Rail freight: market growth and support from Government
Statement to Parliament by Transport Secretary Alistair Darling on the Government's objectives for rail freight. Delivered: 19 July 2005.
The Secretary of State for Transport, Mr Alistair Darling As prosperity and the demand for goods grow, efficient freight transport is increasingly vital to the UK economy. The Railways Act 2005 has placed responsibility for rail freight in England with the Department for Transport and, with the repeal of Section 206 of the Transport Act 2000, the SRA's (Strategic Rail Authority) 2001 Rail Freight Strategy will cease to be in force. It is important, therefore, that the Government restates clearly its objectives for rail freight. The Ten Year Plan for Transport, published in 2000, forecast potential growth in rail freight of up to 80% to 2010. This was interpreted by many as a target, though we had always made it clear that actual growth would depend on a number of factors - in particular, the success of rail freight operators in winning business in highly competitive markets. In fact, although it is now recognised that the 80% forecast is unlikely to be met, growth in the rail freight market has been impressive. Rail freight is a thriving and competitive private sector industry, and since privatisation (1995), levels of freight moved have increased by 55% (measured in tonne km). Rail freight's market share also increased over the same period from 8.5% to 11.5%. The Government welcomes this growth and wishes to see it continue. Our clear policy aim is to see goods being moved in a sustainable way, which maximises benefits to the economy and to society. For instance, because they generally have less impact on society than road transport, rail and water freight can bring substantial benefits. In 2004-05, the rail freight industry moved the equivalent of over 7 million lorry journeys and saved 1.43 billion lorry kilometres, delivering significant reductions in pollution and congestion. We believe rail therefore has a crucial role to play in goods transport alongside other modes, and we wish to see freight travelling by rail instead of road wherever this makes most sense. This aim can be delivered most effectively by a competitive and dynamic private sector rail freight industry, and this is borne out by the growth since privatisation, which has been driven by real on-rail competition throughout the industry, including several new entrants to the market. We will not dictate to the industry how it should run its business or become involved in operational issues. Where disputes occur with other parts of the railway, they should be resolved through established rail industry dispute procedures. But Government does have a role to play and a relationship with the rail freight industry. Rail freight companies run on the same tracks as the publicly-specified passenger railway - therefore, Government has to be mindful of their needs. And Government recognises and wishes to encourage the important environmental and economic benefits that rail freight can bring. We will therefore ensure that our policies and regulations do not put unnecessary obstacles in the way of future growth; we will continue to provide financial support where it is affordable and offers the greatest environmental, congestion and safety benefits when assessed alongside support for other modes; and we will ensure that in specifying the passenger railways, we recognise and take into account the consequences of our decisions upon the rail freight industry. To achieve this, we will: