New Teesport Service Drives Benefits for IKEA

136 July 2019 NEWS www.rfg.org.uk Helping ensure a sustainable future for UK rail freight New Teesport service drives benefits for IKEA Dedicated twice-daily rail service will remove P.3 120 road movements from the motorways Southampton ready PD Ports has launched a dedicated rail ton – Teesport and returning from Teesport for longer trains freight service between Teesport and – Yarm – Doncaster. Doncaster, in partnership with GB Rail- freight (GBRf), for its major customer The end customer, IKEA Transport & Logis- Containerships. tics Services has high expectations of the supply chain’s performance. PD said that the new service “is responding to the growing demand for Teesport as the Elisabeth Munck af Rosenschöld, Head of Northern UK gateway for trade”, which con- Sustainability, IKEA Transport & Logistics tinues to see year-on-year growth across Services, said: “Delivery accuracy is of key its container platform. The twice-daily importance. At the same time, we have a rail service removes some 120 daily lorry very ambitious decarbonising agenda and movements from the UK road network – a actively seek to reduce our environmental journey of 90 miles each way per vehicle. In impact wherever possible. To shift from P.8 this way also reducing CO2 emissions and trucks to trains is one way of reducing the RFG and UIRR help increasing sustainability, which was one of number of shipments and fuel used per promote combined the major strategic targets for the customer. shipment.” transport

Containerships’ confidence in PD Ports’ Jari Lepistö, Chief Commercial Officer at capability to deliver a reliable service to Containerships, added: “Reliability and its end customer was cemented during a sustainability are core values for Contain- four-week trial period in spring. The service erships and its customers. We were looking now carries 56 boxes per day in two trips, for reliable outward journey from Doncaster - Darling- Continued on page 2. Rail sector welcomes a host of new services: P.9 Rail Freight Pavilion is a real success at Multimodal Show

P5. Tilbury-Grangemouth P6. Felixstowe-Doncaster

P.10 Maritime Transport opens new rail- connected Tilbury DC

P1. Teesport-Doncaster P11. Westbury to Southampton RFG News July 2019

Executive Director’s Update: Maggie Simpson email your comments to [email protected] Multimodal equally busy with enquiries. Alongside, there was a rush of good news about new provides services. We were delighted that PD Ports and GBRail- freight chose our meeting to announce the launch of positive their new services for Containerships and Ikea, running between the port and iPort in Doncaster. This service is backdrop for achieving a twice daily round trip with the same set and is proving viable even over a journey of less than 100 miles. freight growth It is a real testimony to all those involved and particularly By Maggie Simpson, Director General, the train planners at GB Railfreight that this service is now Rail Freight Group (RFG) contracted, and we wish it every success. The service is also the fourth train into the new terminal at iPort, which The last few months have not perhaps been the most only opened last September; a truly remarkable uptake uplifting of times. The delayed summer hasn’t helped, from the industry in such a short time. (although as I write this in our very humid London office it seems like it may at last be thinking of appear- In parallel, Eddie Stobart and Forth Ports announced the ing), and the political backdrop is at best unsettling. launch of their new service, linking the ports of Tilbury and Closer to home the Williams Review team still work- Grangemouth, hauled by Direct Rail Services. Again, it ing towards their conclusions, and Network Rail’s is rewarding the port operators working with partners to own restructure going live (see page 3). And there support these trains, demonstrating just how valuable rail are ongoing issues with access charges on HS1, the connectivity is to port customers. transfer of the Valley Lines to Transport for Wales and capacity challenges across the network. And not to be outdone, ABP Southampton and RFG member Solent Stevedores also announced the comple- The perfect antidote to all this was a week at Multimodal, tion of a project to significantly increase the capacity and where RFG was delighted to join many of its members throughput of their rail terminal (page 3), which allows two exhibiting on our Rail Freight Pavilion, and where we were trains to be handled simultaneously. pleased to host our Summer Group Meeting (see report on page 7). Multimodal brings together businesses from Of course, there are always those who prefer the down- across the freight sector, be they ports, road haulage, rail, side, or who remain fixated by the problems within the air freight or support services, and there is a real focus ‘railway bubble’. We have to work to fix those issues, but on business, with those attending looking to make new at the same time we all need to be really proud of what connections and understand more of the sector. I was our sector is achieving both in delivery and in encouraging delighted to speak on a couple of panel sessions, along new customers to benefit from what we have to offer. with colleagues from the Freight Transport Association, Road Haulage Association, UK Warehousing Associa- There are more positive stories throughout this newslet- tion and British Ports Association showing that we are all ter, and I hope you enjoy reading about them all. In the working collaboratively to drive freight forwards in the best meantime, do get in touch with me, or any of the RFG interests of our members. team, if we can help on any rail freight matters, or if you are interested in membership.• The most encouraging part for me though was to see the strong interest in using rail freight from companies If you haven’t booked your table for our RFG Awards attending the show. We helped a number of people make Dinner yet, please contact Phillippa O’Shea at introductions and provided information and materials to [email protected] as they are going fast. further inform their planning, and I know that others were

Continued from front page. reflecting not only the trust and con- testament to the fantastic teamwork fidence customers have in our ability involved in the whole partnership. partners to move large amounts of to deliver reliable services but also in We look forward to a strong, ongoing cargo with increased volumes coming our capacity to offer frequency and relationship.” from the Baltics in a sustainable way. flexibility, which is vital to their supply We needed an effective daily plan to chain.” John Smith, Managing Director of GB move containers to Doncaster when Railfreight concluded by saying: “This satisfying one of our major customers PD Ports’ Key Accounts & Rail Devel- new intermodal service underlines IKEA Transport & Logistics Services’ opment Manager, Patti Burt, added: the growing importance of rail freight environmental targets.” “We’re delighted to be working with in meeting the supply chain needs one of our longest serving customers, of leading global businesses. Rail Geoff Lippitt, Group Business Devel- Containerships and GB Railfreight in freight offers the certainty and reliabil- opment Director at PD Ports, went creating a solution that not only deliv- ity required to support complex sup- on to say: “Rail is at the forefront of ers exceptional and reliable service, ply chains. At a time when business is our agenda at Teesport, providing but which offers considerable eco- under increasing pressure to improve vital UK connections for our custom- nomic benefits. their sustainability credentials, rail ers and delivering significant environ- has the advantage of being signifi- mental and cost-saving benefits. We “During the trial we have proven the cantly more environmentally friendly continue to see consistent growth in concept; the operational capability than road transport.” • our container volumes at the port, works at both terminals which is a 2 RFG News July 2019

Network Rail announces devolved News in brief restructure to put passengers first • GB Railfreight (GBRf) Network Rail has announced and Northern Programmes strengthen, rather than dilute, has secured a lease for a regional restructure, have also transferred into the the voice of freight and nation- the long-disused March as part of its promise to new regions, alongside some al passenger operators across Up Yard rail sidings com- deliver benefits for both elements of System Operator. the network as a whole... The plex in Cambridgeshire. passengers and freight. organisational changes have The site is just over three Freight and National Passen- been designed following the acres in size and will Five new regions will take ger Operators (FNPO) is now listening programme where we accommodate trains of responsibility for the local part of a new Network Servic- met with thousands of people, up to 320m in length. It operation, maintenance, es Directorate, which will be both internally and external- will operate in conjunc- renewal and upgrades. These led by Nick King, who joins NR ly, to find out what was work- tion with the Down Yard, are: Southern, Eastern, North from Queensland Rail in Aus- ing, and what wasn’t. What south of the main line, West & Central,Wales & West- tralia, from 15 July. Until then, we heard time and again was which GBRf already works ern and Scotland’s Railway. Paul McMahon will be heading that we, Network Rail, had lost from. The site will initially The existing eight routes have up Network Services. focus on the end-users of the be utilised for the stabling transferred into the relevant railway, that we can be difficult and maintenance of rolling regions, while teams from In a letter, he said: “These to deal with and that we are stock used on the traffic Infrastructure Projects regions changes are intended to overly bureaucratic.” • between Middleton Tow- ers and Yorkshire.

• PD Ports has announced a multi-million-pound investment at Groveport, in partnership with one of Europe’s fastest growing international steel traders and long-stand- ing customer, All Steels Trading. Construction on the new six-month build capacity of daily train services from five to a programme, which offers Southampton ready potential of 12 and from 60,000 container rail direct quay access, start- freight moves per year to a potential of 180,000 ed in March and will see for longer trains moves per year. The investment also ensures All Steels Trading’s foot- the port can continue to accommodate the A project to lengthen the tracks at the Port print at Groveport expand growing demand from customers wishing to use of Southampton’s Solent Rail Terminal has from 166,000 sq ft to over rail as a preferred method of cargo shipment. completed and aims to reduce lorry move- 300,000 sq ft. ments in the city by 180,000 each year. Tom Dynes, Operations Director at Solent Ste- • Genesee & Wyoming vedores said: “Since we took on the site in 2016, As part of a commitment to improving air quality (G&W) has opened a we have worked hard and invested heavily to in the port and for the city, Solent Stevedores new office in Birmingham. improve the operation and service provided to and ABP Southampton have partnered on this The new office location our customers. The impact this project has had scheme to extend the track by 70m so that two also has a dedicated fully on our capacity to meet demand is substantial.” 645m container trains can be serviced simulta- equipped training/confer- neously. Previously only one shorter train could ence suite that allows for The Solent Rail Terminal at the Port of South- be accommodated at the terminal at a time. further investment in G&W ampton services 1,600 container trains each staff development across year. In total, the port handles more than 1.9m This project has significantly improved efficien- the UK. TEU every year. cy at the terminal by more than doubling the • GBRf has announced three Class 66 locos are to be leased from Bea- second most moved commodity. con Rail Leasing and in- Rail freight sees 3% troduced to the UK from overall rise in traffic Domestic intermodal movements were up Sweden. The locomotives 1% at 6.8bn net tonne km and internation- T66 403/4/5 will become al movements were up 8% to 0.15bn net Latest figures from the Office of Rail and 66 790/791/792 and mark tonne km, thanks in part to new financial Road (ORR) have confirmed that overall GBRf’s continued growth incentives. rail freight traffic rose 3% in 2018. and investment in its fleet. Previous conversions Biomass and ‘other’ traffic rose 9% in Q4 to Total volume of freight moved rose to some include 66 747/8/9/5/51 0.47bn net tonne km, continuing to replace 17.4bn net tonne km. Construction traffic from European to UK coal which continued to fall. Coal dropped was the best performer up 5% to 4.5bn net specification with the to its lowest total so far at 0.31bn net tonne tonne km, having grown some 15% over assistance of Electro km, a reduction of 16% year on year. the past five years. In Q4 it rose some 10% Motive Diesels (EMD). compared to last year and remains the

3 RFG News July 2019

week. After hearing evidence from RFG, will take delegates through the principles RFG welcomes the Committee have asked HS2 to give of transporting freight by rail in the UK, an ‘absolute commitment to the indus- moving into operations, regulatory and Committee report try that the capacity for freight, including infrastructure matters and logistics. The train size and capability is maintained and courses will include visits to ports, yards on HS2 improved’. and terminals to help delegates understand the potential for rail freight within HS2 is an important project for Maggie Simpson, RFG Director General, the current transport infrastructure set-up, the UK railway, and the freight said: “We all want HS2 to be a success, providing the knowledge that will allow sector continues to support its but RFG members also need assurance decision makers to make informed choic- development. However, the RFG that their current trains will be able to keep es regarding the movement of bulk freight. remains concerned that existing running in seven years’ time once HS2 freight services on the West Coast opens. We are pleased that the HS2 Bill The courses are four, day-long sessions Main Line may be adversely affected Select Committee has understood these over 13 weeks, which can be bespoke for in future, once HS2 services leave the concerns and set out this requirement for a specific organisation or open courses for high-speed network and start running HS2.” anyone interested in the development and on the route. growth of rail freight in the UK. The HS2 Committee report can be On behalf of its members, RFG has been found here. • Neil Sime, Managing Director of Victa seeking assurances that the future West Railfreight said: “We have long believed Coast timetable can accommodate all that one of the key barriers to the devel- existing freight alongside HS2 trains and Victa Railfreight opment of rail freight as a viable logisti- residual passenger services. HS2 have cal solution is a lack of knowledge of the been unable to demonstrate this to date, launches new sector’s potential. Our Railfreight Devel- and with the new West Coast Partnership opment Courses have been designed to franchise leading work on the new time- correct that situation.” table for Government, freight operators training courses and customers require a commitment that Victa Railfreight, the well-established In addition to these courses Victa offers their future needs will be properly and fully award-winning provider of rail-based a range of operational support services, included. training courses, launched a new including training and assessment, man- programme to coincide with the Multi- agement services and advice. • RFG has therefore welcomed the commit- modal 2019 Show. ments in the Third Special Report of the HS2 Bill Select Committee published last Victa’s Railfreight Development Courses

4 Forth Ports, Eddie Stobart and Direct Rail Services unveil new Tilbury - Grangemouth link Forth Ports, Eddie Stobart and Direct Stuart Wallace, Chief Operating Officer, John Clark, Sector Director at Eddie Rail Services (DRS) have announced Forth Ports said: “Linking our ports in the Stobart added: “Eddie Stobart Logistics a new weekend service linking, for the South East and Scotland by rail has been remains one of the only UK operators to first time by rail, the ports of Tilbury a priority for us and we are pleased to part- offer genuine modal choice for customers, and Grangemouth, Scotland’s largest ner with Eddie Stobart and DRS on this and we’re delighted to be able to extend port. new service. It comes on the back of an our rail offering through our new partner- increase in business at our busy container ship with DRS and Forth Ports. Unlike The service has a capacity to travel with terminals and underpins our commitment many rail operators, our services are built 36 containers and will be managed by to provide sustainable and cost-effective in direct response to customer require- Eddie Stobart working closely with both logistics solutions for our customers, aid- ments – that’s why we’re introducing a Forth Ports and DRS. The return journey ing growth and competitiveness in the new service that will link the Port of Tilbury from Grangemouth will support the coun- supply chain. This is the first time that a to Grangemouth for the first time. We be- try’s export market with the movement of rail service truly links our ports in Tilbury lieve this will help to provide our custom- spirits, chemicals and fresh food including and Grangemouth, which opens up a ers with a cost effective and sustainable potatoes. number of import and export opportunities means of moving goods between South- for our business and customers.” ern England and Central Scotland.” •

£2bn bid launched for major new Midlands Rail Hub

A £2bn package of improvements to trans- form east-west connections on the Mid- lands’ rail network has been submitted to Government.

The Midlands Rail Hub outlines plans to build 15 pieces of new and improved infrastructure to enable 24 extra passenger trains every hour on the regional network, reduce journey times, make space to shift 4,320 lorries’ worth of freight from the road to the railway.

The plans, which can be completed in phases between 2024 and In the last two years, rail usage in the Midlands has grown faster 2033, have been submitted to the government by Sub-national than anywhere else in the UK, with growth in the last decade of Transport Body Midlands Connect, in partnership with Network 121% in the West Midlands and 37% in the East Midlands. How- Rail and with the backing of 47 partner organisations including ever, without investment the region’s rail network can’t keep pace West Midlands Combined Authority, local authorities, LEPs, with this record demand. • chambers of commerce, HS2 and Birmingham and East Mid- lands airports. 5 RFG News July 2019 We were familiar with the Thorney Mill unseasonably good weather in January Thorney Mill: site, having investigated its potential as and February 2019. a railhead for a number of client enquir- first train arrives ies over the last decade. In August 2018 Like an archaeological dig, the former sid- we were asked by the site owners, Link ings were retrieved from beneath a layer into Link Park Park Heathrow, to explore the feasibility of of compacted fill, the trackwork lifted and reinstating the rail sidings on site to create relaid to the new layout, with replacement Heathrow a new facility for handling bulk materials. sleepers and rails as required. By this time all trace of the former sidings Freight has returned to Thorney Mill, had gone. With the works complete, one of Link Park West London and is ready to serve Heathrow’s occupiers, Ashville Aggre- local businesses, thanks to a collabo- We set to work designing a layout to gates, commenced discussions with the ration between key stakeholders. Nick maximise the length of train which could rail freight industry regarding the importa- Gallop of Intermodality, tells the story. be stabled in the proposed railhead site tion of aggregates by rail into the site. boundary, developing a draft Method of At 11.30 on 21 June, GB Railfreight’s Work statement covering the operation of From this, rail freight operator GB Rail- Class 66 locomotive 66775 HMS Argyll trains on and off site. freight offered to carry out a test run to and entered the reinstated railhead at Link from the main line across the new sidings, Park Heathrow, Thorney Mill in West Lon- We procured the contract to undertake culminating in this successful operation. • don, the first since services ceased and the trackworks on site, contractor KGJ the railhead disappeared in 2013. Price undertaking the works during some

options in the wider Yorkshire area are logistics hub means that 87% of the UK GBRf and iPort further afield than ever before. population is within a four-hour drive of our terminal, with easy access to the national announce new John Smith, MD of GB Railfreight, said: motorway network and sea transport links “I am thrilled to see the beginning of this as well as rail freight routes increase. Felixstowe service new service. It is fantastic to be working once again with valued friends and part- “The terminal already handles several GB Railfreight (GBRf) has started ners. Our growth in intermodal speaks to hundred tonnes of goods daily, and we operating a new service from the Port GBRf’s commitment to innovation, offering are excited that our expansion story is set of Felixstowe to iPort Rail in Doncaster. flexible and innovative door-to-door solu- to benefit businesses across the country tions that meet our customer’s needs, as even further.” The service will run five days a week, well as a consistently reliable service. This and represents GBRf’s 16th intermodal is why customers work with us again and Clemence Cheng, CEO at the Port of service to date, following rapid expan- again, GBRf are the industry’s trusted in- Felixstowe and Executive Director of sion into the market over the past 18 termodal carrier.” Hutchison Ports, said: “More compa- months. As the latest GBRf service into nies are looking for sustainable transport iPort Rail, it also strengthens a newer Steve Freeman, Managing Director of options and ways to avoid an increasingly relationship which began when GBRf iPort Rail, said: “This new Felixstowe crowded road network. The Port of Felix- became the first commercial service to service highlights the growth iPort Rail stowe is uniquely placed to meet those arrive at the newly opened facility back in is experiencing since welcoming its first demands and already offers a wide range September 2018. commercial service late last year, and the of intermodal rail freight services to key increasing significance of our facility to UK destinations. The new service will enable increased • national and international supply chains.” diversity in GBRf’s Yorkshire operations, providing customers with more logistical “Being part of Verdion’s iPort multimodal 6 RFG News July 2019

David Gwynne, Head of Mergers and Acquisitions, Associated RFG Summer Group British Ports (ABP), kicked off the main agenda of guest speakers. He spoke about how ports were evolving to become focused Meeting report on much greater use of the rail freight, supporting the growth of the wider UK economy. As coal traffic switches to intermodal, RFG was delighted to welcome members to its construction and biomass, he said on-port facilities were adapt- Summer Group Meeting 2019, held during the ing to support those new markets. Multimodal show on 18 June at the NEC Birmingham. It was well attended and we would like to thank everyone for David Cross and Steve Freeman from iPort Rail gave an in-depth taking the time to come along, and to Clarion Events for their overview of this exciting and independent, inland rail freight ter- ongoing support. minal. Steve spoke about the challenges involved with the project and the journey the company had been on. David said that The event began with an open table networking lunch and despite the site being so new, its facilities were already driving an announcement by RFG member PD Ports. Geoff Lip- demand with new opportunities coming on line. He spoke about pitt, Business Development Director at PD Ports, un- the importance in rail freight of being bold enough to develop veiled their new twice-daily, dedicated rail freight service facilities for the sector to meet modern demand from end users. between Teesport and Doncaster, on behalf of Containerships and major retailer IKEA. Carl Kent from GB Railfreight described Gary Hunter, Head of Business Development, Elastacloud, the innovative train planning work undertaken to deliver this ser- spoke about how data science is changing the way companies vice. It was very well received by the audience and RFG was view their assets. The potential of data is huge and he outlined delighted to see more of its members collaborating on innovative how it was driving new strategies to drive hidden cost savings projects to encourage more goods onto the railway. and predict new trends. He gave some practical examples from other sectors where such approaches were delivering significant The session then formally opened with an introduction and cost savings. welcome from Maggie Simpson, Director General of the RFG. She said Multimodal presented a fantastic opportunity to bring the Andy Page and Pat Smedley from Business on the Move gave industry together and welcomed the opportunity to host a meet- an update on the development of the new Global Edition of the ing during the event. popular logistics-based board game, and highlighted the spon- sorship opportunities which are available.

After the break Peter Sargant, Head of Rail Development, West Midlands Rail Executive, introduced the company and described how the economy in the region was developing. He went on to outline the key elements of their rail investment strategy noting that the region is important centre for freight and in-land terminals.

Mark Keighley from the Rail Operations Group spoke about the future of small-consignment rail freight. He introduced ROG’s new business Orion, which aims to move rail freight in passenger vehicles, with significant investment in rolling stock and services. She then presented an in-depth Policy Review where she Andy Cotton, Director at Powerflow Ltd – BG of Great Britain, addressed the key agenda items including: latest ORR stats for then tackled the mounting issue over reducing emissions from freight that showed a 3% rise in freight volumes year-on-year with diesel engines and how standard servicing falls short. He said construction up 5%; latest infrastructure upgrades, such as at small changes can have a big impact, saving the environment Buxton sidings and the Port of Felixstowe; the Williams Review; and companies a lot of money through proper functioning Network Rail’s transformation programme and restructure; how engines. High Speed 2 remains a fundamentally important scheme and an opportunity to release freight capacity across the network; and Maggie Simpson then closed the meeting, thanking everyone for HS1 as an important artery despite some possible huge access attending and to the speakers for providing such interesting pres- charge increases looming. entations with in-depth and thought-provoking content. • 7 RFG News July 2019 crossing renewals, life extension works, telecoms renewals and Colas Rail wins trio of CP6 related civil engineering works. Colas Rail will be involved from design to construction, testing and commissioning of signalling &7 infrastructure contracts and telecoms works.

Colas Rail UK has secured three major contracts with Network Rail has also awarded Lot 1 and Lot 5 of the rail haulage Network Rail: a rail systems alliance contract, a signalling and seasonal service contract to Colas Rail worth an estimated and telecoms framework contract and a rail haulage con- £12m per year. Colas will deliver haulage for bulk ballast and will tract. be operating the snow and ice treatment trains.

The first of these contracts involves the Rail Systems Alliance in NR said the new contracts will play a key role in improving the the South. It was awarded to Colas Rail and AECOM to deliver overall network’s performance and reliability for both users and rail system works including track renewals, signalling,electrifica- freight. tion and civil works for the South of England worth an estimated £1.5bn. The 10-year contract spans Control Periods 6 (2019- Jean-Pierre Bertrand, CEO, Colas Rail UK, said: “These contract 2024) and 7 (2025-2030)* creating an alliance between Network wins demonstrate that we are a major player in Control Period Rail, Colas Rail (installer) and AECOM (designer) covering the 6 and I am extremely proud of the talented people we have at Anglia, South East, Wessex, Western and Wales routes. Colas Rail UK who have made this possible. The continued hard work and dedication is visible and it is clear that we are com- The second contract awarded to Colas Rail covers signalling and mitted as always to delivering a best in class service to users of telecoms (S&T) frameworks for the western region, worth an es- Network Rail.” timated £75M for Control Period 6, including stand-alone level

UIRR and RFG Agree new collaboration to promote combined transport

The International Union for Road – Rail Combined Transport (UIRR) and the RFG have announced a new collaboration to further promote the growth of road-rail combined transport.

The organisations have signed a Memo- randum of Understanding that will enable them to work more closely together on areas of common interest, and share relevant information across their respective memberships.

RFG recognises that a continuously increasing portion of rail freight comes from intermodal transport and UIRR is the industry association for Combined Trans- port based in Brussels. It works to promote ILU-Code to its members in the UK. potential.” the use of combined transport through improving quality and performance of ser- UIRR President, Ralf-Charley Schultze Maggie Simpson, Director General RFG, vices, achieving a fair, mode neutral reg- said: “The United Kingdom is one of four said: “We are delighted to be working ulatory environment and by continuously regions of Europe with an above average more closely with UIRR in promoting enhancing intermodal transport. growth potential for combined transport. road-rail combined transport in the UK Thanks to the Channel Tunnel, using rail- and between the UK and mainland Eu- Together the two organisations will work way forwarding on the long sections of the rope. As the UK heads towards Brexit, to promote areas of common interest and journey, the lowest carbon footprint ver- our vital links with partners across Europe ensure that their member businesses sion of combined transport is possible not becomes ever more important, and this have access to information and support in only on domestic relations but also to and collaboration will help our members grow promoting combined transport. RFG will from the continent. UIRR is committed to their businesses and improve the quality also help UIRR promote the take up of the catalyse the sector helping it to achieve its of combined transport.” 8 RFG News July 2019

was invited by the specialist shipping, rail Tipped in this year’s Legal 500 as a top Multimodal 2019 : and logistics law firm to draw the lucky firm for ‘Transport’ in the Yorkshire & winner with the prize, a Hornby freight Humber region, Myton Law was estab- Prize freight train train set, going to Simon Bruce of Simon lished in 2010 by Scott Yates and John Bruce Business Mentoring. Habergham, who have 50 years of logis- set goes to… tics sector experience between them. Myton Law took a stand within the Rail Freight Group Pavilion. Rail expertise was Habergham is listed in lawyers guide RFG members and first time Multimod- added to Myton Law’s strengths in 2016 Chambers 2019 as one of the top lawyers al exhibitors Myton Law held a free when the firm recruited Chris Thornes, in the country for his logistics expertise, prize draw during the three-day show then Head of Commercial Law at DB Car- sharing joint third placing and the only at the NEC in June. go UK, and Thornes now leads a growing Yorkshire lawyer to be ranked for logis- rail team. tics. • RFG Director General Maggie Simpson

RFG Pavilion a great success at Multimodal

RFG was delighted to welcome so many members to the Rail Freight Pavilion during the Multimodal Exhibi- tion, held on 18-20 June at the NEC Birmingham.

It was a great opportunity to showcase the benefits of moving more goods by rail. • RFG News July 2019

of the port to the site to provide rail connected undercov- Maritime Transport opens er storage. Maritime can accommodate both domestic and new rail-connected International / EU trade in the new terminal. Commenting on the new facility, Peter Ward, Commercial terminal at Tilbury Director at the Port of Tilbury, said: “It’s great to see this new facility for Maritime open. We have worked with them for a Maritime Transport has opened its new rail-connected long time and it was important that the port invested in this distribution terminal at the Port of Tilbury. Maritime has new facility for their growing business. Maritime’s terminal been on site at Tilbury for 15 years and has relocated to provides a bespoke facility with easy access to our rail con- a new facility with rail connectivity near London Con- nections. The site that Maritime were previously located on tainer Terminal. the port will now become part of the Tilbury2 development area.” Handling mostly steel for distribution to Europe and rest of the world, Maritime will use an existing terminal railhead that “We’re delighted with the new site and are confident that our has been converted to allow both straddle carriers and reach relocation will benefit our customers,’ said Dave Boomer, stackers to operate simultaneously which will double the Chief Executive Officer, Maritime Transport. “Being rail con- handling capacity of the terminal. The terminal will handle nected is essential for us, as we maintain current custom- both intermodal and specialised steel wagons from the first er relationships and look to grow our intermodal business, day of operation. which launched earlier this year, to help improve both ours and our customers eco credentials.” • A 55,000 sq ft Rubb shed was relocated from another part

• Devon & Cornwall Railways (DC Rail) Please welcome the latest • Rail Operations Group members to join the • Yellow Rail • CMS Cameron McKenna Nabarro Olsway LLP Rail Freight Group • Deutsche Leasing (UK) RFG would like to warmly welcome its latest new • LUR members to the Group. Please take a moment to • AEGIS Engineering Systems introduce yourselves to their work and particular • Fraser-Nash Consultancy sectors and of course please feel free to get in touch directly if you need their services. • Suez Recycling and Recovery UK • Breedon If you would like to join the RFG yourself and help • Elastacloud us represent the sector, please click here.

10 DCRail, part of the Cappagh Group of Companies, has started a new service con- veying used rail ballast from Westbury in Wiltshire to Southampton for L&S Waste. On arrival at Southampton the ballast is processed and then used in the local construction market. The use of rail transport to deliver the material removes over 200 lorry movements per week and further improves the environmental credentials of recycled secondary aggregates.

This photo was taken on the 24 June 2019 and shows the first train being unloaded at the L&S Waste terminal in Southampton. •

developing demand-led digital demonstrators for the railway Railway suppliers as facilitated by the BCRRE’s Rail Alliance Community. collaborate to form Alex Burrows, MD of Birmingham Centre for Rail Research & Education (BCRRE) and Rail Alliance said: “This collab- ‘Rail Innovation Family’ oration is the natural next step for the Rail Alliance Com- munity as an integrated part of the Birmingham Centre for Companies from across the rail supply sector have Rail Research and Education and will support our focus on joined forces to form the ‘Rail Innovation Family’, in translating research into commercial success as well as sup- order to ‘help provide greater and clearer support porting the growth of SMEs through our innovation-based, for suppliers seeking to bring innovation into the community-orientated B2B activity.” rail industry’. Elaine Clark, Chief Executive of Rail Forum Midlands (RFM) This Rail Innovation Family will complement the work of the said: “As organisations that regularly call on rail suppliers to UK Rail Research & Innovation Network (UKRRIN), a £92m work collaboratively we should be leading by example and partnership between academia and the private sector to pro- I welcome this important initiative. In addition to UKRRIN mote innovation in rail. Moreover, against the backdrop of there are numerous other regional and national facilities and the Rail Sector Deal, an agreement between industry and funds for innovation that are relevant to our supply chain; no government delivered by the Railway Supply Group (RSG), one organisation can be expert in all of them so we need to the Rail Innovation Family will contribute directly to delivering share our collective knowledge for the benefit of the industry even more value from the rail supply sector through stimulat- and ultimately for our passengers and freight customers.” ing innovation and encouraging diversification among other relevant sectors. David Clarke, Technical Director of the Railway Industry As- sociation (RIA) said: “This is an important and mature step The collaborating organisations include the Birmingham by the supply chain organisations recognising that we all Centre for Rail Research and Education (BCRRE), the have the same objective to grow the UK supply chain and so Rail Alliance (part of the BCRRE), the Rail Forum Midlands collaboration must be the natural way forward. I look forward (RFM) and the Railway Industry Association (RIA). The Rail to working with my Rail Innovation Family colleagues to offer Innovation Family, launched at the Digital Railway Confer- even greater support to the many innovative companies try- ence hosted by the University of Birmingham, and will seek ing to improve the rail industry.” to coordinate the innovation activities of these organisations. RFG’s Maggie Simpson said: “Rail freight is benefiting from Together, the organisations within this Rail Innovation Fam- new technology and innovation, which is driving growth and ily will offer a powerful and extensive innovation offering, efficiency. We welcome this new collaboration which will which includes, but is not limited to, RFM’s Rail Sector Deal streamline and promote innovation programmes, providing Midlands Based Pilot programmes covering SME growth a clearer landscape for freight businesses and leveraging through collaboration, RIA’s Unlocking Innovation events even greater benefits for the rail industry.” • and award-winning Innovation Conference, and BCRRE’s DIGI-RAIL programme – an ERDF project identifying and 11 RFG News July 2019

The ceremony took place at Freightliner’s performance and bring even better service Freightliner and Southampton Maritime terminal and was to our customers. I am looking forward to attended by around 40 ONE and G&W the positive impact this will have on our ONE celebrate colleagues and other guests. continued relationship with ONE over the next three years. new contract G&W’s UK/Europe Region Rail Commer- cial Director, Clive Slayford joined with Dave Elsom, Director UK, Ocean Network On 10 June, global container shipping ONE’s UK Director, Dave Elsom (right), to Express (Europe) said: “We are very line Ocean Network Express (ONE) unveil the locomotive’s name: As one, we pleased to unveil the new ONE brand- and Freightliner celebrated a key mile- can – representing ONE’s philosophy and ed locomotive with Freightliner, a trusted stone in their relationship when they core purpose. partner of ONE. The new locomotive As unveiled and named reliveried Freight- ONE, we can demonstrates our commit- liner locomotive 66587 in ONE’s corpo- Slayford said: “G&W’s UK organisation ment to the environment and sustainable rate branding - the first time Freightlin- is in the midst of an exciting investment transport options throughout the supply er has painted one of its locos entirely programme, both in technology and rolling chain.” • in customer branding. stock, that will further improve operational

the road, as a train burns significantly less fuel per ton-mile GBRf and Cemex launch than road vehicles, saving around 50% in CO2 emissions.

new branded loco CEMEX UK currently transports 2.6 million tonnes of aggregate by rail each year which equates to approximately GB Railfreight (GBRf) and Cemex presented the new 100,000 trucks off the road; enough to build 40,000 houses; CEMEX-liveried locomotive at a dedicated naming and we want to continue to build on this. We are very proud ceremony held at Dove Holes Quarry, Buxton. of our partnership with GBRf and hope that together we will be able to transport more and more by rail safely whilst The new loco is called The Cemex Express. The name was reducing the number of truck movements.” • unveiled at the event by record producer and rail enthusiast Pete Waterman OBE. Resplendent in the white, blue and red colours of the CEMEX brand, the vehicle recognises the partnership between GBRf and CEMEX, which has now been in place for one year.

The Cemex Express, a Class 66 Locomotive, will travel typically between Dove Holes quarry, carrying premium aggregate for readymix and asphalt plants, and external customers throughout the UK. It will pull 22 to 26 hopper wagons that discharge their loads from underneath directly onto the plant’s conveyors. A single trainload can deliver up to 2,000 tons of material in one trip and will make over 200 trips for CEMEX each year; the equivalent of over 20,000 truckloads.

David Hart, CEMEX’s Supply Chain Director for UK & France, said: “The transport of our product by rail is of ever-increasing importance to CEMEX as we look to make our operations as sustainable as possible. Rail is a far more environmentally friendly method of transport than trucks on 12 GUEST ARTICLE

Armitt Group helps build across the UK. Our terminal is ideally located to European feeder ports such new specialist steel as Antwerp, Rotterdam, Amsterdam and Ghent, which will be extremely beneficial and profitable to both shipper and handling site at London ship-owner with only 12 hours sailing from Ghent to Thame- sport. Further to this ship-owners will also benefit by being Thamesport strategically placed next door to Europe in order to obtain return cargoes particularly on the spot market! During 2018 the Armitt Group commenced construction of a purpose-built, 120,000 sq ft specialist steel handling What are the key benefits of shipping into AMT-South as facility at the Kent port. Construction of thefirst phase your trusted UK port call? of around 60,000 sq ft has now been completed and our • Our terminal and all of its associated costs, are solely oper- specialist facility offers unparalleled multimodal - con ated by the Armitt group ( inclusive of port costs). nections for break-bulk cargo handled in the South East • We have our own dedicated stevedores handling your car- of England. go, who have a vast amount of experience in handling steel products. The facility also know as AMT-South ( Armitt Multi-Modal Ter- • We have up to 14M depth of water, no lock system and no minal), allows the Armitt Group and its customers to take congestion. advantage of London Thamesport’s deep-water berths and • 650m quay, with the ability to discharge five vessels at any excellent rail and road links to London, the South East and one time, offering a very quick turnaround time in port. beyond to the Midlands and North West of the UK. We have • Our terminals will be customs approved to assist with any successfully welcomed steel vessels and a weekly train ser- future “brexit” issues. vice running into our terminal. • Our terminal has undercover rail and a direct link via rail to the West Midlands, whereby 80% of the UK steel is destined The new facility is exclusively operated by the Armitt Group for manufacturing. and has been designed specifically for the handling of high • Close proximity to ARAG ports. quality steel products. We see this as a great opportunity to • Offers reduced sea freight costs due to its location. open up a new supply chain corridor for The Armitt Group to service European and Far Eastern markets and is a critical For further information please contact [email protected] link in our plans to develop a fully integrated supply chain

Network Rail signalling commercial director Martin Robinson Network Rail awards new said: “The minor signalling framework awards are the second awards in a three-tier approach to signalling delivery for CP6 signalling framework which aims to recognise the differing signalling work banks we contracts worth £215m have to deliver. The awards have gone to signalling suppliers that between them, have many years of experience support- Network Rail has awarded 17 framework contracts with ing our maintenance and delivery teams and will help Network a combined value of £215m to deliver minor signalling Rail to continue to improve the signalling asset condition and in works across the country. turn improve reliability for passengers over the coming years.”

The awarded contracts represent 17 route-based lots and The latest contracts were awarded under the second of three- includes two framework contractors for seven of these routes tier packages to deliver signalling works during the Control and three framework contractors for the Western route. The Period 6. The first tier of contracts was awarded in April, while winning contractors include: Balfour Beatty, Volker Rail, Amco, the third will be announced in January 2020, involving re-sig- Amaro Signalling, Amey, Linbrooke and OSL. nalling and re-control works. •

13 Planning Update

By Elizabeth Dunn, Partner and Stephen Humphreys, Solicitor, Burges Salmon.

In this month’s edition we look at the National Infra- structure Commission (NIC) report, ‘Better Delivery: The Challenge for Freight’, published in April 2019. This was in response to the government’s request to provide advice on how to ensure an efficient, low carbon freight system that manages its impact on congestion whilst continuing to provide a world-class service to benefit the UK’s economic growth.

What is in the report? The report identifies the current and predicted character- istics of UK freight. It includes recommendations to:

• promote the use of electric or hydrogen powered vehicles • develop a strategy to enable rail freight to reach zero and wariness of operators to share a facility with com- emissions petitors. Examples of existing consolidation centres are • develop standards for freight data collection. listed in the NIC’s evidence base, several of which have involved public funding to facilitate their delivery. What are the recommendations involving planning – and what are the implications? Decision-taking The recommendations are essentially for new nation- Planning conditions (and section 106 obligations) will al planning guidance on freight and for local authorities’ be an essential tool for local authorities to address the developing their infrastructure strategies. The report also implications of freight. The NIC advocate that planning indicates how these should influence plan-making and permissions for new developments contain conditions to decision-taking. optimise freight movements (e.g. timing and frequency) which can be done through Construction Logistics Plans Plan-making and Delivery and Servicing Plans. The NIC identifies that freight can be a ‘forgotten element of spatial planning’ and that the aspiration to Another approach is increasing freight movements at non- provide more housing needs to be accompanied by prop- peak hours. A key challenge is that local authorities have er consideration of the requirement for additional logistics to balance competing interests – disturbance to residents space throughout the supply chain. New national planning at night and congestion. Given such deliveries could be practice guidance should help local authorities with their exempt from congestion charges or similar schemes, this plan-making, in particular to: may incentivise operators to taking measures to minimise noise, enabling night time deliveries. • assess the need, amount and location of land needed for storage and distribution With the increased importance of and reliance on the • support clustering of related activities within a supply logistics, distribution and freight networks, planning for in- chain tegration is becoming an increasingly important strategic • maximise the number of freight trips made at off peak and spatial consideration. We expect that local planning times authorities will come under increasing pressure to prior- • accommodate deliveries at the point of delivery. itise freight through the planning process (for example, through safeguarding or allocation of appropriate sites) The NIC recommends that this guidance should be in and developers and stakeholders will need to engage in place by the end of 2020. that process to ensure that coherent decisions are made which work for the industry whilst balancing competing Within their infrastructure strategies, the NIC recommends interests. • that local authorities include a plan for urban freight. Bath, Brighton and Hove, Liverpool, Southampton and the West Midlands are working with the NIC as pilot areas using Contact: the recommended approaches. These include: investing in freight infrastructure; identifying suitable land for that infrastructure; and changing regulation to incentivise low congestion initiatives (e.g. reducing the restrictions on Elizabeth Dunn, Partner kerbside loading/unloading for participants). [email protected]

One idea promoted by the NIC is that of consolidation Stephen Humphreys, Associate centres. These are centres where goods from multiple stephen.humphreys@burges-salmon. companies are brought together to be distributed onwards com by a single supplier, thus making the loading of vehicles most efficient. The NIC recognises that barriers tocon- www.burges-salmon.com solidation centres include the lack of suitably located land 14 RFG Events Calendar 2019

The Rail Freight Group (RFG) continues to offer a number of key events throughout the year that help inform and bring together the rail freight sector. We welcome the support of all our members and hope everyone will join us.

5 February - RFG Members’ Party Truckles, Central London On 5 February RFG hosted its popular Members’ Party at Truckles, Central London. Annual Scottish Conference 6 March | North Berwick On 6 March, RFG held its Annual Scottish Conference at the Macdonald Marine Hotel & Spa in North Berwick. Spring Group Meeting 1 May | Siemens, Langley Park On 1 May RFG held its Spring Group Meeting at Siemens in Chippenham, which included a site tour. 27th Annual RFG Conference 4 June | Dentons, Central London The 27th Annual Rail Freight Group conference provided the latest, leading insight on the challenges, opportunities and disruptors facing the rail freight industry.

Multimodal Group Meeting 18 June | Multimodal Birmingham NEC RFG was delighted to again be hosting its regular Group Meeting at the Multimodal 2019 exhibition. Now in its 13th year, Multimodal is the UK and Ireland’s premier freight transport, logistics and supply chain management event.

Next Event: Book now for the RFG Awards Dinner!

RFG Awards Dinner 2019 12 September | De Vere Latimer Estate, Chesham, Bucks.

The RFG Awards Dinner will be held on Thursday 12 September 2019. If you know now that you wish to book a table at the awards dinner and/or donate a prize to the raffle, please download a booking form here and send to Phillippa O’Shea, Administration Manager, at [email protected]

The awards are kindly sponsored by Burges Salmon LLP and GB Railfreight (GBRf).

AGM and Autumn Group Meeting 6 November | Teesport Held at Teesport, with a site tour. Full details to be announced. Please contact Phillippa O’Shea at [email protected] to book your place.

Christmas Lunch 11 December | The Royal Lancaster London, Central London The RFG Xmas Lunch will be held on 11 December 2019 at the Royal Lancaster London Hotel.

To book your place at any of the RFG’s excellent events throughout the year, please email Phillippa O’Shea at [email protected] or visit our website www.rfg.org.uk/events for more details and to book.

15 RFG SPONSOR PARTNERS 2019

The RFG’s Sponsor Partners provide additional support for our activities and events throughout the year. The companies involved in the scheme represent a wide range of key stakeholders and we would like to thank each of them for their commitment and ongoing support. OPINION

(STPR) identified upgrading the Highland Main Line (HML) as Scotland can learn from the third-top priority among 29 road and rail schemes across Wales on transport priorities Scotland. Investment of between £200m and £450m was envis- aged, including ‘additional loops, dynamic loops or lengthening By David Spaven, Scottish Representative, RFG of double track sections‘ – designed to benefit both passenger and freight traffic. The recent news that the Welsh Government has decided not to build the controversial M4 ‘relief’ road near Newport The outcomes would include that ‘the freight improvements would should encourage Scottish Ministers to change direction on make it considerably more attractive for freight hauliers to move transport policy. The scrapping of the £2,000 million, 14-mile containers and other goods by rail, by reducing journey times‘. motorway plan – for cost and environmental reasons – has been hailed by Friends of the Earth Cymru as ‘great news for Eleven years later, work has just been completed on a drastically Wales and the planet’. scaled-down rail infrastructure programme. Freight train lengths – a crucial competitive factor – remain significantly constrained A low-carbon economy is central to the Scottish Government’s by the short crossing loops. In the meantime, some years after aims, and only recently the First Minister announced a ‘climate STPR, a political decision was taken to fully dual the A9 between emergency’ – yet its bloated road-building programme has still Perth and Inverness, at a then cost of £3,000m, despite this not not been cut back. £3,000 million is to be spent on dualling the having a proven business case (and being a lower priority in A96 between Aberdeen and Inverness, and a similar sum on the STPR than the HML upgrade). At no stage did the Scottish Gov- A9 between Perth and Inverness. On the latter corridor, the High- ernment undertake a ‘cross-modal’ appraisal of the best mix of land Main Line has seen a miserable allocation of government road and rail upgrades for the corridor – to meet policy aims and funds – with just £57m invested in modest track and signalling provide best value for the taxpayer. upgrades, providing very little benefit to rail freight. A new approach to evaluation and prioritisation of transport infra- Yet the Scottish Government knows the important contribution structure investment across Scotland – putting carbon-reduction rail freight can make to carbon reduction, cutting CO2 emissions centre-stage – is long overdue. This also needs to be linked with by up to 76 per cent compared to road haulage, even where stronger guidance in Scottish Planning Policy to ensure that the road collection and delivery legs are required at either end of land needs of rail freight are suitably protected in the interests of the rail trunk haul. Switching freight from road to rail can offer a strategic – and sustainable – development. ‘quick win’, as it involves doing the same for less carbon, rather than having to doing things completely differently (as is often the A key area of potential is in the food and drink sector. Rail freight climate change prescription in other sectors). But infrastructure has long played a central role in the movement south of bottled action to maximise rail freight’s potential lags far behind the gen- spirits from hub container railheads at Coatbridge, Grangemouth erous funding for new roads. and Mossend. But 100% of the 1.5m tonnes of bulk spirit moved annually from the North of Scotland to maturation sites in the One of the worst examples of capacity bottlenecks hindering the Central Belt is carried by heavy lorries. This has serious impli- transfer of freight from road to rail is on the largely single-track cations for CO2 emissions, for road damage and for road safety, Highland Main Line, where short crossing loops from the Victo- with 50,000 long-distance whisky vehicle trips annually along the rian era constrain the daily Mossend-Inverness train for Tesco / A9, and 50% of HGV movements on the narrow A95 being whis- Stobart to just 20 containers – yet the train locomotive could haul ky-related. 28 containers, a 40% increase in productivity! This significantly hinders rail’s competitivity with road hauliers who enjoy the ben- The Scottish Government could step in here – with infrastruc- efits of an entirely dual-lane or dual-carriageway A9. And with ture investment and short-term ‘pump priming’ for new train ser- the progress of the A9 full-dualling scheme there are worries that vices – to provide a very practical demonstration of its faith in freight will shift from rail to road – the opposite of government rail freight as a key contributor to carbon reduction. And taking policy. thousands of heavy lorries off the roads would also boost road safety and significantly reduce the damage inflicted by 44-tonne The Perth-Inverness corridor provides a good illustration of flaws vehicles on trunk road surfaces – and the cost of repairing them. in the current evaluation and prioritisation of transport infrastruc- What’s holding back Scottish Ministers? • ture investment, to the disadvantage of rail freight. In 2008 the Scottish Government’s ‘Strategic Transport Projects Review’ First appeared in Friends of the Scotsman.

The 27th Annual Rail Freight Conference

A huge thank you to everyone who attended our 27th Annual Rail Freight Group Confer- ence, which was held at Dentons in Central London on 4 June. The event was focused on identifying new opportunities for growth in the rail freight sector and it was a great success.

We would also like to thank all of our speakers on the day for sharing their unique insights. They helped create an event that was both interesting and genuinely useful for rail freight professionals of all levels and experience.

RFG News July 2019

cost being paid to DFDS”, according to Bernadette Kelly. Making bricks without It is the later verbal interplay in this part of the session which highlights the current day pressures on the civil straw servants. The exchange below is worthy of Sir Humphrey.

By Jonathan Roberts, JR Consulting Q5. Chair: We are in an interesting time, because at the moment we have a Brexit date of 31 October. When you The House of Commons’ Public Accounts Committee were setting up these contracts in early December last (Chair: Meg Hillier, Labour) decided this June to ask year, you had a date of 29 March and you were quite a range of specific and broad questions about trans- close to the wire getting them through in time… port infrastructure in the South West, in a one-off oral session on 5 June. Bernadette Kelly: Absolutely. Government are consider- ing across the piece what sort of no-deal planning they What the questions and answers highlighted were the need to engage in for 31 October. That includes revisit- desires and priorities for various investments, and also ing the planning assumptions that formed the basis of the importantly, the difficulties facing civil servants seeking to analysis that we did last autumn on the potential impact make procedural progress on projects, as schemes were of disruption, including on the flow of medicines and other currently mired in questions of spending review delays critical goods. and affordability. Q6. Chair: Do you think they have changed? The topics considered started with an update on the cost hang-over from the emergency Brexit-generated ferry Bernadette Kelly: We have not reached a conclusion on contracts, the implications arising from a 31 October Brex- that work. It is being done at pace right across Govern- it date, followed by the Stonehenge A303 tunnel scheme, ment at the moment. general progress with the road investment strategy, modernising the GWR in the South West, and maintaining Chair: I should hope it is at pace. strategic roads infrastructure. An illustrative pot-pourri of transport topics and about what might be next to happen, Bernadette Kelly: Yes, absolutely. That is being looked at when. The commentary below focuses on key exchanges collectively across Government at the moment. I would about the ferry contracts and the roads projects. expect that to conclude soon but, as I say, I think there is a reasonable expectation that the level of disruption in a As well as the DfT Permanent Secretary, Bernadette Kel- reasonable worst-case scenario will not be as severe as it ly, who is now well experienced with PAC sessions, her would or could have been on 29 March, based principally two colleagues were new to the PAC proceedings, Patri- on the fact that there is far more evidence now of what is cia Hayes (DG at DfT for Roads, Places and the Environ- happening on the French side of the border, and therefore ment), and Jim O’Sullivan (Chief Executive of Highways the impact that checks there could have on disruption. England). It was also the first session for the new Comp- troller & Auditor General and head of the National Audit Q7. Chair: So the seven months have given you breathing Office, Gareth Davies. space to plan.

Meg Hillier immediately highlighted the combination of Bernadette Kelly: As I say, across Government we had a funding and financial pressures, by noting that Gareth chance to stand down the immediate arrangements for 29 Davies had to sign off more than 700 public sector ac- March to the date in April; we are now reviewing exactly counts between now and recess, “so I think he is hoping what is the sensible course to take to step those up again. that the 1922 Committee will string out recess for some To an extent that is a political decision—the Cabinet will time, to give a few extra days”. need to decide what it thinks the right approach is.

The first broadside, on ferry contracts, was a salvo of Q8. Chair: That brings me to an interesting point. questions, with replies interleaved. The questions are sequenced first: “Can you tell us how much it has cost to Bernadette Kelly: The Government are still the Govern- cancel the ferry contracts?... Is that what you expected ment, and they will still need to take a decision about at the beginning?... [What did the costs pay for?]… If 31 what they think are prudent and necessary arrangements. October is an option for exiting the EU, are you thinking Those decisions have not been taken yet, but I would ex- of procuring now? We are already in June. Are there any pect the Government still to consider— plans?... We do not yet know who the new Prime Minister will be and, according to press reports, we are not likely to Q9. Chair: What is the point of no return by which the know that until around the end of July. You will have had to Government have to have made a decision so you can let the contracts by then if you are planning for a no-deal plan a no-deal exit on 31 October? scenario. What is the plan in Government, given you will not have a Prime Minister with a policy position?... What Bernadette Kelly: Are you talking about ferry capacity is the point of no return by which the Government have rather than the broader range of things? to have made a decision so you can plan a no-deal exit on 31 October?... So the seven months have given you Chair: Ferry capacity, yes. breathing space to plan[?]… Bernadette Kelly: That is a very fair question. You will not Clearly the questioning was intended to lead towards the be surprised to know it is also something we are actively next few interesting months. As a matter of record “the thinking about. total cancellation cost has been £43m to terminate the contracts, but in addition to that there is a £6.6m operating Continued over the page. 18 RFG News July 2019

Chair: I am sure you are thinking about it actively, but you Government’. See the discussions below. can just answer if you like. A303/A358 schemes including Stonehenge: Bernadette Kelly: Okay. There is not a single date, be- A47 Bernadette Kelly: At the moment we have commit- cause there are a number of different ways in which this ted to three of the eight schemes in RIS 1. Those are this procurement could be done. We should have learned one—the A303 Stonehenge project that the NAO has re- clearly from our last procurement that we cannot rely on ported on—and two further schemes, the precise names an expedited process with high legal risk. That is a clear of which I will find in my notes. The A303 Sparkford to learning point. The question is: how can we carry out a Ilchester is a RIS 1 commitment, and the A358 Taunton robust procurement process? There are different ways of to Southfields is also a RIS 1 outstanding commitment on doing that, and the experience of doing it last autumn in which work on a preferred route is currently being done by the run-up to December means that in Government we Highways England… have learned something about this market, and the market itself has learned how to respond to any procurement. Q64. Chair: When will the whole project be completed? You can talk about five years, but when in your best pro- Q10. Chair: What is the window of decision making? fessional estimate do you think it will happen?

Bernadette Kelly: I think it is soon. Jim O’Sullivan: I would not comment beyond the next five years. It is difficult enough to get the next five years Chair: Soon, okay. We are in the beginning of June and planned and funded— we are talking about the end of July for the final date. Q65. Chair: Practically then, rather than commenting on Bernadette Kelly: I think it would be prudent, if the Gov- when it will be, if there were no barriers to delivering this, ernment decide that this is what they want to do, to be and you were just sequentially working through the in- getting on with this before the summer recess. frastructure engineering work and all the rest of it, how long would it take—just the actual work—if you were to Q11. Chair: I think at least before summer recess. sequence it?

Bernadette Kelly: I am reluctant to be drawn on a date, Jim O’Sullivan: A similar scheme might be delivered in five but I would say certainly in a matter of weeks, not months. to 10 years.

The Permanent Secretary was candid about the short- Q66. Chair: And that is assuming no barriers, so it is still fall in the DfT’s original expectations about how any le- quite some time before— gal case might proceed, particularly about the speedy requirements defined by the courts for the Eurotunnel Jim O’Sullivan: Assuming no barriers and working in a challenge. There had been an assessment of legal risk, in sensible sequence. December 2018. There are more cases to be responded to, now. Major road tunnelling: Q71. Sir Geoffrey Clifton-Brown: Ms Kelly, alarm bells are The probing then continued on the wider political dimen- now ringing. The Chief Secretary said the other day that sion. the public expenditure round might not be this year. How does Mr O’Sullivan’s statement that he needs a decision Q28. Chair: So your message to the new Prime Minister [on road tunnelling] by the end of this year fit together with is, “Give us more notice”. and the Chief Secretary’s statement?

Bernadette Kelly: My message to the Government, to the Bernadette Kelly: That is a very fair question. That state- new Prime Minister and to any Minister involved in this ment is not yet a formal Government position, as I un- is, “If this is something the Government wishes to do, we derstand it. We have asked Treasury officials. When I need to do it in a way that does not require us to rely on was here a couple of weeks ago, you asked me whether procurement processes that may leave us open to a high- there was going to be a three-year spending review. My er than normal degree of legal risk.”… Let me be clear. response at that point was that, to my understanding, that The Government has not yet decided it wants to do any- was the formal Treasury position, and that was what they thing here, and there are various ways in which the Gov- had asked Departments to work on. Clearly, we all recog- ernment could procure this that would be quite different nise, given the political uncertainties, that it might not ulti- from the way we procured it last time. It is not at all clear mately be possible. It will be a decision for the Chancellor who would take that decision. I think you are inviting me and Prime Minister to carry out a three-year spending re- to speculate on advice that I don’t yet know I am going to view. A one-year settlement is not out of the question, but be given or what form it will take. that is not the formal position at the moment.

Q33. Chair: We know you are a robust witness. Are you Q72. Chair: If it were? not frightened of giving a ministerial direction, if that were necessary? Bernadette Kelly: If it were, we would need to have a conversation with the Treasury about whether we ask Bernadette Kelly: In any instance where I thought a minis- Highways England to continue to make progress on the terial direction was necessary, I would absolutely seek it. scheme to the same timeframe on the understanding that it would be funded. The key exchanges on all the other roads topics can be summarised quite shortly – ‘we as civil servants need to Q73. Chair: So special pleading. function within clear financial directions from a functioning Continued over the page. 19 RFG News July 2019

Second roads investment strategy: spending money at that rate might not be sensible… Q95. Chair: Have you done a back-of-the-envelope cal- culation about what the cost would be of a delay in the A109. Bernadette Kelly: Obviously it is a Treasury policy, spending review 1 projects like this? in a sense, both to cancel PF2 and about what sort of private finance initiatives it wishes to support in future. There Bernadette Kelly: I don’t think we have done any calcu- is work going on. I don’t think the Treasury has closed lation— the door to private finance at all, but I don’t think we yet have clarity about what the position will be. I should say Q96. Chair: I’m sure you must have one to persuade the that we don’t expect this scheme now to revert to private Treasury that you need the money. You must have one finance—the A303, I should say. We are now working on somewhere. the assumption—

Patricia Hayes: Just to give a bit of timing context, it is Q110. Chair: Didn’t you get a letter of comfort that, when worth remembering that the second roads investment the PF2 was abolished, this would be funded?... strategy starts next April, so we are going to have to give Jim clarity on what we are asking him to do before that. A113. Jim O’Sullivan: The only security we have at the The amount of time to make decisions on the second moment is that we have £20m to develop the scheme, roads investment strategy is pretty limited, irrespective of against this 2026 delivery date for this year. We have ad- the timing of the spending review. vised Treasury that we need another £50m next year, but we also need certainty of funding by the close of this cal- Jim O’Sullivan: To add to that, our expectation according endar year. Highways England has no understanding as to the process, notwithstanding the spe–nding review, is to where the funding is coming from. November, in terms of when the original plan— Bernadette Kelly: As I said a little earlier, that is why we Q97. Chair: So that is when you need to have the infor- now expect that matter to be resolved, and we will have mation by… that discussion with the Treasury in the spending review.

Jim O’Sullivan: The only other thing I would add is that many of these projects that were due to start either at the end of RIS 1 or at some point in early RIS 2 were funded in RIS 1 for their development, so until next April, the scheme and other schemes are funded fully, such that they can hit their dates. Contact: Jonathan Roberts, MD, Q98. Chair: You will need to do preparatory work and so JR Consulting on, won’t you? That is why the November date is critical, 07545 641 204 presumably. [email protected] www.jrc.org.uk Jim O’Sullivan: Yes. We are funded to hit the ground running in April next year. Clearly, at the point at which we be- lieve we are not going to be fully funded in April, to continue

What aspects of your job do you find the most challenging/ Women Inspiring Rail rewarding, and why?

RFG’s Maggie Simpson was recently interviewed as part of Rail freight is a small part of our industry and we have to shout Global Railway Review’s Women Inspiring Rail series. In it quite loudly to make sure our voices are heard. This can be quite she discusses her role in helping freight become the narra- frustrating and challenging – and I am constantly surprised by tive of businesses across the UK. how little people still know about the freight sector. But it is really rewarding when you feel you have made a difference, and when How did your career in rail begin and what does your current you hear others talking about freight as part of their narrative. job involve? What is it about the rail industry that you are most passion- I was working in safety and risk assessment for a consultancy, ate about? and we started to work with railway clients, which gave me a really good introduction to the sector. From there I went to OPRAF, Being in rail freight is a real privilege because it has such a wide managing franchise contracts, and then to the Strategic Rail Au- reach across so many parts of our economy. I get to learn about thority in their freight team. I’ve been in freight ever since, moving ports, international trade, shipping, quarrying, construction, steel to the Rail Freight Group in 2005. distribution, retail and a whole host of other areas just by talking to our members. The railways are such a fundamental part of In my current role I lead the RFG – in particular its work to in- the wider business framework in the UK, and when we can help fluence the growth of rail freight. This means I spend time with those businesses improve their supply chains it is really reward- opinion formers, politicians, railway bodies and of course the ing. companies who make up our membership, setting out the case for freight. A big part of our work is making sure that railway Read the full interview at Global Railway Review. and Government policy supports our sector. We also do a lot of promotional work, as well as running an extensive events programme. 20 Are you interested in advertising your business in RFG News? Rail Freight Group (RFG) has made the decision to open up its newsletter to advertising for the first time in the Group’s history. This is following interest from a number of companies in further promoting their businesses, services and events in the form of traditional display advertising.

RFG News is a digital-only publication and is created as an A4 downloadable PDF that is housed on the RFG website in its own section.

Each year we produce six issues of RFGN that goes out to around 1,000 people comprised of our members and key stakeholders signed up through our website with a double-opt in process. Our readers are made up of senior decision makers in the rail freight sector and are mostly managing director, director or senior manager level.

RFG is offering currently offering full page and half page positions. Details of the current advertising packages are available on request and places are based on a first-come, first-served basis.

Please email [email protected] if you are interested. •

21 European News July 2019

closely to optimise their activities as part of the Hupac and Duisport Belt & Road initiative. Both partners will jointly develop terminals along the Silk Road and work News in brief: on solutions to reduce the journey times of Chi- team up to promote • SBB Cargo has deployed nese trains. autocouplers on around combined transport 100 freight wagons and Michail Stahlhut, CEO of Hupac Intermodal, 25 locomotives as part of Hupac Intermodal and Duisburger Hafen said: “The aim is to implement Switzerland’s an ongoing drive towards (duisport) are intensifying their cooperation modal shift targets on the north-south axis, and modernising rail freight. to further develop combined transport with a to connect the Hupac network in central Europe The new couplers ensure focus on strengthening the Duisburg termi- to the transcontinental traffic flows on the east- the shunting operation is nal for transport between Europe and China. west axis. To this end we are jointly building a faster and safer. Wagons pipeline, strengthening the Duisburg location are joined to one other Hupac has a strong interest in further expand- and using the strength of the respective part- and to locomotives auto- ing its traffic in the Rhine/Ruhr region by using ner.” matically, reducing han- additional terminal capacities as a hub. Another dling. priority is the improved connection of the west- Erich Staake, CEO of Duisport, added: “Through ern ports of Antwerp, Rotterdam and Zeebrug- this cooperation, we are developing additional • The INNOWAG project, ge. This will strengthen the Port of Duisburg as services for our customers and we are expand- financed within the Shif- a gateway for the onward transport of maritime ing our international network as a premium port t2Rail initiative of the Eu- freight within Europe. and our position as the most important Euro- ropean Commission, had pean hub in intra-European and international its final event in Munich, Hupac and Duisport will also cooperate more trade”. • Germany on the 17-18 June. The INNOWAG project partners gave de- tailed presentations and discussed in details the outcomes of the work carried out during the 32 months of the project life in the three Work Streams which comprised: Cargo condition monitoring, wag- on design and predictive maintenance.

© Noahs Train_ • The Spanish port of c DB AG, Oliver Seville is continuing to Lang grow in handled merchan- dise as the MSC-owned had an opportunity to get up close to the larger- rail freight company Noah’s Train: On the than-life images of animals and add their own Medway has decided to design suggestions. The train’s next stops will double its rail freight ser- move for children be Oberhausen on 29 June and Luxembourg on vices. As reported in www. 10 July. “Children for the Climate” is the slogan of railfreight.com It will now the eye-catching Noah’s Train as it travels run six weekly trains be- Named after Noah’s Ark in the bible, the train across Europe sending a message of cli- tween the ports of Seville is an initiative from Rail Freight Forward (RFF), mate awareness. and Sines (Portugal). In- a group of several rail freight operators around itially, these were three Europe that want to demonstrate just how green Embarking on another tour of Germany, No- weekly lines. This upgrade rail transport is. As well as Germany, the train ah’s Train is a colourful way to draw attention is due to demand from has visited Poland, Austria, Italy and Belgium. to eco-friendly, rail-based freight transport. This existing clients, who RFF’s goal is to increase rail freight’s total sec- time, it is also focusing on children and the cli- requested for an increasing tor share to 30% by 2030. mate. So far, people in Leipzig and Munich have in the service frequency.

• Rhenus Logistics has Contact the RFG Team: launched its first intermodal home delivery ser- Maggie Simpson, Director General, 07737 007 957 vice between Northern Phillippa O’Shea, Administration Manager, 07931 763 081 Italy and Campania. For Yvonne Mulder, Project Manager, 07887 767 666 the train leg it will use the James Falkner, Media Officer, 07753 271 110 high-speed freight service Robin Smith, Welsh Representative, 07968 488 905 Mercitalia Fast. Rhenus , Scottish Representative, 07917 877 399 David Spaven offers this service under Mike Hogg, North of England Representative, 07833 402 804 its umbrella of sustaina- RFG News is published by the Rail Freight Group, 7 Bury Place, London, WC1A. Tel: 020 3116 0007 ble commitment, already [email protected]. www.rfg.org.uk. RFG welcomes comments, letters and short articles. Opinions expressed in these using electric and meth- articles are of the author only. RFG News is published primarily for online distribution but we will continue to send hard ane-fuelled vehicles for copies to those readers who request them. RFG does not endorse the services of its advertisers. home delivery in cities.