Executive SummaryExecutive
Rail Freight: Delivering for Britain
1 Contents Executive SummaryExecutive Executive Summary 4
Introduction 6
The story of rail freight 7
Framework for a successful freight sector 10
Government policy should be aligned across modes 12
A set of consistent legal, commercial and regulatory mechanisms is needed to underpin continued business confidence and private sector investment 13
A network and timetable that is co-ordinated on a GB-wide basis is essential 14
Modelling capabilities should be enhanced which better capture the value of rail freight, to help make choices about network use 16
The GB-wide charging regime that provides long-term clarity and is affordable should be retained 16
An industry structure that provides strong incentives to all parties to encourage freight growth should be prioritised 17
Industry processes that provide flexibility for freight to respond to changing industrial and logistics demands must be retained 18
Case studies 19-23
1. Rail freight building a strong and balanced economy 19
2. Freight supporting Network Rail and the delivery of passenger services 20
3. Delivering benefits to businesses 20
4. Supporting the delivery of major infrastructure projects 22
5. Investment in environmental benefits 23
6. Discover the UK’s biggest mover of metals 23
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Rail Freight: Delivering for Britain Contents 3 Executive
Executive SummaryExecutive Summary SummaryExecutive
This document is a submission to the Williams Government policy should be aligned Review on behalf of the RDG Freight Board. across modes
The rail freight industry is vital to the A set of consistent legal, commercial economic success of Great Britain, delivering and regulatory mechanisms is needed to around £1.7bn of economic benefits and underpin continued business confidence supplying £30bn of goods to customers and private sector investment across Britain each year1. The environmental benefits from moving goods by rail rather A network and timetable that is co- than by other modes are substantial, with ordinated on a GB-wide basis is essential rail producing lower carbon emissions and less local air pollution. These benefits have Modelling capabilities should be enhanced been realised through substantial investment which better capture the value of rail by freight operators and other parties in freight, to help make choices about the logistics chain. The continued stability network use of the rail industry framework and business confidence (from freight operators and their customers) are critical to ensuring continued The GB-wide charging regime that provides investment with the economic, social and long-term clarity and is affordable should environmental benefits that this will bring. be retained
An industry structure that provides strong incentives to all parties to encourage The environmental benefits from freight growth should be prioritised moving goods by rail rather than by other modes are substantial, with rail Industry processes that provide flexibility producing lower carbon emissions for freight to respond to changing industrial and less local air pollution and logistics demands must be retained
This framework will not only benefit freight, To support a sustainable and successful rail but also passenger operators: delivering freight sector into the future, the following a better railway for all participants and framework should be incorporated into therefore for all the users and customers of whatever industry structure is developed the railway. through the review:
1. ‘Rail freight working for Britain’, Rail Delivery Group (June 2018), p.1–2. Values are for 2016.
4 5 Introduction The story of Introduction rail freight The story of rail freight rail story of The
The rail freight industry in Great Britain • freight operators and their customers Government through Network Rail encouraged rail freight operators to invest in delivers substantial economic, environmental make significant long-term investments of has invested approximately £700m their operations, to innovate and deliver high- 2 quality services to their customers, despite the and social benefits . This paper outlines their own money in assets and people; into improving the capacity and the contribution of rail freight and details uncertainty created by the charging regimes. • there are five national freight operators the framework that the rail freight industry capability of the rail network for Freight operators commit to investments that compete with each other and with recommends is included in the Williams freight that span many control periods and different road hauliers to supply logistics services Rail Review. The paper has been developed charging periods. for business; through extensive input and consultation with Since privatisation, freight operators the freight operators, Network Rail and the • freight operators are national businesses: have invested more than £2.8bn.8 Those Rail Freight Group. organisational and administrative The rail freight industry in Great Britain makes investments have been focussed on increasing boundaries are irrelevant, with an important contribution to the economy: Underpinning this framework are three key the capacity of freight trains, enabling more approximately 80% of freight journeys delivering £30bn of goods to customers principles, which are that any rail industry goods to be moved on fewer trains, whilst crossing more than one Network Rail route across Britain and generating around £1.7bn of improving reliability, reducing delays on the structure should: 4 boundary. economic and environmental benefits. network. To date, 70% of rail freight operators’ • consider the interests of all passenger and Despite these differences, most of the Rail freight competes with road freight – 11% investments have been directed towards freight customers; 5 framework outlined in this paper would of inland freight transportation is made by rail . capacity enhancements and 30% towards 9 • ensure decisions about access to the also benefit passenger services thereby Rail freight could deliver significant additional improving reliability and performance. network continue to be based on contributing to an overall improvement in the benefits if it were to increase its market share Investments by rail freight operators have been transparent criteria; GB rail industry. of inland transportation – one freight train can complemented by investments made by other remove up to 76 Heavy Goods Vehicles (HGV) stakeholders: government through Network • support a successful rail freight sector A stable and transparent environment is from the road6, reducing congestion, delivering Rail has invested approximately £700m into (consistent with government policy to critical for ongoing private sector investment environmental benefits (as a tonne of rail improving the capacity and capability of the rail 3 support modal shift of freight to rail) . required to enable rail freight to continue to freight emits 76% less CO2 than a tonne of road network for freight operations (e.g. providing deliver economic, social and environmental 7 The rail freight sector operates very freight) and safety benefits. gauge clearance and enabling longer trains to benefits. 10 differently to most of the passenger sector: operate) and ports have invested over £250m Rail freight is a highly competitive sector, where between 2007 and 2014 to connect their • freight operators have no franchise five national operators compete directly for infrastructure to the rail network.11 The figure agreements: they operate on an open tenders and to develop new traffic to rail. This below illustrates some of the investments by access basis in response to customer competition, both with other modes and within ports in rail freight facilities across northern demand based on commercial business to rail freight, has been a significant driver of the England.12 business contracts; improvements and efficiency gains that rail freight has achieved since privatisation. It has
4. Rail Delivery Group (2018), ‘Rail Freight – Working for Britain’, June. Values are for 2016. / 5. Rail Delivery Group (2014), ‘Keeping the lights on and the traffic moving’, May, p.5. / 6. Department for Transport (2016), ‘Rail Freight 2. ‘Rail freight working for Britain’, Rail Delivery Group (June 2018); and ‘Value and importance of rail freight’, Network Strategy – Moving Britain Ahead’, September, p.6. / 7. ibid. / 8. Rail Delivery Group (2018), ‘Rail Freight Working for Rail (April 2013). / 3. ‘Rail Freight Strategy – Moving Britain Ahead’, Department for Transport (September 2016), paras Britain’, p.6. / 9. ibid. / 10. ibid. / 11. ibid, p.22. / 12. Rail Delivery Group (2015), ‘Freight Britain – Continuity and certainty 54, 61–63. for rail freight’, February, p.6–7.
6 Rail Freight: Delivering for Britain Introduction 7 Port investment in freight facilities
Newcastle CP4 funded freight schemes* 1 Other major railway lines City In a typical year, freight operators Example of port provide 5,000 train services to The story of rail freight rail story of The investments worksites across Great Britain, freight rail story of The Leeds Teesport: new rail terminal make 14,500 trips on the network 1 and contribution to gauge in support of Network Rail’s Doncaster 2 clearance work on the Manchester mainline engineering activity 3 Port of Hull: rail loading Liverpool She eld 2 facilities for biomass Port of Liverpool: handling 3 facilities for biomass Compared to the road network the rail example, in a typical year, freight operators network is over twice as reliable with 4.4 provide 5,000 train services to worksites seconds per mile delay on average on the rail across Great Britain, make 14,500 trips on network compared to 9.4 seconds per mile the network in support of Network Rail’s on the strategic road network.18 Rail freight engineering activity and to support Network operators account for just 2.5% of total delays Rail’s local distribution centres. During Control Period 5, the Strategic Freight Reliability has also improved, with on average to passenger services: a 40% improvement In turn, the focus of Network Rail’s activities Network (SFN) fund administered £235m 85% of trains arriving at their final destination since privatisation.19 of investments to improve the network to within 15 minutes of schedule (A2F) in at the weekend means that the freight support rail freight growth13, focusing on 2017/18.17 Since 2011 A2F has improved by To accommodate changing customer operators can use assets that would projects such as gauge clearance and capacity 5%, which is notable in the context that PPM needs freight operators have had to be otherwise be under-utilised at these times enhancement schemes on freight routes.14 (Public Performance Measure) for passenger flexible and adapt their models and make to provide these services to Network Rail. operators has deteriorated by 7% over the investments to support a changing market. This lowers the costs of provision to both These investments have supported same period – see graph below: The product mix moved by rail freight has Network Rail and the freight operators’ productivity improvements: the number dramatically changed since privatisation: other customers. Any move away from a of tonnes lifted per train has increased by while rail freight used to rely heavily on coal national network would be likely to reduce over 89% between 2003/04 and 2013/14;15 (26% of the commodities moved by rail in the flexibility of freight operators to support productivity has increased, with freight 1998/99, 7% in 2017/18), it now transports Network Rail with assets from across the tonnes moved per staff member increasing by mainly containers that arrive by ship and country and thus increase costs to both 60% over the same period.16 construction material (respectively 40% Network Rail and freight customers. and 25% of commodities in 2017/18, against With the right framework, the rail freight 20% and 12% in 1998/99).20 These demand Port investment in freight facilities sector can continue to grow and develop, shifts have required rail freight operators to delivering greater benefits and supporting A2F adapt: where they were previously carrying the development of the economy and rail PPM low-value, bulky goods on under-utilised 1.10 industry. The following section outlines railway sections, they increasingly transport the rail freight industry’s proposal for a fast-moving, manufactured consumer goods framework that would support continued 1.05 or construction materials on highly-used, success for the rail freight sector. passenger-dominated railway sections. 1.00 Many of the elements of this framework The rail freight industry also plays an would also benefit passenger operators: this important role in supporting Network Rail 0.95 is not a ‘freight only’ framework. with the delivery of the passenger railway
Percentage change Percentage through the provision of a wide range of 0.90 engineering support such as rail milling, snow clearance and rail head treatment trains; 0.85 delivering material to support engineering 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 works; operating local distribution centres; Year and supplying engineering materials. For
13. Network Rail (2017), ‘Freight Network Study’, April, p.15. / 14. For a list of projects, see Network Rail, ‘Strategic Freight Network Enhancement Schemes’, https://cdn.networkrail.co.uk/wp-content/uploads/2016/11/Strategic-freight- network-enhancement-schemes-2.pdf, accessed 15/03/2019. / 15. Analysis based on Office of Rail and Road data. / 16. Network Rail (2017), ‘Freight Network Study’, April, p.19. / 17. Network Rail data. Trains arriving within 15 minutes of 18. Source – rail data from Network Rail and road data from Highways Agency / 19. Rail Delivery Group (2018), ‘Rail schedule for all reasons including customer request Freight – Working for Britain’, June, p.13. / 20. Analysis based on Office of Rail and Road data.
8 Rail Freight: Delivering for Britain The story of rail freight 9 Framework for a successful rail
Framework for a successful rail freight sector freight sector Framework for a successful rail freight sector
10 Rail Freight: Delivering for Britain Executive Summary 26 March 2019 11 Framework for a successful rail freight sector Framework for a successful rail freight sector
To support a sustainable and successful rail Government policy should be aligned A set of consistent legal, commercial While the rail freight operators and their freight sector into the future, the following across modes and regulatory mechanisms is customers are willing and able to make these framework should be incorporated into investments, the retention and stability of the whatever industry structure is developed Government policy is organised by mode needed to underpin continued legal, commercial and regulatory frameworks through the review: whereas the market is cross-modal and most business confidence and private of the rail industry, like in any other sector, are customers using rail also use other modes. sector investment crucial to support continued investment. Government policy should be aligned Greater alignment of government policy across modes making would facilitate a level playing field Typical assets in the sector have asset lives The legal, commercial and regulatory when choosing road and rail investments. of 30-35 years e.g. locomotives, wagons, structure of the rail industry (including five- cranes. The freight operators invest in these year funding settlements for Network Rail A set of consistent legal, commercial It would enable policies that optimise the long-term assets, sometimes via Rolling and a single, national, track access agreement and regulatory mechanisms is needed to different transport networks ensuring the Stock Companies (ROSCOs)22 without for freight operators) is well understood by underpin continued business confidence optimum mix of investments and support any guarantees from government. This participants in the industry. Largely retaining and private sector investment the freight operators in meeting the needs of their customers. investment is undertaken on a commercial these structures, with any amendments being basis and often in conjunction with freight evolutionary, would underpin a stable sector. A network and timetable that is co- For example, responsibility for freight is customer commitment and/or investment ordinated on a GB-wide basis is essential split across different modal teams within Of particular importance is the retention of the Department for Transport (roads, rail, For example, Colas Rail has invested over an independent body to arbitrate on access £65m since 2013 on new locomotives, to the network: this will become even more Modelling capabilities should be enhanced environment); land use planning sits with the wagons, training and facilities, much of this important if the infrastructure management which better capture the value of rail Ministry for Housing, Communities and Local in new Class 70 locomotives and new JPA and passenger operations on any part of freight, to help make choices about Government, which can result in disjointed cement wagons as a joint initiative with the network are more closely integrated so network use priorities and policy support. Tarmac. that freight, open access and other (non-VI) In this context, it is notable that the ongoing operators are not discriminated against. The GB-wide charging regime that provides analysis by the National Infrastructure long-term clarity and is affordable should Commission is mode-agnostic and reflects be retained that land-use policy is an important issue for freight: a finding that is not reflected within 21 An industry structure that provides strong government policy. incentives to all parties to encourage freight growth should be prioritised
Industry processes that provide flexibility for freight to respond to changing industrial Greater alignment of and logistics demands must be retained government policy making would facilitate a level playing The remainder of this section outlines these elements and the rationale for them in more field when choosing road and detail. rail investments
21. National Infrastructure Commission (2018), ‘Future of freight: interim report’, December. 22. ROSCO – rolling stock operating company
12 Rail Freight: Delivering for Britain Framework for a successful rail freight sector 13 Strategic Freight Corridors Framework for a successful rail freight sector Framework for a successful rail freight sector
A network and timetable that is With approximately 80% of freight flows co-ordinated on a GB-wide basis is crossing boundaries between Network Rail routes, a move away from a single GB-wide essential timetable process could, if it is not managed As illustrated in the map, the rail freight carefully, pose significant operational network stretches across Great Britain. and commercial problems for the freight operators, making them less competitive with It has been estimated that 80% of freight road freight. journeys cross current Network Rail route boundaries and enable the delivery of goods right across the country. The current approach of a single, GB-wide, timetabling process, including co-ordination A national planning system of engineering access, and a dedicated enables the freight operators Network Rail freight team provides significant benefits in terms of making transactions to provide a seamless service between Network Rail and freight operators to their customers, competing more efficient. with a national road network A national planning system enables the that is accessible without any freight operators to provide a seamless service to their customers, competing with boundaries a national road network that is accessible without any boundaries. Any move away from a GB-wide network and timetable (e.g. to a model in which more of Network Rail’s timetabling and possession de-confliction functions are devolved to Routes) could, if it is not managed carefully, increase the administrative burden on the freight operators and reduce flexibility, potentially increasing their costs and therefore costs to their customers, making it more difficult to compete with other modes. In turn, this could result in greater road freight traffic with the negative consequences that has of congestion, pollution and adverse safety impacts.
14 Rail Freight: Delivering for Britain Framework for a successful rail freight sector 15 Framework for a successful rail freight sector Framework for a successful rail freight sector
Modelling capabilities should be The GB-wide charging regime that An industry structure that provides back to the network on Class 88. Further enhanced which better capture the provides long-term clarity and is strong incentives to all parties to incentives would continue to underpin the value of rail freight, to help make affordable should be retained encourage freight growth should be willingness and ability of the freight industry to invest in improving its environmental choices about network use It is very important that we retain a GB-wide prioritised performance. As we look to further expand the freight charging regime for freight operators given The rail freight industry welcomes the focus Heat map showing market there are inevitable trade-offs to the nature of their business and markets. on freight in the Scottish High Level Output be made, given the increasingly congested Freight operators compete directly with road Specification (HLOS), with specific freight regional economic network. There is also a trade off between hauliers amongst others. In contrast to the journey time and performance targets, and benefits using capacity and retaining the ability rail charging regime, road freight operators other requirements around gauge clearance to recover the service after a period of do not pay directly for the wear and tear and maintenance.24 This provides a clear disruption. There are limited models available they impose on the road network, or for the incentive for Network Rail in Scotland to that support these trade-offs. congestion and disruption that they impose consider the needs of the freight industry to on other users of the network. Many of the support the growth of freight. The benefits that freight delivers are not fully products that are shipped by rail could also be captured in decision-making when assessing shipped by road. The rail freight industry would welcome allocation options. To make the best use of similar commitments to be contained the existing capacity on the network and to This competitive context should be taken into in future policy documents from other understand the relative value of different account when the charges for use of the rail administrations, including DfT, the devolved capacity trade-offs, more information about network are set. While it is recognised that administrations and sub-national transport five-year price controls are a long time for the economic value of different services bodies. Edinburgh would aid decision-making. Better modelling government, the assets that the rail industry The recent RDG report25 Rail Freight - which sufficiently captures the value of rail invests in last far longer. A long-term Glasgow Working for Britain showed that more than freight will act as an incentive for operators perspective is essential to provide a stable 60% of rail freight activity is focussed in to invest in new technologies and improve framework and enable business confidence. former industrial heartlands in Yorkshire performance further. Freight operators have invested over £2.8 and Humber, the North West, Scotland and It is recognised that there are high economic billion since 199623 in long-term investments the Midlands and overall, more than 87% is values in running passenger services into in assets and staff. In order to continue this outside of London and the South East. See Manchester major conurbations at peak times, so it is successful track record in investment the heat map: suggested that there is a focus on optimising sector needs confidence in the continued Liverpool DRS have made significant investment the balance of freight and passenger services development of the industry. Confidence in in new modern locomotives and have in in the off-peak to support the greatest overall the market enables freight operators to not service 34 class 68 locomotives and 10 class benefit to the UK economy. only take on temporary staff in response to particular contracts, but to continue to invest 88 locomotives. These new locomotives in them after that contract has ended. use a range of approaches to reduce their London environmental impacts, including: stop/start For example, in response to increasing technology and regenerative braking on Class requirements to support the delivery 68 and regenerative braking providing power of Crossrail, GB Railfreight recruited approximately 40 new staff. Following the completion of GB Railfreight’s contract, 50% Source: Illustration based on KPMG data - Jan 2018 / 24. of those staff have been retained within the Transport Scotland (2017), ‘The Scottish Ministers’ High- industry as ground staff or (with additional level Output Specification for Control Period 6’. / 25. Rail training) as drivers. Delivery Group (2018), ‘Rail Freight – Working for Britain’, 23. See footnote 8 June, p.8.
16 Rail Freight: Delivering for Britain Framework for a successful rail freight sector 17 Case Studies Case studies Framework for a successful rail freight sector
Over the longer-term, whole market segments can increase or decrease. For In 1998/99 intermodal traffic example, in 1998/99 coal represented 26% represented 20% of all of all commodities moved by rail; by 2017/18, this had reduced to 7%. In contrast, in commodities moved, by 2017/18 1998/99 intermodal traffic (i.e. containers Case Study 1 - Rail freight building a this had increased to 40% arriving at a port and being shipped onwards by rail, or vice versa) represented 20% of strong and balanced economy all commodities moved, by 2017/18, this In July 2017, Colas Rail began running services Tarmac are one of the country’s had increased to 40%. The paths needed for Tarmac to transport cement over 400 largest rail freight customers and have to transport these commodities across the miles from Dunbar to West Thurrock. significantly increased the tonnage of network are very different and it is therefore both cement and aggregates moved by Industry processes that provide Since 2015, Tarmac has been investing to important that there is flexibility within the rail over recent years, with further plans flexibility for freight to respond to increase the output from the Dunbar cement industry processes to accommodate both for growth. The Dunbar-West Thurrock changing industrial and logistics short and long-term changes. facility. After an initial period providing cement to a range of projects including the flow has proven the notion that utilising demands must be retained It is vital to retain the protections contained Aberdeen Western Peripheral Road and a the railway to increase the distance The rail freight industry is driven by customer within existing processes such as Part D of number of wind farms, Tarmac focussed products are able to economically travel needs: it relies on winning contracts from the Network Code (including the Decision on bringing the production from Dunbar to is directly linked to increasing our UK its customers, who are often large national Criteria) and the clear written responsibilities the south east of England. Tarmac’s West production following investment in our or multinational companies. Businesses are of the different players within the industry Thurrock facility supports the construction Dunbar plant constantly evolving their logistics chains, as including Network Rail. However, it is industry in London and the south east of customer demands change and also in driving recognised that there is room for further England. The Dunbar – West Thurrock flow improvement and there is an opportunity to to be more efficient. In the short-term, the has also enabled a reduction in use enable greater flexibility even within these The route from Dunbar to West Thurrock needs of customers can change frequently, traverses three Network Rail routes: Scotland, of imported cement thus positively according to the season or the phase of obligations and timescales. London North Eastern and Anglia. Colas Rail impacting the UK economy in a number the project (e.g. in the case of supplying worked closely with Tarmac and Network Rail construction materials). of ways. Were it not for the rail supply System Operator to identify the paths that chain, this would not have been possible. An effective framework of aligned incentives would enable this opportunity to be delivered. encourages flexibility and allows operators This illustrates the importance of having the to react speedily to changing business timetable co-ordinated on a GB-wide basis. requirements. Each train delivers 1,200 tonnes of cement Chris Swan, Head of Rail, Tarmac The role of a national system operator is which supports increased economic activity essential in enabling this flexibility, including in Great Britain and reduced imports as there So far, the West Thurrock service has amending and adding new timetabled train are no quarries able to supply this volume of delivered over 120,000 tonnes of cement: paths. Road is intrinsically a more flexible material locally. which is equivalent to the building of 15 mode with no need to book time slots to hospitals or 53 schools. access the road network. Whilst rail can This service has only been possible because never react to change as quickly as road, of the investment by Tarmac and Colas Rail in industry processes that support change are new facilities, JPA cement wagons, Class 70 vital and can increase the amount of freight locomotives, IT systems and training. moved by rail.
18 Rail Freight: Delivering for Britain Framework for a successful rail freight sector 19 Case studies Case studies
David Clough©
Case study 2 - Freight supporting Passenger rolling stock support The Nickel Mattes are imported via the Port When we go shopping for a new party of Southampton from Canada and Japan. frock or a jumper, we may not think about Network Rail and the delivery of Freight operators support the delivery of Once the Nickel Mattes have been processed how those clothes got there. We certainly passenger services through enabling the passenger services into the various high value products, up to might not have realised that there is a high haulage of new passenger rolling stock The freight operators play an important role 1500 containers per year are transited using chance that those clothes would have been to test locations and providing the train in supporting Network Rail and the delivery of Freightliner’s direct rail service to the Port of transported by train for part of the journey. crew to conduct the testing; enabling the passenger services. Southampton, from where the products can Each year over 2,000 containers full of transfer of passenger stock to work sites for connect to their customers around the globe. clothes and accessories are transported Network Rail’s engineering haulage contracts refurbishment or maintenance; and supplying on the daily train service, operated by with freight operators encompasses the the train crew for charter services. Freightliner, a subsidiary of Genesee & provision of crews, locomotives and wagons Wyoming Inc. (G&W), which runs directly to operate the midweek engineering material from the Port of Southampton and arrives supply network and also possessions trains We use Freightliner multimodal services to Case study 3 - Delivering benefits at Cardiff under four hours later. that serve individual works sites: manage our imports and exports of over 4500 to businesses TEU (twenty foot equivalent unit) per annum; Possessions The Vale Europe Limited nickel refinery the vast majority of these movements are by
- 5,000 trains per year serving worksites based in Clydach is the largest in Europe and rail. The rail service is not only less prone to traffic hold-ups, adverse weather conditions nationwide; produces high-purity nickel and sub-products We have been working in partnership with and various other delays but also enables for specialist areas, such as car components, Freightliner for many years, utilising their - over 8,000 instances of locomotive Vale Europe Limited to plan production more batteries, nickel plates and nonferrous allies. rail service to Cardiff. The service offered provision; efficiently. Transporting these volumes by by Freightliner is very reliable and this High quality nickel gives your bathroom taps rail hugely contributes towards minimising - 185,000 hours of duty time to, from and enables us to plan the deliveries to our and shower heads their bright metallic finish each container’s carbon footprint. I would working on site. distribution centre efficiently, whilst at the and you will find it in everything from your recommend rail movements wherever same time know that we are reducing the Networks / Bulk Ballast / Ad-hoc coins, to your car, your mobile phone and possible. carbon footprint of our logistics chain. - 7,250 trains per year transporting spent rechargeable batteries that we all rely on materials to waste sites, fresh ballast from every day. quarries, new rails and other inter-region The refinery produces around 40,000 material supply movements; metric tons of nickel products per year Phil Bowden, Senior Logistics Coordinator at and supplies around 280 clients in over 30 Adam Foskett, Head of Sourcing, - 73,500 hours of duty time. Vale Europe countries across the world. There are over 200 Peacocks Local Distribution Centres (LDCs) permanent employees based at the refinery, The major Peacocks distribution centre in Freight operators are contracted to which creates high quality employment South Wales employs around 600 people. It is operate NR’s LDC’s (Bescot, Carlisle, Crewe, opportunities, contributing to the local served by containers arriving from around the Doncaster, Eastleigh, Hinksey, Hoo Junction, economy. globe by the efficient and reliable Freightliner Millerhill, Toton, Westbury, Whitemoor and The refinery is supported by efficient and container trains from Southampton via its Tyne). reliable rail container services, operated Cardiff terminal. This daily service enables businesses like Peacocks to locate their major Freight operators provide a wide range of by Freightliner, a subsidiary of Genesee & Wyoming Inc. (G&W), via their Cardiff rail distribution centres near to the rail hub, other engineering support which are vital to knowing that the service is not only reliable, keep the network running smoothly including terminal. Each year, around 3000 containers a year of Nickel Oxide Mattes are delivered to but is producing 76% less carbon than the rail milling, snow clearance and rail head equivalent moves by road. treatment trains. the Vale site using rail.
20 Rail Freight: Delivering for Britain Case studies 21 Case studies Case studies
Case study 4 - Supporting the GB Railfreight therefore invested • Stop/Start technology automatically shuts The two warehouses provide 11,800 m2 of delivery of major infrastructure heavily in workforce hiring, training and down the diesel engine after 10 minutes covered space for steel products, currently accommodation, while being able to under set conditions reducing fuel and serviced from the ports of Immingham, Hull and projects demonstrate flexibility in the allocation of emissions further. Boston. GB Railfreight was contracted on the Crossrail its employees. GB Railfreight, has retained • Reduced energy consumption through Imported steel accounts for 61% of UK demand project in 2012. Its involvement in the western 23 of the temporary workers recruited for highly efficient electrical traction systems for steel, this is set to rise with increasing tunnels excavation, between Royal Oak Portal the Crossrail project on a permanent basis. utilising IGBT technology. pressure on domestic manufacturing. DB Cargo and Farringdon, helped move several million Among those who stayed, several have moved UK is the largest mover of steel within the • Electric (rheostatic) braking to optimise tonnes of material to Northfleet, from where on to different jobs within the company, UK, aiding its customers with tailored end-to- energy and reduce component wear. it was shipped to the natural bird reserve of gaining further skills as trainee train drivers end solutions through just-in-time delivery or operations ground staff. Those who left Wallasea Island. This required 2–3 trains per Class 88 Locomotives and rail to road loading. DB Cargo UK has a day each with up to 2,000 tonnes of spoil. have learnt skills making them employable by strong history in servicing the Steel Industry in other companies in the UK, particularly within • Electric (regenerative) braking back to the In the next phase of support, GB the UK from its site in Wolverhampton since the railway industry. OHLE. Railfreight supplied heavy haul trains to 1969. Nearly 50 years on, Wolverhampton take construction material (tunnel lining • Energy metered on-board the locomotive Steel Logistics Centre is still of huge strategic segments, signalling, concrete, long-welded for monitored energy consumption. importance to both the steel industry and rail freight. rail, etc) into the tunnels. For 2.5 years, GB • Last mile diesel engine operations or Railfreight provided 3–4 locomotives, wagons longer journeys with light loads. The centre allows for direct connections and staff. from Britain’s ports through to domestic In the final phase of support, GB Railfreight Case study 6 - Discover the UK’s manufacturers and plays a vital role in many provided up to 35 shifts per day in support of biggest mover of metals supply chains, offering an environmentally ground operations in tunnels and at surface There is a rising demand for warehouse capacity friendly alternative to road. Every train delivery yards. This required a pool of up to 55 people and logistics solutions for steel in the UK. DB into Wolverhampton removes an estimated 76 to supply the 24-hour a day, 7 day a week Cargo UK has responded to this by investing HGVs from Britain’s roads. operations required. £6 million at Wolverhampton Steel Logistics The steel moved from Wolverhampton GB Railfreight hired approximately 40 new Centre to more than double the size of the warehouses is crucial to key manufacturers, employees as temporary workers on the facility. This is one of the largest investments in it supplies several industries including car Crossrail project, including 15 who were the rail freight industry within the past 5 years. manufacturing. DB Cargo UK’s involvement recruited and put on a training course at a Construction began in November 2017 and does not end when the steel reaches the week’s notice. These new employees had to Case study 5 - Investment in was completed by October 2018, with the first manufacturer, indeed when the vehicle is be trained so that they could work safely in an environmental benefits official delivery testing on 24th October 2018. finished they transport it from the factory door to international cargo ships ready for export. operational environment. DRS has invested in new Class 68 and Class The steel logistics centre receives imported In view of the heavy involvement of the 88 locomotives. These locomotives include a steel from some of the world’s largest steel staff in the Crossrail project, GB Railfreight range of features to reduce their environmental companies including Arcelor Mittal, Tata Steel accommodated many of its employees impacts as outlined below. and SSAB. The newly developed centre has strategically allowed Arcelor Mittal to increase working on the construction sites in 12 Class 68 Locomotives apartments nearby – instead of asking them its volume in the area in excess of 40%. to travel on a daily basis – thereby enhancing • Modern fuel efficient and reduced emission The centre has the ability to store some 48,000 the well-being, as well as the productivity, of diesel engines EUIIIA & EUIIIB. tonnes of steel – the equivalent of 3,324 coils. the workers.
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