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Colas Rail Response 'Delivering the Goods' Consultation Towards

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Colas Rail Response 'Delivering the Goods' Consultation Towards Colas Rail Response ‘Delivering the Goods’ Consultation towards Scotland’s Rail Freight Strategy Introduction As one of Scotland’s largest and leading rail freight operating companies we welcome the opportunity to respond to this consultation and look forward to working with Transport Scotland and associated industry colleagues to achieve the vision, aims and targets resulting from this work. Scottish rail freight has witnessed significant growth in recent years in line with the wider UK picture. As we enter into 2016, a number of challenges face the rail freight market such as the decline of traditional commodity flows which will need to be collectively overcome if rail freight is to continue to grow. 1) What are your views on the vision for rail freight in Scotland? ‘The Scottish Government’s vision is for a competitive, sustainable rail freight sector playing an increasing role in Scotland’s economic growth by providing safer, greener, and more efficient way of transporting products and material.’ The importance of rail freight to the wider economy is well established with numerous publications citing its overall contribution to the UK economy to being £870m per annum but supporting an output of £5.9bn. As such a vibrant, sustainable and competitive rail freight sector is vital to contributing to Scotland’s wider economic growth aspirations. We agree with Transport Scotland’s vision for the rail freight sector, particularly the aspiration for an increasing role in driving Scotland’s economic growth. What is ultimately key however is the mechanisms for delivering the vision which are outlined in the document, namely; Innovation, Facilitation, Promotion and Investment. As such, we would recommend that these four areas are referenced in the ‘vision statement’ in order to improve awareness of them. As a final comment on the proposed vision, it is worth noting that a large proportion of Scottish rail freight flows interact with other constituent parts of the UK, particularly England. As such there is inevitably some requirement to link or reference the vision for rail freight in Scotland with other bodies wider rail freight visions. With that in mind however we support the development of an independent vision and Scottish rail freight policy that isn’t solely tied or reliant on other policies. 2) What are your views on the market opportunities identified in the document? The document correctly identifies the current challenges faced by the decline of traditional freight flows such as coal which had historically contributed to a significant proportion of Scotland’s rail freight sector. The document highlights a number of markets to which growth and or new traffic could arise from. Namely these were; Intermodal (Domestic and Maritime) Of all commodities currently moved by rail freight, intermodal is consistently seen as the fastest growing with future predictions indicating significant growth over the next decade and beyond. Currently, Scotland is served by both Maritime services originating at the Ports of Felixstowe and Gateway and domestic intermodal traffic which centres around Daventry International Rail Freight Terminal (DIRFT) located in Northamptonshire. Whilst maritime intermodal services to Scotland have steadily increased over recent years there has arguably been a more significant increase in domestic intermodal flows, particularly those centred on the supermarket and retail markets. With increased interest from retailers in using rail freight there is a clear opportunity to grow this sector. As is the case with both sides of intermodal, the ability to ‘backload’ material on the return leg of a rail journey is key to driving down costs which in turn ultimately makes rail more competitive compared to road haulage. Given the well-established demand for Scottish food and drink products there is clearly scope to increase the use of rail freight to move these products. It is worth noting that refrigerated containers exist within the rail freight sector and which are regularly used for the transportation of perishable goods. One potential opportunity within this sector could be the direct import of goods to rail connected Scottish ports which in turn could be moved by rail to the various Scottish inland terminals and distribution centres. This option though would require detailed work as the cost element would be a key factor in its success. Forestry Products As the sole rail haulier of timber products by rail, Colas Rail is well versed in the potential of this particular rail freight commodity. Whilst there is a significant amount of potential for growth within this sector, as the document highlights there are a number of barriers to growth which, hitherto, have resulted in lost potential. Chief amongst these barriers is the lack of suitable facilities to load/unload forestry products. Often, the required loading points lack a rail connected facility or are not close to a railway line. This in turn requires the use of road haulage to a rail connected facility which significantly increases the operational costs. The cost of installing a new connection onto Network Rail’s infrastructure is often prohibitively expensive, not least where signalling works are also required. A good example of this issue is the potential to move forestry products from Kinbrace. There is high demand to move windblown forestry products which otherwise spoil and create waste if not moved within a certain timeframe. Kinbrace, located on the ‘Far North Line’ in the Scottish Highlands whilst having a passenger station has no freight facility within the area. There are a multitude of alternative options that could ultimately reduce cost and improve feasibility such as ‘loading on the line’ where loading/unloading takes place on a running line on Network Rails infrastructure although this option necessitates an appropriate operational window either between other freight and passenger services using the line or around Network Rails engineering access. There are a number of commercial products available on the market ranging from signalling equipment through to temporary point work which again could reduce cost and improve feasibility although in each case Network Rail approval would ultimately be required. The potential use of grants and/or private and public funding could ultimately unlock the growth potential in this market and we will look to work with industry colleagues to expedite this. Construction Industry Having recently been awarded the rail haulage contract for Tarmac’s cement flows centred on the distribution hub of Dunbar (also known as Oxwellmains) we are keen to grow rail freight in this sector. Dunbar currently serves a number of key locations within Scotland and North England. The cement products we move play an important and direct role within the Scottish construction industry. This is evident with the construction of the ‘Aberdeen Flyover’ for which Tarmac’s Aberdeen terminal is a key distribution hub for cement products used during construction. The demands of the project will necessitate increased levels of rail services from Dunbar to Aberdeen which could result in a daily service. The Aberdeen Flyover scheme is one of a number of schemes in Scotland that will rely on rail haulage as a key component of its delivery. As new Scottish construction projects emerge the potential for rail freight involvement is significant. With that in mind however, it is worth noting that whilst the cement sector of the construction industry is well served in Scotland, the same cannot be said of bulk aggregates. With bulk aggregates there is a distinct lack of dedicated or useable rail connected terminals which could be utilised. This in turn means that this growth opportunity is missed. Low Bulk Haulage Colas Rail recognises and supports the potential growth of low bulk haulage sector. In June 2014, Colas Rail successfully undertook a trial in conjunction with logistics provider TNT, Network Rail and Intermodality which saw a low bulk service containing parcels and perishable goods operate from Rugby to London Euston station. The trial proved the ability to operate such a service and the potential benefits it could bring, particularly to busy city centre locations such as London, Glasgow and Edinburgh particularly with a view to serving the retail outlets at major principal stations and with a view to onward inner city distribution. Details of the trial can be found on the following link; (http://www.railwaygazette.com/news/freight/single-view/view/colas-rail-and-tnt-tests- express-rail-logistics.html). Petrochemical Not specifically referenced within the document but a key component of Scottish rail freight and of Colas Rails business is the movement of petrochemical products. Colas Rail operates a number of petrochemical services which originate from Grangemouth and serve terminals across Scotland and England. These services play a vital role in the wider supply chain of other key industries, not least the wider transport sector ranging from the delivery of aviation fuel to Prestwick through to domestic fuel and bitumen products. The petrochemical sector has room to expand not least in the aviation fuel sectors as demand for air travel continues to increase. Key to this growth from a rail freight perspective is the availability of sufficient and suitable paths on the Network aligned with the availability of diversionary routes and the ability to run services on a regular seven day basis. Petrochemical services, by their nature and weight have a lower velocity than other rail freight commodities and as such require specific paths on the Network. Aligned with this is the requirement for suitable ‘Off Network’ terminal time and the continuing availability of it. Other Services There are a number of other rail freight commodities that are predicted to grow in the short, medium and long term future but which are not specifically referenced within the document. These include commodities such as waste which can be transported to and burned at ‘energy from waste’ plants of which Scotland has a number of locations which are either rail served or within the vicinity of a rail connection.
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