. For further information visit: www.rfg.org.uk
Published: 03/01/2012
