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Rail Freight Worth More Than £1.7Bn to UK

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Rail Freight Worth More Than £1.7Bn to UK 130 July 2018 NEWSHelping ensure a sustainable future for UK rail freight www.rfg.org.uk Rail freight worth more than £1.7bn to UK Huge contribution of rail freight sector P.3 acknowledged in new industry report Freightliner and One The rail freight sector as a whole at over £60 for each and every house- sign new intermodal delivers benefits worth more than hold. Working together the rail freight in- deal £1.7bn each year to the UK economy, dustry and its customers are continuing to according to a new report published by invest and develop new services to further the Rail Delivery Group (RDG). increase these benefits.” The data reveals the extent to which rail In the report compiled by consultancy freight is contributing to the future prosperity KPMG, RDG said that each year the rail of the country by reducing road congestion, freight industry carries goods worth more supporting the delivery of infrastructure and than £30bn for its customers, from whis- in lowering regional imbalances. kies, cars and clothing to cement, stone and oil, including transporting more than Other benefits, which arise through pro- one in four of the containers that enter and ductivity gains to freight customers and exit the UK via deep sea ports. P.10 environmental gains, are widely distribut- AV Dawson wins ed across the country but with the North of Paul Plummer, CEO of the RDG, said: major new British England, Midlands and Scotland seeing the “Working together, the partnership railway Gypsum deal highest levels. stands ready to do more to increase the benefits that rail freight is delivering for Brit- Welcoming the report’s publication on 7 ain. As we prepare to develop new trading June, Maggie Simpson, RFG Executive relationships outside the European Union, Director, said: “This work by the RDG high- we can build on the £30bn worth of goods lights the very significant benefits that rail carried by rail freight, connecting more freight is providing to the UK each year, Continued on page 3. P.11 A tribute to industry stalwart Jim Clark P.13 Rail freight’s Rail freight sector gathers to celebrate Powerhouse Potential Tony Berkeley’s retirement Article and gallery on page 4. RFG News July 2018 Executive Director’s Update: Maggie Simpson email your comments to [email protected] have a practical and deliverable plan for next March is palpa- Rail mustn’t get bly clear if the goods are to keep moving. RFG continues to work with Government particularly on cross border traffic, and forgotten amid we hope that the current political turmoil does not further delay the necessary focus on a pragmatic solution. Brexit turmoil Elsewhere, the passenger railway is never far from the head- By Maggie Simpson, Executive Director, lines with ongoing disruption to timetables in the GTR and Rail Freight Group (RFG) Northern franchises. Although freight is not directly involved in these problems, the consequential actions mean that some What a great day we had celebrating Tony Berkeley’s 21 freight services are being affected, and that Network Rail’s years as RFG Chairman! The glorious Kent countryside regulated freight performance has declined. The freight op- looked stunning in the sunshine and we were treated to a erators are working hard to make sure that freight timetabling delicious lunch as we travelled. It was great that so many is a priority focus alongside passenger, and RFG has written of our members were able to join us, along with many to ORR as part of its inquiry into the débâcle, setting out the people who have supported us over the years, including concerns of customers. those who have been RFG Board Members under Tony’s chairmanship. Finally, we have published some new position papers (below) on why rail freight must be a core part of the north Transpen- You can read more about the day on page 4, and our thanks nine upgrade. RFG, along with the operators, has been rep- again to GB Railfreight (GBRf), and all those who helped to resenting the needs of freight customers in this project over sponsor the day. Tony will officially stand down at our Autumn the last two years but we have recently become concerned AGM and the Board will announce a new chair at that time. over suggestions that the project might be scaled back or de- Meanwhile the RFG team continues to work as hard as ever to scoped, to the disadvantage of freight growth. This would be make the case for rail freight across the policy agenda. There unacceptable and we have working to highlight the demand is certainly plenty to do! case for the route and the necessity of ensuring a suitable upgrade is provided for freight and passenger users. On Brexit we have seen a recent upturn in the messaging from businesses concerned over the direction of travel of the As you will see from this newsletter, these important policy ar- negotiations. The Freight Transport Association (FTA) put eas are set against continued market appetite for growth and out a strongly worded statement highlighting the absence of new services, and it is good to see so many stories of new de- progress on the critical issues that the freight industry faces, velopments. We are always pleased to include news items or sentiments that we would support. Regardless of what one articles from members so please do get in touch if that would believes the right future relationship should be, the need to be of interest. Meanwhile, enjoy the summer holidays. • trol period. Although we need to understand the detailed Call for certainty on future impact on different markets, this should provide a stable framework for the next five years. We are however dis- digital freight funding appointed that ORR has chosen to increase charges for biomass traffic. RFG has welcomed the launch of Network Rail’s Digi- tal Railway Strategy, which aims to ensure that all new “In the longer term, Network Rail must now deliver on its effi- trains and signalling are digital or digital-ready from ciency targets so that the potential for further price increases 2019 onwards. It cautioned however that without cer- in CP7 is reduced,” she added. tainty of future funding freight risks being left behind in • this revolution, delaying delivery of benefits across the whole network. Transport Committee Digital railway is a key enabler of future rail freight growth, Inquiry into Freight & Brexit delivering improved capacity for new services, better relia- bility and enhanced information for freight customers. Digital RFG was pleased to submit evidence to the ‘Transport signalling should also facilitate quicker and cheaper connec- Committee’s Inquiry into Freight and Brexit’. There can tions to new freight interchanges and terminals, bringing new be no doubt that Brexit is a very significant event for all users to the rail network and enabling a growth in modern in the freight sector, with ongoing political uncertainty in rail-linked sites. • many key policy areas. Within the RFG membership some companies are con- ORR’s Draft Determination cerned at the potential impact, others see new opportunity, but all are united in the need for much greater clarity to ena- of Network Rail ble them to make the necessary changes in their businesses ahead of the exit date. Although the potential for a transition Commenting on the Office of Rail and Road’s (ORR) Draft period is welcome, the need to confirm the final requirements Determination of Network Rail, Maggie Simpson, RFG’s for future trade arrangements remains a barrier to effective Executive Director, said: “We are pleased that the Office planning and implementation of the necessary business of Rail and Road has listened to the significant concerns changes. of rail freight customers and operators, and proposed to limit the increase in freight charges over the next con- Click here to read the response in full. • 2 RFG News July 2018 News in brief: • DB Cargo has launched its 2019 calendar compe- tition, inviting everyone to submit their best DB freight photos. For more details go to the Twitter hashtag #DBCalendar- Comp or email them at comms@deutschebahn. com • AV Dawson has signed an Armed Forces Bronze Freightliner signs new intermodal Covenant, joining a call to encourage more logis- deal with Ocean Network Express tics businesses to support Freightliner has signed a new intermodal benefits from a significant reduction in car- former military personnel contract with the newly formed contain- bon emissions and we can continue to pro- with careers in the sec- er shipping company, Ocean Network vide the high level of service that our cus- tor. The support comes Express (ONE), a joint venture between tomers expect from us.” in various forms including MOL, NYK and K-Line. working with the Career Adam Cunliffe, CCO of G&W’s UK/Europe Transition Partnership in The new deal represents some 118,320 Region companies, added: “I am delighted order to establish tailored miles each day removed from UK roads that Freightliner has been awarded this sig- employment pathways for to rail, reducing emissions by some 67%. nificant contract, recognising our positive service leavers. ONE will also save 180 tonnes of CO2 per track record of performance, reliability and day on inland transport, representing a 13% scale of delivery. Having previously worked • David Noyes, former improvement compared to when the ship- with all three Japanese shipping lines, we CEO of Cunard and senior ping lines were operating independently. look forward to continuing our close work- director at BA, has joined ing relationship with our ONE colleagues Network Rail’s Board as Derek Wakeling, Product and Network Direc- and to making a positive impact on our en- a non-executive direc- tor at ONE, said: “With ONE and Freightliner vironment, as well as easing congestion on tor.
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