Delivering Your Goods Benefits of using Rail Freight Examples of products which Contents are transported by rail between Daventry and Scotland A guide to the benefits of using rail freight 3

Rail Freight – Baileys Irish Cream Crusha Milkshake Mix an introduction including financial support 4 Scotland Captain Morgan’s Rum Tetley’s Beer What moves by rail – snapshot 6 M&S Signature Clothing Various Cadbury Chocolates Soft Drinks Case studies 7 Bottled Water Argos Catalogues Spirits Sugar Cakes and Confectionary Bulk goods – by rail 10 Washing Powder Carlsberg Lager Household Cleaners Sports Equipment

Bulk goods – case study 11 Weetabix Cereal Panasonic Flat Screen Televisions

Rail in the supply chain 12 Bell’s Whisky Daventry Getting more freight onto rail – a step by step guide 14

Contact details 15 Delivering Your Goods Bottom-line benefits • Rail operates within a The bigger economic picture A Guide to the Benefits • Making use of rail can improve competitive environment • Rail freight generates over £1.5 the quality of your logistics this ensures that rail freight billion of economic benefits of using Rail Freight. chain – in terms of cost, operators continue to drive for the UK every year, is vital reliability and environmental down costs and improve for the competitiveness of the Rail freight offers multiple performance. Reliability and services for the benefit of economy, and is an intrinsic part benefits. The world’s resilience are key logistics all customers. of everyday life. requirements, providing largest international certainty and reducing the Corporate Social • Rail moves one in four Deep shipping companies, risk of product shortages. Responsibility Sea containers that enter supermarkets at the • Rail freight is better for the UK reliably, safely and fore-front of supply • Scotland and Great Britain the environment, typically sustainably – a vital role in the have a strong, competitive rail generating around 30% of C02 national supply chain. chain good practice, freight market, with operators emissions of road haulage per UK-based manufacturers and logistics providers available equivalent journey – and nearly and others realise the to help embed rail freight in the 90% less small particulate potential of rail to deliver supply chain, using hundreds matter (PM10) and up to fifteen of trains each week to deliver times less nitrogen oxide (NOx). a reliable, cost-effective goods across Scotland and and sustainable service. more widely across Great Britain. • Rail freight is also better for This short Guide gives local communities with less an introduction to using • Rail freight provides visual and noise pollution, rail freight and is aimed timetabled services with and fewer heavy lorries going at companies and public a high level of reliability. through villages and small sector organisations who The increased confidence in towns - railways are generally may be unfamiliar with rail’s rail is demonstrated by the segregated from residential capabilities, but who could growing use of rail for time- areas and take less land than benefit from the resilience sensitive deliveries by ASDA, roads. Rail freight has a much of a rail alternative for their Sainsbury’s and Tesco. better safety record than supply chain. The Guide road haulage. sign-posts to other more • Rail freight services can also be detailed sources of highly responsive to changing information. demand and can be flexible and organised at short-notice.

3 Rail freight plays a significant role in everyday life, with a Rail freight wide range of products – including supermarket supplies and high street brands – moving An introduction by train. Key Scottish exports – such as whisky, shortbread and bottled water – are also major users of rail.

One of rail’s key strengths is the ability to move many hundreds of tonnes of freight in a single train load, making it an obvious option for high-volume materials going from one rail-connected location to another. But the minimum load size available to customers on multi-user long-haul services is typically just a single container load (a lorry load equivalent).

Rail is increasingly diversifying into new markets, but remains strong for traditional bulk and semi-bulk commodities such as aggregates, cement, metals and petroleum.

4 In the intermodal (container) How rail freight operates operates under a licence granted sector (used by supermarkets Rail freight is organised differently by the Office of Rail and Road and large stores), rail now has to passenger rail. Trains are run (ORR) ensuring high levels of a firm presence in three distinct as ‘open-access’ operations safety and competence. Financial Support geographical markets, Domestic, (i.e. not through a franchise In recognition of the Deep Sea and European. contract) but they have stringent The intermodal rail sector normally environmental and social controls. is the involves a road collection and/or benefits of rail, the Scottish owner and operator of Britain’s delivery to feed in and out of the Government supports a range rail infrastructure, including rail trunk haul. Some of the FOCs of grants to help the transfer connections to major customers’ can provide a complete door-to- of freight from road to rail. own private sidings with many door service – such as Freightliner, Freight Facilities Grants help Domestic of its sites and depots leased to with its own in-house road haulage Inter-urban services within companies with the capital freight train operators. fleet – while in other cases Third Scotland; and Anglo-Scottish costs, by offsetting the extra Party Logistics companies will services to and from key costs of providing freight Network Rail also has arrange a seamless road-rail distribution hubs south handling facilities and Mode responsibility for finding suitable package for their customers. of the Border. Shift Revenue Support helps ‘paths’ (timetable slots) for both companies with the extra freight and passenger services In some case FOCs own a terminal operating costs. There is a to operate, and is committed to facility and in other cases terminals dedicated team working in the development of rail freight. are independently owned. All FOCs Transport Scotland to help can access any terminal facility companies make best use of Deep Sea Freight services across the – they range from the basic to the Direct trains to the major ports the funding available. Call network are provided by private more sophisticated. in England. 0131 244 1526 to find out more sector Freight Operating about these grants. Mode Shift Companies (FOCs) – see the Transport Scotland Revenue Support for cross list on page 15. (The Scottish Government’s border rail freight services Transport Agency) has policy may be jointly funded with the They provide the traction responsibilities for rail freight, Department for Transport. European (locomotives) and the rolling including its promotion. Whilst Call 020 7944 6848 to speak Links to key East Coast ports, stock (freight-carrying wagons), the vast majority of rail freight to a member of its Freight plus the . and in some cases the facilities to activities are undertaken on a Grants team. load and unload and transfer to strictly commercial basis, without other forms of transport such as subsidy or government support, road. FOCs have dedicated staff in some cases grant aid may be focused on the detail of moving needed to tip the commercial freight. Each of these FOCs balance from road to rail. 5 Illustrated here are snapshots of some current rail freight flows What moves which travel into, within and out of Scotland. The types of services are varied, but journey by rail - snapshot times and reliability are always competitive.

You may be surprised at the variety of goods which travel on rail. No matter what goods are transported by rail, customers report satisfaction with cost and quality of service - the key logistics requirements.

6 Case Study – Around the World

Freightliner’s Coatbridge terminal The terminal plays a vital role in With customers and hauliers able is the busiest rail container supporting Scotland’s exports by to book individual slots on trains or facility in Scotland. Every day connecting Scottish businesses as many as they require – and as the terminal handles overnight with markets all over the world. often as they need – Coatbridge

Domestic container trains serving the UK’s Between 20 – 25% of Scotland’s provides an entirely flexible rail Inter-urban services within key Deep Sea ports of Felixstowe, exports pass through freight solution for the circa 250 Scotland; and Anglo-Scottish Southampton, Gateway, Coatbridge. customers it currently serves. services to and from key Tilbury and Liverpool to ensure distribution hubs south the best of Scotland’s products Whisky and other major branded of the Border. are transported to world markets. spirits exports destined for all parts of the globe, including Coatbridge also handles three North and South America, There are a variety of goods domestic container services to Africa, Australia and Asia, are which are moved in the and from Daventry in the West transported on Coatbridge export intermodal/container sector.

Deep Sea Midlands, loaded with goods trains. With rising demand around Frequent services leave Direct trains to the major ports for the rest of the UK and the world, whisky continues to be and arrive at Coatbridge in England. northern Europe. the largest single product moving Lanarkshire, as well as through Coatbridge en route to regular services from nearby Opened in 1968, Coatbridge Deep Sea ports. Mossend and Grangemouth has become a vital hub for the – all in the Central Belt. movement of containers to and Other major products transiting The map on page 12 shows European from Scotland. In 2015 more than through Coatbridge include the major flows from each of Links to key East Coast ports, 80,000 containers were handled seafood, luxury textiles, iconic these terminals to Domestic, plus the Channel Tunnel. by the terminal – and demand Scottish branded bakery items Deep Sea and European is increasing. and many other everyday foods markets. such as oats and seed potatoes to be grown and harvested overseas.

7 8 Case Study – flexibilty

Freightliner creates Key planning staff were tasked In line with Freightliner’s a service in six days with identifying suitable train ‘Zero Injuries’ policy staff were Freightliner’s Project Team paths in existing timetables deployed to both terminals to was tasked with creating an to start operations within six understand the implications additional third service daily for days of the request from the and operational requirements. Tailored solutions logistics customer JG Russell customer. They collaborated with terminal in no more than six days. operators to develop a safe that both satisfy This was particularly difficult to system in the limited timescale. From a standing start, the achieve given that the terminals the customer team arranged a 20-wagon at either end were already From inception, the service has train to operate daily between busy and the line of route is a achieved a very high percentage and are delivered Scotland and the Midlands consistently busy corridor for of operation in terms of on-time within very short using the expertise of a team of freight and passenger traffic. arrivals at terminals, providing the select colleagues. The solution customer with the high priority, timescales. developed allowed the customer Commercial Manager, Richard on time service they required to achieve a 24-hour round trip Mannion said: “Team members to meet the end user’s needs. between the Prologis terminal were selected in line with their in Daventry and Freightliner’s specific skill sets so that we The team’s efforts prove that terminal in Coatbridge. were able to tailor the solution rail freight can be flexible and to the customer’s requirements, answer customers’ needs even This had never been demonstrating, once again, within a very short timescale. accomplished before using our ability to develop an answer The project team was Highly a single set of wagons. that both satisfies the customer Commended at the Institution and is delivered within a very of Rail Operators Golden Whistle short timescale.” Awards 2016 in the Outstanding Operating Team category.

9 Bulk Goods – by rail

Royal Mail They use Class 325 units that are This uses bulk wagons owned by Automotive DB Cargo operate a bespoke owned by and operate the customer, Omya. The slurry DB Cargo operate services from service based at Shieldmuir at speeds of up to 100 miles per arrives in Aberdeen by ship from Portbury (Port of Bristol) and (North Lanarkshire) carrying hour. Additional services operate Norway. Dagenham five days a week to both first and second class mail at peak times and at short notice Mossend. These trains convey between London (Willesden), according to mail flows. GB carry clay slurry Honda and Renault cars (from Warrington (Dallam) and from Antwerp once a week Portbury), operating twice a Shieldmuir. There are two Slurry for the paper industry through the Channel Tunnel week, and Ford cars (from trains daily in each direction, DB Cargo operate a service twice direct to Irvine. It is conveyed in Dagenham), five days a week. (Monday-Friday), given equal a week from Aberdeen Waterloo, bulk wagons owned by Imerys. priority to passenger trains on carrying slurry for the paper the . industry at Irvine and Warrington.

DB Cargo – Mossend to Aberdeen DB Cargo – Warrington to Shieldmuir, Waterloo, near Gleneagles South of Carstairs

10 Case Study – service excellence

Colas Rail operate a service between Dunbar (Oxwellmains) and Aberdeen for Tarmac. Tarmac is a market leader in sustainable construction materials and uses rail across GB to transport building materials. In Scotland, Tarmac own a quarry and cement plant at Dunbar and from there bulk and packed cement is transported by rail to Aberdeen. Currently Tarmac has a variety of customers in and around Aberdeen, and is supplying the Aberdeen Western Peripheral Route.

Investment at both Aberdeen and Dunbar has helped this service, including funding for new Tarmac uses a number of rail wagons which can increase different freight operating the amount of cement carried companies across GB. Service levels across the per train. Each of these trains industry are excellent and have removes over 40 cement consistently improved over lorries from the roads. As recent years. As a business well as serving Aberdeen with Tarmac have confidence in cement from Dunbar, Tarmac using rail and in support of that also transports this material to confidence have invested in Seaham, , Uddingston facilities and wagons. and Inverness. 11 Rail in the supply chain

Illustrated here are some Figure 1. Intermodal Flows Key intermodal rail freight flows current rail freight flows colour-coded as per the key below: into and out of Scotland

Also illustrated are some of the main rail freight terminals in use

12 Figure 2. Non-intermodal Flows Figure 3. Terminals Key bulk rail freight flows into and Key selected rail freight terminals out of Scotland. in Scotland.

13 Getting more • Size – volumes that fill a train freight onto rail are not always necessary, as Unit Loads: Multiple Loads: individual customer containers A step by step guide can be accommodated by the Identify exact Feasibility bigger operators. It might be ? load size Study To decide if rail freight is more economical to work through Confirming service details and suitability of an option for delivering a logistics service provider in the case of individual loads – or rolling stock and loading/ your goods – consider Freightliner in the case of flows Identify route unloading arrangements. these factors: to the big ports in England. requirements Identify • Distance – usually longer distances work best, but bulk Partners Logistics service rail services can be competitive Identify providers, FOCs, over short distances where requirements Network Rail. Consider origin and destination are investigating trials. directly rail connected. for transfer

• Type of shipment – Assess any special requirements: Contact one Environmental chilled/perishable and of the freight Benefits hazardous goods, for example, These are important as and how these can be handled. operators or they may be the basis a logistics of a grant application. • Access – location and access company to to the rail network need to be considered. You could use your enquire Establish own sidings or someone else’s Business Case nearby or take your goods by road Will using rail for your Goods work cost-wise? to the nearest rail freight terminal. Move your • Regularity of transport – goods by rail Operate the rail can cope with irregular loads (both size and timing), new rail flow but works best when freight movements are more regular 14 and can be planned in advance. Rail freight Freight Operating Third Party Logistics Key industry partners/ Contacts Companies Providers stakeholder groups Colas Eddie Stobart Network Rail Freight w: colasrail.co.uk w: eddiestobart.com Development Team e: [email protected] e: [email protected] w: networkrail.co.uk e: ScotlandRouteFreightTeam@ JG Russell networkrail.co.uk w: directrailservices.com w: johngrussell.co.uk e: [email protected] e: [email protected] Transport Scotland: Freight Grants Team DB Cargo Malcolm Logistics w: transport.gov.scot/freight-grants w: uk.dbcargo.com/rail-uk-en/start w: malcolmgroup.co.uk t: 0131 244 1526 e: [email protected] e: [email protected] Scottish Enterprise Team Freightliner w: scottish-enterprise.com w: freightliner.co.uk e: [email protected] Multi-modal Port Operators Highlands & Islands Enterprise GB Railfreight Aberdeen Harbour Board w: hie.co.uk w: gbrailfreight.com w: aberdeen-harbour.co.uk e: [email protected] e: [email protected] Freight Transport Association w: fta.co.uk Associated British Ports (Ayr) w: abports.co.uk Rail Freight Group w: rfg.org.uk Clydeport w: peelports.com/ports/clydeport

Forth Ports w: forthports.co.uk e: [email protected]

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