DB Cargo Signs New 10-Year Deal with Brett

144 NEWSHelping ensure a sustainable future for UK rail freight November 2020

DB Cargo signs new 10-year deal with Brett New sand and gravel deal with Brett Aggregates will remove even more lorries off the roads P.5 the UK’s already congested road network. DB Cargo UK and Brett Aggregates, one of RSSB ‘in dialogue’ the UK’s largest independent producers of We’re proud of our partnership with Brett and wth freight event sand and gravel, have signed a new 10-year look forward to delivering safe and reliable agreement. DB Cargo will transport millions rail services for them for years to come.” of tonnes of sea-dredged products, primarily for the construction sector, every year from Tom Longland, MD of Brett Aggregates, added: Brett’s marine aggregates terminals in “The Brett Group has recently opened a new Ipswich, Cliffe and Newhaven. marine aggregates terminal at Newhaven Port with access to over 50m tonnes of consented DB Cargo UK’s Head of Sales Roger Neary marine aggregate. This new agreement with DB said the deal further cemented the company’s Cargo enables joint plans for further growth in relationship with Brett, which was founded on rail freight from Brett marine aggregate terminals strong teamwork and collaboration. A great and the development of further urban rail P.7 example of this, he said, was DB Cargo’s recent terminals in London. It builds on the significant Cemex transports 2m work with Brett and Network Rail, which saw investment made by Brett in its new marine tonnes by rail the first freight train in almost 25 years transport terminal at Newhaven, capacity enhancements product out of Newhaven Port. at existing terminals at Cliffe and Ipswich, and concrete plant at Wembley, which will supply He said: “Rail freight is the most economic and the London and South East construction market environmentally friendly means of transporting by rail.” large volumes of aggregates, with each train taking the equivalent of 76 lorries off Continued on page 2 .

P.11 HS2 Materials by Rail tops Wascosa wins Network Rail wagon RFG’s AGM agenda deal Article on page 5.

P.15 RFG elects Neil Sime as Chair for 2021. P3 Events 2021: New calendar for events and webinars Nov 2020

RFG Director-General’s Update

global carbon management standard PAS2080 (details on page RFG welcomes 9), partly helped by their commitment to sustainable logistics. Later phases of HS2 will also be able to use rail-based its new Board logistics, starting with Phase 2A which is close to having all of its powers confirmed. Other major schemes, such as Northern members Powerhouse Rail, also present opportunities. And it was good to see that the consultation on Sizewell C power station which was By Maggie Simpson, issued last month makes a commitment to moving 40-60% of Director-General materials by rail or sea. These are long term opportunities, and Rail Freight Group (RFG). it is rewarding to see them start to move into delivery. As we move towards the year end and the end of the Brexit Welcome to the latest edition of RFG News. At our AGM transition period there are a great many areas of change for recently we were pleased to welcome four new Board businesses to get used to. The majority of them are not specific members, Liam Day, Peter Graham, John Hall and Geoff to rail freight, but to areas such as imports and exports, customs, Lippitt. The Board have also announced that Neil Sime of employing staff from outside the UK, and many other areas. If Victa Railfreight will be RFG Chair for the year ahead, and you have not already got your plans in place, there are details Andrew Harston of ABP will serve as Vice Chair. You can online here Brexit transition - GOV.UK (www.gov.uk). A number read all the details on pages 3 & 4. of specific areas that are relevant to rail freight are still being After the AGM, we were pleased to host a webinar on the HS2 progressed and are expected to be concluded shortly. Please materials by rail programme, which has moved from concept do get in touch if you have any specific questions. into reality with the first trains arriving on site in Birmingham The RFG continues to be busy, as we head to the end of the over the summer (details on page 5). The product delivered year both in our campaigning works and our events programme. at Washwood Heath will be used in the early piling works to Look out for the webinars running in December and into the support construction in the Birmingham area, and is the start new year and do join in if you can. We are busy looking at the of a major programme of rail logistics to support the project. At events programme for next year, and hope to have some ‘real’ peak around 20 trains per day will operate with a combination in-person events if the situation permits, alongside our virtual of tunnelling spoil and materials delivery across the route. This programme. is excellent news for the rail freight sector, particularly given the overall economic uncertainty expected next year. It is also If you want to speak about a project or a development that would good news for HS2 who have recently announced that they be of interest to our members please do get in touch. • have become the first transport project in the UK to achieve the

Continued from page 1. and securing the long-term freight use of the site. The project rejuvenated redundant infrastructure to give the port a new lease In September, Brett Aggregates and Network Rail won the RFG’s of life after lying dormant for 30 years. ‘Project of the Year’ award for the marine terminal at Newhaven Port, East Sussex, which opened earlier this year. The remodelling of old rail sidings had resulted in a railhead serving a new quayside processing facility for sea-dredged Network Rail and Brett Aggregates worked together to re- aggregates. Sand and gravel brought in by ship are processed establish Newhaven Port as a key part of the rail freight then loaded onto trains for distribution to construction sites in network, enabling essential materials to be transported by rail Sussex, London, and across the South East. • 2 Nov 2020 News in Brief

• RFG’s Director-General Maggie Simpson OBE was recently published in Freight Industry Times addressing the key issues around the end of franchising and the process of rail reform. Read the article here. Across Europe, research is underway to develop digital automated couplers. These have the potential to modernise wagons and transform operations, yet equally raise challenges for the UK market. Join our webinar to discuss and debate the • RSSB has published potential, the developments and the next steps for the UK. the latest issue of its quarterly Right • Introduction – why EU pushing this, TSI changes and what it means for UK Track magazine, which Steve Taylor, General Manager, Rail Wagon Association (formerly PWF) includes news on some of • Engineering aspects of digital couplers, what they can do/fitting to new build the key health and safety John Brown, Sales Director / Kurt Vetter, Head of Engineering, Greenbrier concerns that impact the • Challenges of Retrofitting railway. Click here for a Mitch Town, Principal Consultant / Stewart Kenworthy, Deputy Business Manager, copy. Ricardo Rail Ltd • Operator’s perspective – the benefits of DAC • A new Small Business Neil Ethell, Head of Operations and Service Delivery, DB Cargo (UK) Research Initiative (SBRI) competition is This webinar is held jointly by RFG and the Private Wagon Federation and is open to any being funded by HS2 members of either body. For more information contact [email protected] Ltd. Its aim is to deliver Register in advance for this webinar here. After registering, you will receive a confirmation innovation that will drive email containing information about joining the webinar. • project efficiencies and process optimisations during the design and construction phase of HS2. A recording of the has been elected Vice-Chair. The election for competition briefing RFG elects Neil Sime these positions takes place each year, with all can be accessed here. qualifying Board Directors eligible to stand. Applications need to be in as its new Chair by 11am on 16 December Neil said: “I am delighted to be appointed to the 2020. Rail Freight Group is pleased to announce role of Chair of the Rail Freight Group for the that its Board has elected Neil Sime to be next 12 months. Despite the current challenges • RFG was pleased its new Chair for the coming year. Neil is the surrounding Covid-19, it is an exciting time for to respond to the Managing Director of Victa Railfreight and the rail freight sector, as more businesses look Government’s consultation over the past two years has served as Vice- to move their goods off of the roads and onto on Planning for the Chair of the RFG. the rail network. The RFG’s role has never been Future, outlining the more important in tackling the current issues critical role rail freight has Neil has been a long-standing supporter of the such as the decarbonisation of the transport played throughout the group and has sat on the Board since 2003. sector and in helping the Government meet its Covid crisis . Click here to He takes over from Ken Russell, Director at environmental targets. I look forward to helping download the response. John G Russell, who has served as Chair since carry the debate forwards and supporting RFG 2019. Members.” • The Freeports bidding process is open for Andrew Harston, Regional Director, Wales RFG is also pleased to welcome new Board applications, with the view & Short Sea Ports, Associated British Ports, members, voted in at its recent AGM: Liam to create at least seven Day, GB Railfreight (GBRf); Peter Graham, new Freeports. The first Freightliner; John Hall, Davis Wagon Services are expected in 2021, as and Geoff Lippitt, PD Ports. part of at least 10 across the whole UK. It is hoped RFG Director-General Maggie Simpson OBE, the new hubs will create said: “I am delighted to welcome both Neil and thousands of jobs and Andrew to their new roles as Chair and Vice- boost growth. Those Chair of the RFG. They both bring with them granted Freeport status years of experience in the rail freight, ports and will benefit from generous logistics sectors and I very much look forward tax reliefs, simplified to working them. I would also like to welcome customs procedures our new Board members who will each add and wider government their personality and wide range of experience support. Click here for to the group.” • details. 3 Nov 2020 Please welcome the RFG Board for 2020/21

RFG is delighted to welcome its new Board for the next 12 months. The Board will play a vital role in helping shape the direction of the Group and we look forward to working with them and utilising their diverse and extensive knowledge of the rail freight and supply chain sectors. Alongside Director-General Maggie Simpson OBE, we are delighted to welcome: •

Neil Sime, Andrew Harston, Simon Blake, Managing Director, Regional Director, Wales & Short Sea General Manager - Midlands Rail, Victa Railfreight. Ports Aggregate Industries. Associated British Ports.

Rob Brook, Liam Day, Peter Frost, Head of VTG Rail UK. Commercial Director, Director, GB Railfreight. Kilbride Holdings.

Mike Garratt, Chris Geldard, Peter Graham, Chairman, Geldard Consulting. Rail Strategy Manager, MDS Transmodal. Freightliner.

John Hall, Geoff Lippitt, Ken Russell, Managing Director, Chief Commercial Officer, Director, Davis Wagon Services. PD Ports. John G Russell .

Chris Swan, David Turner, Martin Woor, Head of Rail, Rail Director, Senior Manager, Tarmac. Malcolm Logistics. Hutchison Ports UK.

4 Nov 2020 we needed to work on it to establish if the tonnes of excavated material from the RFG’s AGM & MBR programme had viability and could Euston approaches – equivalent of up to play a significant role in the construction 300,000 lorry movements. webinar on HS2 of HS2.” Rail Stone Solutions, specifically set up by materials by rail The new paths are in the process of GRS Group in 2016 to work on HS2 and being risk assessed by Network Rail’s East West Rail, has supply agreements programme geographical routes, with, in some cases, with Tarmac and Aggregate Industries and upgrading or preventative maintenance is working with GB Railfreight to ensure The RFG Annual General Meeting work being done to ensure the tracks deliveries can be made on schedule, said was held online on 11 November. It are certified RA10 capability to carry the Ilija Radomilovic, Commercial Director. was followed by a webinar examining heavy aggregate products. “We were asked to supply 95% of the role of rail freight in helping to aggregates by rail but that is not possible construct HS2. Andrew Graham, Conventional Rail as we were also asked to use as many Interface Manager, HS2 Ltd, explained SMEs located near the route as possible. The development of the Materials By Rail that 15,000 freight trains will haul 10 So, of course, shorter deliveries are made (MBR) programme for the construction of million tonnes of aggregate to HS2 by truck.” HS2 has involved a new way of working construction sites, but that in the south at for Network Rail and an innovative method the moment the predominate movement He estimated that of the 15m tonnes of of allocating paths, says Nick Coles, Head is of spoil from the Euston area. “We crushed rock needed for Phase 1, about of Strategic Capability, Freight at Network are committed to moving as much as 65% will be moved by rail from quarries in Rail. “We worked much more closely possible by rail,” he said. One example is England, Wales and Scotland to railheads with the main civil works contractors and the rail logistics hub at Willesden, which along the route. infrastructure service providers than we will handle up to eight freight trains a day have in the past,” he said. between 2020-24. The trains will deliver The first train load of aggregates to HS2 equipment and construction materials and ran from Hindlow Quarry, Derbyshire to Many of the paths needed have been remove material excavated by the tunnel Washwood Heath railhead in Birmingham obtained by Legge Infrastructure Services, boring machines digging the tunnels east in August, staring a flow of two trains a day which will novate them to the freight to Euston and west to the outskirts of the (instead of 150 HGV movements). operating companies as required. capital. Please click here to view the recording of “This has enabled us to ensure the paths The vast 150,000 sq metre rail hub is the event. Passcode: @^t6+gb5 • are already in the timetable. They are expected to process more than six million subject to change and procurement, but

standards. The remaining three will be delivered throughout GBRf adds to its loco fleet 2021. The first two are low-geared heavy haul 60mph locos, while the remaining three are 75mph. GBRf has announced an agreement to bring five Class 66 locos from Germany working with Beacon Rail The locos will be delivered into GBRf service commencing Leasing. early April 2021 with the programme of conversions being undertaken by EMD at their Doncaster and Longport facil- The first two, classified as 29004/29005 have been deliv- ities, this will include the fitting of air conditioning, sound ered to EMD Doncaster ready for conversion to UK proofing, cab improvements, and new cab double glazing. • Nov 2020 ernment’s vision for the future of Britain. He also welcomed the Decarbonisation and Crossmodal Future of UK Freight Strategy, due for publication next Spring. The Minister fell short of putting specifics around freight’s heroic Covid-19 increasing freight access to the network or increased train paths but did say Government was committed to the modal shift of effort top agenda at RFG freight to rail and it would play a key role in the ambitious Trans- port Decarbonisation Plan (to be published later this year), which Conference 2020 will steer the future freight strategy.

Rail Minister Chris Heaton-Harris MP has reaffirmed the “We remain committed to the modal shift of freight, as we aim Government’s commitment toward rail freight and outlined to improve the environmental performance of the entire freight the crucial role it will play in helping decarbonise the UK industry,” he said. “We continue to support the need for an ex- economy. panded network for Strategic Rail Freight Interchanges too, so the industry will be able to reach its full potential going forwards.” In a recorded message at the 28th Annual Rail Freight Group He thanked RFG for its hard work in feeding into the debate and Conference, held online on 14 October, he laid out the Govern- to its members for their support. ment’s vision for the future of freight transport, making it clear that rail would play a key role in cutting carbon emissions across the The conference was an excellent opportunity to not only recog- country and helping the UK meet its 2050 environmental targets. nise the challenges the sector has faced but also the huge suc- He said: “I want to offer my heartfelt thanks for your incredible, cess of rail freight this summer. Modal shift to rail is seen as a big almost heroic, response to Covid-19. Your efforts during this time way of decarbonising transport and an opportunity for rail freight. have kept critical goods like medicines and food on the move up This formed a key theme throughout the conference. Also tackled and down and across the country. Your hard work and dedication were the issues around the Covid-19 pandemic, port connectivi- during this uniquely challenging time has been outstanding.” ty, HS2, rail reform, Brexit, and the economy.

He went on to say that rail freight had the potential to add “signif- Maggie Simpson OBE, Director-General of the Rail Freight Group icant economic and environmental benefits” and that “rail freight said it was right that the sector be applauded for its incredible has a key role to play in our recovery from the crisis.” Rail freight work during the pandemic: “Today’s conference has highlighted has bounced back quickly from the initial impact of Coronavirus the real opportunity for rail freight to make a difference to the UK and according to Network Rail is running at 92%-93% of normal economy and environment as we move forward into post-Cov- levels. id recovery, and with new global trading arrangements. Despite the challenges we face, the discussion today shows the sector’s The Minister has become a great advocate for rail and as MP for commitment to grow and develop, and to embrace change in Daventry, the home of DIRFT, he spoke in detail about his com- support of our customers’ needs.” mitment to modal shift and the huge opportunities for the growth of the rail freight sector. He said rail would be at the forefront Read the full meeting report here. of change and had a crucial role to play in delivering the Gov-

Can freight locos run on steam?

Matt Candy, CEO of Steamology Motion Ltd, is keen to engage with the rail freight industry to establish whether his innovation to run freight locos on steam – by turning water into power – is feasible. He asked attendees at RFG’s latest webinar in its decarbonisation series to help him discover if the concept is fundamentally flawed or highly applicable – for mainline operations or as part of a bimodal solution. “If this does not work, we want to fail early and fail fast,” he said. Candy is tasked with reaching three key deliverables by March next year: Working demonstrator of high power Steamology has received government funding through zero-emission turbine connected to industrial dynamom- Innovate UK under the FOAK (First of a Kind) 2020 Rail eter, Class 66 packaging design, Business, certification Decarbonisation programme and is developing high and standards plan. power zero-emission steam turbine electric solutions to offer an alternative to diesel for Class 66 freight locomo- “We are looking for a vehicle to use as a demonstrator. tives. This technology is intended to current rolling stock Maybe all the Class 66s are busy, but if someone can beyond 2040 or could be used as part of new locomo- esuggest something else, we would be very interest- tives in future ed,” Candy explained. He recognises there are issues which have not yet been developed related to storage “The combustion of hydrogen in an oxygen environment of hazardous gases (hydrogen and oxygen), range and to create hot steam is very scalable,” he said. “It emits time taken to ‘refuel’. And he suggests that maybe this no Nox, Sox, CO2 or particulates. It is quiet, low main- technology could work as part of a bimodal solution. tenance and needs no toxic or scarce materials. But, Click here for the full slide deck. importantly, we need to understand that it makes sense from a commercial point of view.” 6 Nov 2020

Additionally, Cemex UK was able to reach work this year has enabled us to increase Cemex transports this milestone tonnage a full week ahead efficiency across our operations and in of its 2019 record in spite of the challeng- turn grow the amount of transportation 2m tonnes by rail es posed by the Coronavirus pandemic that can be delivered by rail, presenting and saves 100,000 and its impact on the market. considerable benefits to both the environment and our customers. road movements The 2m tonnage was completed over 1200 journeys, the majority of which saw “This achievement would not have been The commitment by Cemex to sustain- aggregates taken from Cemex’s Dove possible without the commitment and able transport methods has enabled Holes Quarry in Buxton, Derbyshire, to lo- dedication of our teams. Despite the many the building materials solutions sup- cations across the UK. challenges posed by the Coronavirus pan- plier to transport 2m tonnes of aggre- demic, our rail depots have all remained gates across the UK by rail this year. David Hart, Cemex’s Supply Chain Direc- open throughout the year and we want to tor for UK & France, commented: “Improv- take this opportunity to thank our employ- This offers considerable benefits to the ing the sustainability of its business is one ees, who are a key part of the business’s environment; saving over 100,000 road of Cemex’s key global priorities, and the success.” • movements and 12,500 tonnes of CO2 supply chain plays an integral role in this. compared to using trucks. “Investing over £600,000 into our rail net-

Teesport Commerce Park. The advanced project, which will PD Ports secures £230m for be named the Teesport Renewable Energy Centre, will sit new Teeside power plant on a nine-acre footprint and create between 250-300 full- time jobs during construction, with a further 40 permanent PD Ports, owner and operator of Teesport, has entered jobs created when the plant becomes operational – which is into an agreement with Wentworth Clean Power (WCP) expected to be in the second half of 2024. to bring a £230m, state-of-the-art, waste-to-energy project to Teesside. The plant, when complete, will have an annual capacity of 300,000 tonnes of feedstock and deliver an electrical output WCP, developers of advanced waste-to-energy projects in of 30 megawatts – enough to power up to 27,000 homes the UK, together with its partners, will develop, finance and with the potential to provide decentralised energy to existing deliver the project on Dockside Road, to the south of and planned industrial users via combined heat and power.

Network Rail Freight est. Please contact [email protected] for info. Strategy Position Paper RFG LinkedIn Group reaches Network Rail is leading work to develop a new freight strat- 1000 followers egy which builds on the previously established forecasts and analysis and will form part of the ‘Whole Industry Stra- A huge thank you to everyone who has contributed to the tegic Plan’ which DfT have asked Network Rail to develop. RFG’s LinkedIn Group so far, which has now grown to 1,021 members at the time of writing. A briefing paper has been provided by Network Rail, and is attached. In particular, there are a series of workshops on Thank you to everyone for engaging with us and for helping us specific themes over coming weeks which may be of inter- grow our communications function. • 7

Nov 2020 “Rail freight will also play a key role in helping to decarbonise the Private Wagon Federation UK economy and RWA will be vital in providing the expert knowledge needed to support the case and in presenting the evidence relaunches as Rail Wagon of wagon development that will underpin the future benefits and Association cost effectiveness of the mode. The rail freight sector is growing all the time, and with increasing interest from sectors traditionally Expanded member-based trade body will better reflect the reliant on road transport, the RWA will now be better positioned changing needs of wagon owners and operators. to reflect the needs of its members and provide the critical expertise needed.” The Private Wagon Federation (PWF) has rebranded and incorporated to become the Rail Wagon Association Ltd, in Steve Taylor, General Manager of the RWA, went on to say: “The order to better promote the development of the latest freight incorporation of the new company marks a significant develop- wagons and provide the sector with the critical focus it ment in the story of the Private Wagon Federation. Maintaining needs. our reputation within the industry for engineering expertise is very important to us and so we will continue to use our strapline; ‘Put- The RWA recently held its first general meeting, with member ting Wagons First’ to mark this heritage. The PWF achieved a companies electing in the new board of directors: Colin Denman, huge amount over the years. We have played a leading role in VTG Rail; Guy Peasley, GBRf; Richard Allen, Ermewa, and Tim facilitating the introduction of the ECM (Entities in Charge of Main- Gabb, Freightliner. They will be joining the senior team: Chair- tenance) legislation and in supporting our members throughout man, Rob Brook, VTG; Vice Chairman, Les Bryant, Davis Wagon the Brexit transition. I look forward to serving the new company Services and General Manager Steve Taylor. as its General Manager and to developing the business of the RWA.” Unlike other trade bodies operating in the freight sector, the RWA is dedicated to providing an expert eye and specific focus on the Alan Bowkett, Technical Services, STVA UK, is one of the long- development and maintenance of rail freight wagons. With an est standing members of the PWF and said: “Representing the expanded membership, however, RWA backing now includes a membership of MAT Transauto, STVA and now Groupe CAT, I wider scope of companies covering: wagon users, suppliers and have been associated with the Private Wagon Federation for maintainers, with freight operating companies, support service more than 40 years. For much of that time, I have been active providers and other key stakeholders from right across the sec- as a policy committee member. I have enjoyed my association tor. with the PWF and pay tribute to the achievements and influence of this very important rail industry body. As the PWF transitions to Rob Brook, Chairman of the RWA, said: “Efficient wagons are the new corporate entity, the Rail Wagon Association, the expe- critical to the success of the rail freight sector and further en- rience and enthusiasm of its membership have never been more hance the business case for modal switch. Meeting national en- important as we meet the new challenges of an ever-changing vironmental and sustainability targets will require a greater move industry. As the RWA continues to meet those challenges, one toward rail and enabling that to happen hinges on having the thing which will not change is our joint commitment to Putting right wagon assets available to operators. Wagons First.”

“As more shippers come to realise the benefits of putting their Tim Gabb, Professional Head of T&RS Engineering, Freightliner goods onto rail, the greater the need for fully optimised and Group, concluded by adding: “RWA provides us the opportunity enhanced wagon fleets. The digitalisation of wagons is critical to to engage with other key partners in the industry to develop more the future development of the sector and unlocks powerful new effective ways of working. As a group we are able to collective- potential in providing shippers greater efficiency gains and cru- ly share best practice and contribute to standards development, cial visibility of their goods in transit. Rail freight needs to engage strengthening the voice of the wagon sector. Working together in and come together to embrace this powerful technology and an aligned and joined-up way, all key stakeholders become more RWA will play a key role in facilitating that change. effective and the wagon sector speaks with a louder voice.”

HS2 achieves global carbon management standard

HS2 has achieved the PAS 2080 global specification for managing whole-life carbon in infrastructure. Developed by the Construction Leadership Coun- cil’s Green Construction Board, with the British Standards Institute (BSI), it provides a framework for evaluating and managing carbon.

The standard recognises organisations that have strat- egies in place to reduce carbon emissions and develop more collaborative ways of working. HS2 has set a 50% carbon reduction target on assets such as tunnels, viaducts and cuttings, along with stations and railway system, to encourage the supply chain to innovate to reduce carbon. 9 RFG Opinion Welsh Government launches Consultation on a new Wales transport strategy

By Robin Smith, Wales and West Midlands Regional Representative.

On 17 November the Welsh Government launched the public consultation process for its new transport strategy for Wales, inviting responses by 25 January. Entitled “Llwybr Newydd [a New Path] – a new Wales transport strategy” the consultation document sets out the Government’s proposals for the first new comprehensive national transport strategy since “One Wales, Connecting the Nation” was published in 2008. The vision underpinning the new strategy is the achievement of At a Teams briefing to introduce the consultation draft the two “an accessible, sustainable transport system” and the strategy key themes were presented as “Climate” and “People”. The role is to be supported by nine “mini-plans” for the various transport of transport as the enabler of other benefits was stressed as modes and sectors, including “rail”, “freight and logistics” and was how the strategy delivers on commitments in the “Well-Be- “ports and maritime transport”. ing of Future Generations (Wales) Act”, passed in 2015. RFG is involved in the development of the “freight and logis- Much of the media coverage focussed on the planned major tics” mini-plan through representation on the relevant working reduction in transport emissions over the next 20 years – in group. However, we will also be submitting a response to the 2018 transport emissions amounted to 17% of total emissions wider consultation in due course and suggest that all members in Wales. Although much of the content in the Consultation draft with interests and activities in Wales also consider submitting a is centred on travel rather than transport - active travel is high- response. lighted as a key element in the evolving strategy - there is also a welcome emphasis on a holistic approach to both passenger and freight as well as to all modes : active travel, road, rail water The consultation documents can be found here. • and air.

Supplying excellent marketing, communications and public relations support to the rail freight sector.

www.railfreightpr.com Nov 2020

and the Midlands. Allowing heavy freight trains to access this £4.5m bridge upgrade for route is crucial to the success of moving aggregates on these corridors, which will only become more important with increasing Cheshire freight route volumes for HS2 and other customers.”

The Middlewich branch line has reopened following a £4.5m Quentin Hedderly, network capacity manager at DB Cargo UK Great North Rail Project investment. The railway was closed added: “We are pleased that the work to reconstruct the railway for five days so the bridges over the Trent and Mersey canal bridge in Northwich has been successfully completed in line with and Whatcroft Hall lane in Northwich could be rebuilt to the expected timescales. The replacement of this asset enables modern standards. Network Rail to restore heavy axle-weight capability to the route which will allow more freight to be transported by rail across this Michael Leadbetter, planning & resourcing director for Freightliner, line in the coming months.” • said: “The Middlewich branch line is a key route for freight traffic moving between the Peak District, the markets in the North West

holders are required to cooperate under Update to ORR ROGS Cemex further • New guidance on the ECM requirement guide to ROGS in relation to on-track machines and train invests in rail testing. ORR has updated its guide to ROGS • Additional guidance on functions of an Cemex has invested more than to improve clarity on some of the ECM £600,000 into its UK rail business this terms and requirements. These minor • Additional guidance on the role of year, to increase safety standards and updates have been made to take into certification bodies now ORR now longer reliability while providing opportunities account points that arose from the certifies ECM’s to grow and enhance service levels. last post-implementation review. The • Change to the explanation of the term updates are: ‘tramway’ in the glossary. Improvements have been made to six of Cemex’s railheads, including: Dove Holes, • New guidance on ‘responsibilities at The new guidance also includes a table Salford, Sheffield, Selby, Crawley and interfaces’ and the term ‘placing into detailing the changes made to the previ- Cambridge.In particular, nearly £400,000 service’ ous guide published in April 2018. Click was spent at the Dove Holes railhead, • Additional guidance on what is classified here for details. • located in Buxton, Derbyshire. • as a ‘mainline railway’ • New guidance on disputes where duty

DB Cargo UK appoints new Chief Financial Officer

DB Cargo UK has appointed of Deb Hardy as its new Chief Financial Officer.

Deb, who is currently Finance Director Moran Logistics, will officially join the DB Cargo UK Board in January 2021. She brings with her more than two decades of experience in managing finance, IT and procurement within the transport and logistics sector. Prior to joining Moran Logistics, Deb was Finance Director at the Japanese-owned, UK-based logistics and freight-forwarding company, Yusen Logistics (UK) Ltd. Before that she fulfilled a number of senior management roles with the Japanese global freight operator, NYK Logistics, culminating in her appointment as UK Finance Director in 2008. •

11 Nov 2020

Availability levels should improve too because the higher Wascosa signs major wagon standardization of critical components in the flex freight modular system means less complex and faster maintenance. In addition, deal with Network Rail any down-time caused by damage should be reduced because in the vast majority of cases the damage would be sustained by Wascosa has signed a major leasing contract with Network the superstructures. As these are removable, the base wagon Rail as part of the renewal of the UK rail infrastructure would remain available for use, either as a flat or with another operator’s wagon fleet. superstructure unit fitted. Repairs to the damaged unit would then easily be undertaken either at track side or at the storage The contract, which is for a total of 570 wagons, will include depot. Even in the event of severe damage, it would simply be a several hundred open box wagons of both “Falcon” and “JNA” case of loading the superstructure on to a truck and taking it to a types for site work and bulk ballast transportation but also 260 workshop for repair. sixty-foot container flat wagons which can be fitted with different types of superstructures to allow the carriage of track panels, John Smith, Managing Director, GB Railfreight: “For GB sleepers, switches, rails and loose materials. Railfreight, being able to bring the industry together to offer an efficient flexible wagon solution to Network Rail is crucial to be The wagons will all be manufactured by Greenbrier Europe able to deal with supply chain demands for the future. Equally as which itself has extensive experience in building wagons for the important is modernisation of infrastructure wagons that will last UK market. Once in service with Network Rail, the wagons will for many years. GB Railfreight are delighted to have partnered be maintained during the ten year contract by leading UK train with Wascosa to be able to offer innovative superstructures and operator GB Railfreight on behalf of Wascosa. GBRf will also be efficient wagon maintenance to Network Rail that achieves both responsible for providing and maintaining the superstructures modernisation and future wagon supply chain demands.” which were purpose designed in the UK. Specifically, three superstructure types will be produced, in the form of a modifiable • Hull-based Myton Law, a specialist rail, shipping and transport flat-deck for carrying sleepers and track panels, a drop-side top firm, advised on the deal. It has been working with Wascosa with mesh doors for transporting rails, switches and smaller for over a year to form a UK subsidiary, Wascosa UK Ltd, and items, and a bolster and stanchion arrangement for bulk short to negotiate and put in place a complex range of agreements rails. The superstructures can be interchangeably configured to including an operational lease with Network Rail, an overhaul and meet the programme requirements of Network Rail. maintenance contract with GB Railfreight, a finance arrangement for the acquisition of the wagons and English law guidance in The modular concept which is based on Wascosa’s flex freight respect of the wagon build contracts between Wascosa and system® and which is now in widespread use on the continent Greenbrier Europe. notably with chemical giant BASF and Swiss engineering group

SERSA, offers a number of decisive advantages over any Myton Law’s work on the project will culminate with the signing equivalent conventional wagon solution. of the 10-year maintenance agreement by Wascosa and GB Railfreight during November, following the signing of the lease to First of all the Wascosa flex freight system® has the potential Network Rail on October 16. The first of the wagons, which will to generate greater fleet productivity and efficiency, because be manufactured by Greenbrier in Poland and Romania, will start thanks to the different superstructures which can be fitted to any to be delivered in October 2021. 60’ container flat, the same wagon can be used to carry different types of items and equipment depending on demand. The Myton Law rail team was led by director Chris Thornes, formerly head of commercial law at DB Cargo UK before he joined Savings will also be achievable in terms of storage space because Myton in 2016 following ten years as an in-house lawyer in the the superstructure units have been designed to be stackable. rail industry. Chris Thornes said: “Wascosa is a highly regarded They can be handled from both sides and loaded or removed from pioneer in this industry, so it has been very exciting to support either side of the flex freight wagon using a container handler or them in developing this major new leasing contract, which has large forklift. This means that the superstructures can be stored involved a complex set of agreements covering finance, purchase right up to depot fence boundaries thus taking up minimal storage and leasing right through to on-going maintenance.” • space and freeing up depot space for other uses. 12 Nov 2020

Westminster Update - JR Consulting

estimated that UK economic activity will not be back to pre-pan- An end to demic levels until the end of 2022, and with lasting damage, with the Chancellor saying “the health emergency is [still with us]… transport policy our economic emergency has only just begun”. So the policy lockdown but will ambitions are there, but the scale of borrowing against Covid priorities has been massive this year, with the impact on taxa- investment money tion not yet defined. Labour’s Shadow Chancellor, Anneliese Dodds, commented really be there? that the “Northern Powerhouse Rail project has still not been approved six years after being announced”. By Jonathan Roberts, Managing Director, JR Consulting. Transport Decarbonisation Plan There has been a deluge of transport announcements during November. The 25th November saw more within the On 18th November, the Prime Minister launched a 10-point Government’s one-year Spending Review. The announce- plan for a ‘green industrial revolution’. Points 4, 5 and 6 address ments range from the strategic to the specific. transport topics, by accelerating the shift to zero emission vehicles; green public transport, cycling and walking; and jet zero At the strategic end of the scale, Chancellor Rishi Sunak (MP for and green ships. Richmond [Yorks]) has promised to revise the Treasury Green Book and change parameters to give more value to projects fur- The biggest public coverage was given to banning the sale ther away from London & South East. of new petrol and diesel cars by 2030. However the 10-point plan contains much more. The Government says “As well as The process of ranking transport, energy, schools or hospital decarbonising private vehicles, we must increase the share of investment will be widened beyond a narrow benefit-cost ratio, journeys taken by public transport, cycling and walking. We will where South East property values significantly influence the therefore accelerate the transition to more active and sustain- outcomes. The new process will help prioritise regional spend- able transport by investing in rail and bus services, and in mea- ing as part of £600bn planned public investment, and support sures to help pedestrians and cyclists.” the Government’s levelling up plan and its green objectives. “We will invest tens of billions of pounds in enhancements and Jake Berry MP, chair of the Northern Research Group of Con- renewals of the rail network, £4.2 billion in city public transport servative MPs and former Northern Powerhouse minister, has and £5 billion on buses, cycling and walking, as announced by welcomed the announcement. “It was one of the most frustrat- the Prime Minister in February. We will electrify more railway ing things I found, when I was Northern Powerhouse minister, lines; end the complicated franchising model and create a sim- was you would sort of come against this calculation that always pler, more effective system; and create integrated bus and train preferred Reading over Rossendale.” Mr Berry favours fast networks in more places, with smart ticketing, more frequent delivery of many smaller infrastructure schemes, as well as con- services, and bus lanes to speed journeys.” tinuing with bigger schemes. “We will expand rail routes around our big regional cities, includ- The Chancellor envisages £27bn of public funding for capital ing Manchester and Birmingham. As set out in the manifesto, spending during 2021-22, and has prioritised schemes in the our long-term aim is to improve public transport in city regions new National Infrastructure Strategy, which is now also pub- to make it as good as London’s, which would save thousands lished: of tonnes of carbon. In smaller places, we will improve buses, NIS link. That strategy is based ‘around three central objectives: introduce more rural on-demand services, and restore many of economic recovery, levelling up and unleashing the potential of the rail links removed in the Beeching era to give people the the Union, and meeting the UK’s net zero emissions target by choice not to drive. We will progress the Midlands Rail Hub 2050’, according to officials. scheme in Birmingham and improvements in Manchester and Leeds, alongside Northern Powerhouse Rail to improve east- It will include a new “levelling up fund” worth £4bn in England west links across the Pennines.” and £0.8bn for devolved territories under the Barnett formula. The Chancellor says any local area will be able to bid directly to Two specific commitments are: fund local projects - but they must be delivered within this Parlia- • “we will launch the first-ever National Bus Strategy, as part of ment “and they must command local support” with the local MP the PM’s £5 billion funding, integrated ticketing between oper- behind it. Local areas can bid for up to £20m for each project. ators and modes and more bus lanes, making services faster, “This is about funding the infrastructure of everyday life, a new more attractive and cheaper to operate bypass, upgraded railway stations, less traffic, new libraries, museums and galleries, better high streets.” • we will spend £500 million reopening lines and stations closed under the Beeching cuts.” Spending ‘to keep the country’s transport networks moving’ in 2021/22 totals £12.8bn, including an estimated £8bn for rail passenger services, and £4.8bn for buses, light rail, cycling, and How heavier lorries could be good for intermodal rail Transport for London. Of course, this is mostly revenue support, freight in the foreseen continuing absence of passengers because of At the more detailed end of scale, the Government launched on Covid and Government-imposed lockdowns. 9th November two consultations on having longer and heavier Overall, the Department for Transport’s settlement for 2021-22 lorries, for specific reasons. includes a £700m cash increase in core resource funding. DfT’s There has been a trial of longer semi-trailers (LSTs) for the past capital budget will rise by £600m. seven years, with a capped allocation of 1,800 vehicles. Origi- However this is against the background of the worst slump nally intended to run for ten years from 2012, the allocation was in 300 years, with an 11.3% decline in UK economic output Continued over the page. projected for 2020. The Office of Budget Responsibility has 13 increased in 2017 to 2,800 vehicles, with the trials intended to higher weight of the rail container and specialised trailer com- continue until 2027. pared with a standard curtain-sided HGV. Transport Secretary Grant Shapps is now arguing that the trials The change suggested in the consultation is specifically for in- have been sufficiently successful to justify consultation on mak- termodal freight haulage, to allow a trial for lorries to transport ing the scheme permanent, with unrestricted allocations. The heavier containers direct to or from freight trains, on around 10 reports on the outcome so far, state that the vehicles involved in routes cleared as safe for use by 48-tonne vehicles, and would the trial have saved lorry drivers 33.5 million miles and 48,000 look at whether it encouraged a shift of goods from road to rail. tonnes of CO2 – equivalent to taking over 20,000 cars off the This consultation seeks views on: road, to 2019. The results also show the trailers were involved in fewer personal injury collisions compared with standard size • a possible trial of higher maximum weight limits of 48 tonnes HGVs. (rather than 44 tonnes) for HGVs carrying intermodal freight The longer semi-trailers (14.6 metres and 15.65 metres) are par- • how such a trial might be implemented ticularly useful for volume-constrained goods and can carry 3 • how such a trial might be evaluated. more rows of supermarket goods cages on each journey compared with existing trailers. The consultations came ahead of the Government’s Transport Decarbonisation Plan Mr Shapps said: “Our freight industry keeps the country moving, delivering vital goods and services every single day – which, as we all know, has never been more important than it is now, during the pandemic. These trials clearly show the benefits for HS2 Phase 2a nearing approval business and the environment of using longer trailers. By de- Transport Minister Baroness Vere of Norbiton announced on termining the next steps to get them on our roads permanently, 24th November the Government’s statement of reasons in sup- we can benefit industry and our economy, boost safety and cut port of the High Speed Rail Phase 2a scheme (West Midlands emissions.” to Crewe). Bill. This is ahead of the Third Reading of the Bill in the House of Lords. Phase 2a will allow a complete high speed The second consultation could be more controversial, as it is to railway to be opened between Crewe and London, so covers allow a trial of heavier HGVs on UK roads, with gross tonnage the bulk of the benefits expected on the West Coast main line permitted to rise from 44 to 48 tonnes. The greater weight could corridor between the North West and the London area. Links are increase road damage levels, as road damage is proportional to set out below. the 4th power of the driving axles’ weight. Click here for a link to the written statements. However at present, heavy goods vehicles (HGVs) carrying intermodal road or rail freight have a lower maximum payload Click here for the HS2 Phase 2a PDF. • weight than HGVs carrying road-only freight. This is due to the

studies, designs and joint working between world-leading Work begins on second marine, coastal and railway engineering experts. The section from Dawlish station to the Coastguard breakwater section of new Dawlish east of the station is expected to be completed in late 2021, sea wall whilst the section between the station and the Colonnade breakwater, which will link up the new wall at Marine Parade, Network Rail has started work on the second section of will start to be built shortly after. the new, bigger sea wall at Dawlish, in Devon, which will A major aspect of this work involves the use of an innovative provide greater protection to the railway and town from eight-legged, self-contained walking jack-up barge, known as a rising sea levels and extreme weather. ‘Wavewalker’. The ‘Wavewalker’ is only one of its kind in Europe Construction of this next section of the £80m upgrade, will take and it will be the first time this type of barge has been used to around two years to complete and follows years of detailed maintain the UK rail network. • 14 Planning Update - Burges Salmon

transport links across the UK, will be undertaken and chaired Planning Update by Sir Peter Hendy. It is expected to report before the summer By Stephen Humphreys 2021. Associate Finally, for freight, the NIS includes a statement that the Burges Salmon government has announced that it will provide a full response In this month’s article we look at a to the NIC’s Better Delivery: The Challenge for Freight report number of developments in the world through the publication of a comprehensive cross-modal of planning and major infrastructure. freight strategy in 2021. This will also consider the impacts Finally, and to much fanfare, the on the freight system at the end of the transition period and Government has published its National the impacts of the COVID-19 pandemic. This strategy is Infrastructure Strategy (NIS). This eagerly awaited and it will be interesting to see how this ties sets out the Government’s future commitments to long-term in with the terms of reference of the new Hendy Review. infrastructure development, not only in England but in the UK as a whole. It aims to build Britain back greener, fairer, DCO update faster and stronger. The approach is focussed largely on The latest Development Consent Order to be granted, on 12 development in the regions and the ever present levelling-up November 2020, was to Highways England for the construction of agenda, key to driving a post-Covid economic recovery. In the A303 Stonehenge development. The scheme encompasses addition to this we look at some developments in the world of the construction of a tunnel and new dual carriageway between Nationally Significant Infrastructure Projects (NSIPs) and a note Amesbury and Berwick; the tunnel will be approximately two on changes to the consenting of battery storage developments. miles in length and remove the road and associated traffic from the Stonehenge landscape. The Secretary of State granted National Infrastructure Strategy development consent despite the recommendation of five inspectors that consent be withheld. This was predominantly The Government was expected to publish its NIS alongside the based on the view of the inspectors that substantial harm would March 2020 Budget. Perhaps unsurprisingly its publication was be caused to Stonehenge from the development and that there delayed until 25 November 2020. Its core focus is on “levelling would not be substantial public benefit from the scheme. up” the country and to introduce an infrastructure “renaissance”. It acknowledges that much of the country’s infrastructure is The Secretary of State disagreed that there would be substantial creaking, Victorian or post-War which needs significantly more harm in cultural heritage terms, preferring to rely on the view of investment if the challenges of the 21st century, such as climate Historic England who had not suggested substantial harm to the change and the consequent shift in people’s habits, are to be World Heritage Site. As the level of harm is one of planning met. The NIS acknowledges that considerable sums have been judgement, the Secretary of State considered that the proposal spent in London and the south-east and now spending should was policy compliant, offered significant public benefits and will shift to the regions. result in less than substantial harm in heritage terms. There is focus on restoring many of the railway lines lost to the This is not the first time that the Secretary of State and Beeching review (though with a £500m budget it is not clear how appointed inspectors have come to different conclusions on ‘many’ can be brought back into use). A number of these may the same issues. Often the matters in play are questions of be NSIPs in their own right (such as the recent Portishead to Pill planning judgement which need to be assessed by properly proposal) and they could be subject to the pre-application and balancing the pros and cons of the scheme in planning terms. consultation requirements set out as part of the NSIP regime Clearly the Secretary of State considered the benefits of the (more on this below). There is also “feasibility funding” available scheme would be significant, including to the wider setting of to see whether other schemes beyond the two schemes noted Stonehenge when the scheme is constructed and allowing the in the NIS can viably come forward and a number of these are public to appreciate the Stones in a landscape which does not noted in the NIS. The NIS also outlines the proposal to set include the A303 running through it. up a National Infrastructure Bank to help fund and co-invest Battery storage infrastructure initiatives (available for use by Metro Majors and local authorities and HQ’d in the North). A final point worth noting is the removal of the development of battery storage projects from the NSIP regime. From 2 The Government provides that it is committed to undertake December 2020 planning legislation will be relaxed so that bold action to meet the 2050 net zero targets, continuing to developers no longer need to go through the NSIP regime in decarbonise the transport networks (along with the power/ order to develop electricity storage projects. Until now, battery energy industry) and this work is to tie in with the DfT’s storage projects over 50MW in England and over 350MW Transport Decarbonisation Plan which was published in March in Wales required a Development Consent Order under the 2020 (and it is not clear when the proposals/policies in respect Planning Act 2008. From 2 December 2020 these projects will of this are to be published). The Government also wants to instead be consented under the Town and Country Planning accelerate delivery of infrastructure projects and will include Act 1990 regime. The changes were recommended following speeding up the planning system and better use of technology; a Department for Business, Energy and Industrial Strategy this will entail changes to both the Town and Country Planning consultation on the proposals in spring 2019 and aim to boost the Act regime and the DCO/NSIP regime under the Planning Act battery storage sector, increasing investment and creating jobs. • 2008. Interestingly, in respect of NSIPs, the NIS provides that for some projects the ambition is to reduce the determination period for these major infrastructure projects by 50% by 2023 (I Contact am looking forward to see the details on this, particularly given Stephen Humphreys, the recent delays with Secretary of State determinations). Associate Burges Salmon Investment figures are proposed to be set at £27bn in 2021- [email protected] 2022 with record levels of investment in the strategic roads and www.burges-salmon.com rail networks. Interestingly, the NIS announced that a Union Connectivity Review, which will look at options to improve 15 RFG Events calendar RFG Events Calendar 2021

The Rail Freight Group is delighted to announce its 2021 event calendar dates. Despite the obvious disruption caused by the pandemic, the RFG has continued to adapt and offer a range of diverse and important events. Next year we hope to not only continue to provide online presentations but we hope to re-introduce physical events as well where the national situation permits. For now, please feel free to make a note of the dates where published.

Please note, all dates stated are provisional. For confirmed dates please contact [email protected]. Everything we do is in line with government guidance.

9 February Evening online event in lieu of member’s party 24 March Scottish Meeting, online May/June RFG BBQ

22 - 24 June Multimodal Exhibition, 23 June Group meeting at Multimodal. 9 September Awards Dinner, Latimer Estate. October (TBC) Waterfront Conference. 10 November AGM and Group Meeting.

8 December Xmas Lunch, Royal Lancaster.

16 Nov 2020

Vision set out for The vision has been set out jointly by business and local government leaders from Essex, Suffolk, and the wider region, new Freeport East and work is now underway to develop a detailed bid following the publication of the Government’s Freeports prospectus last week. Public and private sector leaders have set out their joint vision for a new freeport on the East Coast. Freeport Clemence Cheng, Executive Director of Hutchison Ports and East would focus on the Port of Felixstowe and Harwich Managing Director of Hutchison Ports Europe, added: “The International Port – both owned by Hutchison Ports. combination of the ports of Felixstowe and Harwich offers the UK a unique opportunity in the post-Brexit world, sitting as they do at Freeport East would build on the existing road and rail links to the the main junction point between the UK’s principal trade route to Midlands and the North of England – the destination for almost a and from the Far East and key freight links to and from northern third of Felixstowe’s current throughput. Europe.

George Kieffer, Chairman of the Project Board, said: “I am excited “Together with the leading edge technical skills that come with to be leading such a professional and expert team to drive forward the partnership with universities, including the University of a bid that will attract major investment and lead to increased Cambridge, this combination can serve as a powerful magnet economic prosperity not only locally, but nationally. The area to bring new investment into the UK and in particular to the area is home to some of the most deprived wards in the UK and by around this unique junction point.” bringing lasting regeneration and creating new job opportunities to the region the project will support the government’s levelling- Detailed plans will be set out in a formal bid document. up agenda. We look forward to working with universities in the region to make Freeport East a hotbed of innovation in the A video launching the bid can be viewed here. • technologies of the 21st Century.”

AV Dawson achieves new government standard

AV Dawson’s Port of Middlesbrough has achieved the government’s Earned Recognition status.

Earned Recognition operators must be able to demonstrate that they have robust systems and processes that promote effective and proactive transport management.

The scheme allows the DVSA to remotely monitor operators’ compliance systems and audits can be carried out to provide as- surance and confidence that operators are effectively managing transport operations and functioning in a compliant manner. This in turn reduces the amount of roadside checks and visits from en- AV Dawson Port of Middlesbrough Colleagues with Earned Recognition Certificate (L-R Alan North, AV Dawson maintenance forcement officers, reducing administrative burdens for companies manager, Peter Athey AV Dawson compliance manager and John achieving a high level of compliance. North, AV Dawson transport compliance advisor.

More information can be found on restricted to a length of 520m in the Stakeholder ORR’s website here. • Southampton area. This crucial investment will see this rise to 775m, survey on ROGS significantly increasing capacity and for second £17m boost to allowing an additional seven trailers to be transported on a single service. review Southampton’s The upgrade to freight capacity will ORR and the DfT are launching rail freight give a boost to the nation’s economy a stakeholder survey to gather capacity and the country’s second-busiest information on how ROGS are container port, increasing the volume working as part of the second Some £17m is to be invested into of goods transported to and from the post-implementation review of the a major rail upgrade to freight Midlands. regulations. services in Southampton, as the government says it looks to These improvements to existing The responses and experiences support the seamless flow of infrastructure also offer a green gathered from this survey will also be goods across the country alternative for local industry, reducing used by DfT to draw any conclusions and strengthen links into the reliance on road traffic, cutting or recommendations about how Southampton’s docks. congestion and increasing the ROGS could be changed in the efficiency of industry. future. Freight services are currently Click here for more. • 17 18 RFG SPONSOR PARTNERS 2020

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. RFG Opinion

On average, rail freight makes only 25% of the carbon of HGVs, Domestic rail and where it can use electric haulage, as most of these trains do, the performance is even better. Around 45% of all rail freight freight must be in Scotland is electric, far better than the national average which sits around 12%. part of So what has driven this success? A large part of it is the commercial model established by Scottish logistics companies such Scotland’s as WH Malcolm and J.G. Russell, who took the significant risk of transport future contracting the train, and opened up the use of rail for both large and small companies by aggregating traffic to a full train load. By Maggie Simpson OBE, This was a stark contrast to the usual arrangements, where the Director-General, Rail Freight Group freight train operator took the risk on the train fill, or more com- monly sold the entire train to a single customer.

It has been 20 years since the first train load of goods The development of rail linked warehousing has also been in- left Grangemouth for the newly opened rail terminal in strumental in the success. At Daventry, retailers such as Sains- Daventry in the English Midlands. Operated by Direct burys have relocated to be on site, shrinking the distance be- Rail Services for customer WH Malcolm the train car- tween railhead and warehouse, reducing costs and time. In ried glass from Alloa to be used for bottling lager and Scotland, PD Stirling aim to repeat this model with their Mos- making coffee jars. The northbound train returned the send International Rail Park currently under construction, pro- next day with petfood, pallets and some retail traffic. viding new facilities for future growth. Highland Spring’s new rail site at Blackford will shortly commence operations in a similar way. Fast forward to 2020 and over 30 trains a week now ply this corridor, with additional routes also serving Aberdeen and In- And what of the future? Well there is certainly appetite to do verness. The customer base has expanded with multiple retail- more. Customers are keen to make more use of rail, driven by ers and supermarkets consigning goods by rail, and some such environmental concerns, and factors such as road congestion as Tesco proudly promoting their use of rail in their branding. In make rail an attractive choice. With seismic changes in the pas- England, the terminal at Daventry has expanded significantly, senger railway as demand suffers the consequences of Covid, with its second phase completed in 2015 and its third phase there is a real opportunity to allow more freight to operate and currently in development. allow existing trains to be longer and run with better journey times. The success of these trains is not only getting lorries off the road – each train is up to half a mile long, taking up to 80 HGVs To make this happen, Governments and policy makers need to from the road network - but in getting Scottish goods to mar- ensure that railways really deliver for freight. More electrification ket efficiently and effectively. For whilst the northbound ser- of trunk routes, in Scotland and across the border can further vices bring retail products from national distribution centres in enhance the environmental credentials, and there must be on- the Midlands, the southbound flows are still all about exporting going support for new innovative services as witnessed recently Scotland’s local produce, be that mineral water, food and drink, with a movement of timber by rail. The successes of the last de- and chipboard. cade show how domestic rail freight has delivered for Scotland and must be part of Scotland’s future. The run up to Christmas is the busiest time for logistics movements (when Santa heads out on December 24 trains take a First appeared in The Scotsman , 24 Nov 2020. well earned rest!). But trains are not just seasonal. This hidden supply chain handles over 100,000 loads each year, operating day and night, and with a 97% performance too. Throughout the challenges of 2020, these trains have continued to move vital goods to and from Scotland ensuring shops are kept stocked and economic output can be delivered. The trains are also helping Scotland decarbonise its economy. Guest Article: Forrest Brown

Claiming tax relief for failed R&D projects

By Jenny Tragner CA ATT, Director, Forrest Brown

The business world is filled with gurus advising companies Failed R&D project examples to ‘fail fast’ or ‘fail better’. But business owners and deci- One of the many perks of working in R&D tax credits is seeing sion-makers know failure comes with a price tag attached. amazing feats of ingenuity up close. It’s wonderful to share in Yes, of course, innovation and risk-taking are important and fail- the success of our clients – but, as we’ve already established in ure is a reality in life let alone business, but funds are also limit- this article, failed R&D comes with the turf as well. ed (especially these days). There is, then, a balance that needs We frequently work with clients who have tried some- to be struck between innovating and investing your resources thing brave, novel, unusual or just plain difficult and fell prudently. short of the desired outcome. For these clients, the bene- R&D tax relief is a powerful way to maintain this delicate balance. fit helps recoup some of the money spent on a failed project. The incentive is not solely aimed at rewarding successful projects. I t c a n h e l p l e s s e n t h e fi n a n c i a l s t i n g o f a f a i l e d p r o j e c t a s w el,mak- Funding for failed R&D ing risk-taking and investment in innovation more sustainable. In the simplest terms, R&D tax credits are a way to fund R&D projects and mitigate losses incurred by failed R&D projects. But Failed R&D is R&D at a deeper level, the incentive also encourages a behavioural No ifs, buts or maybes about it: Failed R&D can unambiguous- switch. ly count as R&D for tax purposes. As the government’s guide- Exploration and curiosity have value, and R&D tax credits can lines clearly outlines: help you take bigger risks. Even if this attempt doesn’t pay off, “Even if the advance in science or technology sought by a proj- it might spark another idea or lead you down a previously unex- ect is not achieved or not fully realised, R&D still takes place.” plored path. Para. 10, Guidelines on the Meaning of Research and Develop- By viewing failure not just as a cost, it becomes possible to view ment for Tax Purposes. it as a point situated along a longer timeline. You’ve failed now, but armed with new knowledge, you can pick up where you left Not only is claiming for unsuccessful R&D allowed – it’s one of off and apply it in your next iteration or in a whole new project the pillars of R&D tax credits as a policy. Risk-taking sometimes (that could be eligible for R&D tax credits as well). means, as any entrepreneur or innovator knows, reckoning with failure. That’s precisely why R&D tax credits were set-up with We often find that our clients claim year-on-year. Innova- this dual nature of risk in mind. tion begets more innovation. As you invest and reinvest in R&D, the dynamics and mindsets in your company will Remember: It’s possible to retrospectively file R&D tax credit change too. Who knows what the possibilities might be? claims with HMRC. You have two years from the end of your accounting period to submit one.

Jenny is a director at ForrestBrown and leads our technical ap- R&D tax relief for failed R&D projects proach on all aspects of R&D tax credits. R&D tax credits aren’t just a reward for success. The incentive She joined ForrestBrown in 2015. In 2020 Jenny initiated the is intended to incentivise certain behaviours. And in business CIOT working group that drafted the PCRT guidance for R&D (as in life) failure should be viewed in a more nuanced way. Ex- tax credit advice. Through her work, Jenny plays a key role in ploration and curiosity have value. maintaining ForrestBrown’s excellent relationship with HMRC. Indeed, unsuccessful R&D is perhaps where the transformative power of this incentive shines brightest. We often talk about a ‘culture of R&D’ at ForrestBrown. By lessening the risks attached to innovation, it becomes easier for that culture to take hold. Contact Jenny Tragner Be bolder, go that little bit further, allocate a bit more resource www.forrestbrown.co.uk and then use R&D tax relief to support the cost of any failure. Read Jenny’s profile here. You may fall short, but those costs may be eligible for R&D tax relief. 21

Nov 2020 loud wagons are still allowed if they drive even without considering the pandemic. Penalties for noisy so slowly that they are not louder than The conversion is a costly procedure. modern quieter wagons, the ministry in- wagons in Germany formed the industy. According to the German ministry, 98.6 postponed per cent of the 183,000 freight wagons on The legislation concerning loud wagons the German network now comply with the By Majorie van Leijen stems from 2017, when the law prohibiting permitted noise levels. Incentives for noise these wagons was passed. This prohibits abatement have been there since 2012 in Germany will not penalise noisy railway the use of classic cast-iron brake pads. the form of track access charges incen- undertakings for another year. The ban Hence, all railway undertakings passing tives. The reduction of noise is important on loud freight wagons on the German Germany must do so using wagons fitted to increase the public acceptance of rail rail network will apply from 17 Decem- with composite brake blocks. Composite freight, especially where these trains run ber. However, due to the corona peri- brake pads ensure that the steel wheel through populated areas. od the transition to silent wagons has does not roughen when braking. Because in many cases been delayed. Hence, the wheel remains smooth for longer, The Federal Railway Authority is to mon- sanctions on the use of these wagons braking produces less noise itor the new regulations and starting from will only be implemented a year later. next year, fine those railway undertakings A large part of the industry has been in that do not comply. Exceptions apply to This was announced by the Federal Min- preparation for these new rules, retrofitting routes with a certain characteristic, or if istry of Transport. Workshop capacities entire wagon fleets. For example, DB Car- freight wagons cannot be converted to are severely restricted due to the corona go is currently converting 63,000 wagons quieter brake blocks for technical reasons. pandemic and the conversion of freight by December. At the same time, many rail wagons has been delayed or complete- freight operators from Central and Eastern From Railfreight.com 27 November 2020 ly interrupted since early summer. As a Europe have not been able to provide the compensation measure, freight trains with quick modernisation of their wagon fleet,

In her letter, she wrote: “Following recent conversations RFG supports the with the Rail Working Group, who have been working to se- cure the adoption of the Luxembourg Rail Protocol to the Luxembourg Rail Cape Town Convention, I wanted to express the Rail Freight Group’s support for this measure, which we believe will bring Protocol benefits to rail freight operators and users.

RFG’s Director-General Maggie Simpson OBE has writ- “Although the UK signed the Protocol in 2016 it is still await- ten to the DfT, outlining the Rail Freight Group’s support ing ratification, requiring a hook in primary legislation which for The Luxembourg Rail Protocol. The Luxembourg would allow relevant secondary legislation to be laid. We Rail Protocol is a global treaty which seeks to make it understand the Department for International Trade proposed cheaper and easier for the private sector to finance rail- the ‘Private International Law (Implementation of Agree- way rolling stock. As well as adopting the Cape Town ments) Bill’ (PILB) sponsored by the Ministry of Justice as Convention itself, the UK has already applied the corre- the most appropriate legislative vehicle to adopt the kind sponding Protocol relating to aircrafts. of “private international law” the Luxembourg Rail Proto- col would fall under. While there are clearly constraints on We believe the Luxembourg Rail Protocol can support parliamentary time during this challenging period, we would the rail freight industry grow and help meet UK decarboni- welcome the Government introducing such legislation at the sation targets by enabling easier and cheaper financing of earliest opportunity.” new greener rolling stock, including potentially locomotives and wagons.

tion distortion and damage to the industry independent operators, this is essential ERFA calls for as a whole. if we are to be in a position to continue to grow. Crucially, we also need to contin- more support for It said that on average in Europe, new ue to ensure that rail freight continues to entrants account for 44% of na- move across national borders regardless rail firms tional market shares of rail freight of how the pandemic evolves over the undertakings based on net-tonne km. On coming weeks and months.” The question of how best to support top of this, 31% of all rail freight undertak- rail freight through the ongoing Cov- ings are non-incumbent operators, mean- ERFA Secretary General, Conor id-19 pandemic in a fair, transparent ing they are not an incumbent operator in Feighan went on to say: “It is essential and non-discriminatory manner re- any European country. that Member States take a proactive ap- mains one of the most pressing issues proach to supporting the rail freight sector facing the sector. ERFA President, Dirk Stahl, said: “All ac- and look at proactive options such as a tors in the rail freight market have been waiving of track access charges. This will In a statement, the European RailFreight impacted by the continuing Covid-19 pan- ensure that all undertakings are support- Association (ERFA) called on the Euro- demic. We believe that support measures ed in an equal manner and subsequently pean Commission and Member States to for the sector as a whole are crucial, but ensure rail freight can continue to become ensure that support measures, which are we need to ensure these measures do not more competitive throughout and beyond needed, do not lead to avoidable competi- undermine competition. For private and the pandemic. 25 Nov 2020 News in Brief

• Hupac is seeing increasing demand for intermodal connectivity from/to south-east Europe and has increased the frequency between Rotterdam and Vienna and is now offering four departures per week / direction.

• A new collaboration between Lineas, Volvo Cars and DFDS Seaways brings the port of Ghent as a gateway to connect Lovosice with other and its rail terminal to a P&O Ferrymasters European terminals. Our customers face new multimodal level. complex challenges in transporting goods from The supply chain formed launches first direct A to B across long distances in a context of connects Gothenburg multimodal service time-critical, cost-constrained supply chains. with Ghent and from there Through this new service we will deliver value continues to Italy, Austria, connecting Czech for our customers by driving efficiency and and onward to China. helping them to eliminate waste and reduce Republic and UK CO2 emissions in their supply chains.” • GB Railfreight (GBRf) and Lineas have extended P&O Ferrymasters has announced the next The first train departed from Lovosice earlier their European freight step in the expansion of its pan-European this month and arrived in Europoort 24 hours operation in partnership. logistics network with the introduction of later with thirtyeight 45’ pallet-wide containers The existing traffic flow a new service from Lovosice in the Czech and huckepack trailers. There will be four from Antwerp through to Republic to Europoort – Rotterdam with departures per week in each direction and the Irvine will continue for the option for onward sea connections to train is able to transport hazardous goods and an additional two years. Britain. also goods subject to customs. The launch of The service has so far the new service builds onto P&O Ferrymasters’ averaged around 30 trains It will run its own trains in both directions from strong multimodal network, which has its own a year and will continue Lovosice – a strategic transport junction which train connections to Poland, Romania and Italy. to run approximately is situated close to both Prague, Germany and between two and three Poland – allowing businesses to move goods This announcement follows several major times per month. The faster and more efficiently to Western Europe. investments in P&O Ferrymasters’ network in trains, which arrive in the past 18 months, including the addition of Calais from the LINEAS Thorsten Runge, MD of P&O Ferrymasters, 200 mega trailers to its fleet and the opening of Rail operation, will consist said: “This new service is the first to provide new connections, such as the launch of a rail of roughly 20 ICA Tank a direct multimodal link spanning from the service between Oradea (RO) and Lodz (PL). Rail Wagons and will carry Czech Republic to Britain and the first direct 1200 tonnes of product rail link between the Czech Republic and the per train. Netherlands to use mega trailers. Part of the train will stop at Duisburg, which will be used • Kombiverkehr KG is expanding its commitment to intermodal transport between Germany Contact the RFG Team: and Scandinavia by strengthening its sales • Maggie Simpson OBE, Director-General, 07737 007 957 activities in what has been • Phillippa O’Shea, Administration Manager, 07931 763 081 a fast-growing business • Yvonne Mulder, Project Manager, 07887 767 666 field for a number of years. • James Falkner, Media Officer, 07753 271 110 Björn Saschenbrecker • Robin Smith, Welsh Representative, 07968 488 905 worked for ferry company • Mike Hogg, North of England Representative, 07833 402 804 TT-Line for more than ten years, the last nine RFG News is published by the Rail Freight Group, 7 Bury Place, London, WC1A. Tel: 020 3116 as Head of Freight with 0007 [email protected]. www.rfg.org.uk. RFG welcomes comments, letters and short articles. a focus on strategy and Opinions expressed in these articles are of the author only. RFG News is published primarily for development. online distribution but we will continue to send hard copies to those readers who request them. RFG does not endorse the services of its advertisers.