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Rail Freight Sector Hopeful of Quick Recovery

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141 May 2020 NEWS www.rfg.org.uk Helping ensure a sustainable future for UK rail freight Rail freight sector hopeful of quick recovery Membership survey reveals cautious optimism for post-coronavirus recovery P.5 GBRf and A survey conducted by Rail Freight Group • Despite these challenges, there was cautious Porterbrook trial (RFG) of its members has highlighted the optimism over the return to economic normality. parcels service challenges facing companies across the rail 45% of respondents expect their businesses to freight sector but also offers hope that the recover this year. 71% expect the recovery to recovery may not be as protracted as feared. take more than two months, and 38% more than six months. The polling, conducted in April, reveals signifi- cant interruption to normal operations with firms Maggie Simpson, RFG Director-General, said: highlighting reduced demand and declining “Rail freight is playing a key role in keeping customer orders, cash flow concerns, business goods and supplies moving across the UK sup- suspension and interruption and delays in areas porting the economy and communities. Yet the such as planning decisions. sector is also being adversely affected by these unique challenges, and our members are telling • The majority of respondents had seen their us of the difficult actions they are having to take P.6 businesses affected by the current situation, to protect their businesses. London waste on with 54% of those surveyed having closed parts rail service of their business or expected to close soon. “It is encouraging to see that many businesses expect to see some return to normality this year, • 55% of businesses had furloughed staff, with but this will only happen with continued support 42% furloughing more than a quarter of their from Government and a steady and considered staff, and 17% more than half. approach to rebuilding business activity,” she added. • • Sickness was not a significant issue with 80% seeing absence levels below 10% in their busi- More on RFG’s response to Covid-19 on page 3. nesses. Transfesa and DB Cargo launch P.7 Saying thank you to new Spain-UK express service Page 2. Covid-19 heroes Photo: Howard Lewsey 92015 & 66017 crossing the Medway Bridge Get your entries in for the RFGDetails onAwards page 4. 2020! RFG News May 2020 Director-General’s Update: Maggie Simpson email your comments to [email protected] For now, though we are continuing to press for the right Why there’s measures to keep rail freight on track, and to help rebuild services back to growth. In the short term this includes nothing financial measures, ensuring that Government support schemes work in our sector, and areas such as supply ‘normal’ about of PPE and keyworker testing. In the next few weeks, it is about keeping freight moving as a priority if and when the ‘new passenger services start to resume and making sure that support measures such as the furlough scheme are re- normal’ duced gradually and without any cliff edges. By Maggie Simpson, Director General, Rail Freight Group (RFG) We also recognise that business confidence is taking a bashing presently and we are starting to discuss the measures that Government could take to restore this and The current situation, and the months ahead are fre- encourage ongoing private sector investment. The an- quently being described as ‘the new normal’. It’s a nouncement of the Notice to Proceed on HS2 was an im- phrase I really dislike, for it seems to make what we portant step and unlocking other infrastructure schemes are experiencing now an acceptable and semi-per- which are awaiting decisions on planning or funding will manent thing. Whilst the controls and measures are help. From a rail perspective, securing confidence in fu- necessary to safely maintain the nations’ health now, ture access rights and charges will also be helpful. allowing them to become anything other than a crisis response raises some difficult questions for Govern- Finally, a huge thank you to all our members for their on- ment and business alike. going work in keeping their staff safe and the freight mov- Our conversations with members show the many lengths ing. Please do get in touch with any questions or issues. that are being taken to keep businesses functioning and We appreciate the current situation is highly concerning financially sound, and to ensure that staff are protected for all our members and staff. The RFG team stands and kept safe. The measures that are being taken are ready to help support everyone through this period, and working, but they are unpalatable for anything other than we will be sending out frequent updates with relevant in- the short term. So, we have to start thinking about how we formation as we receive it. The RFG team are working can safely start to unlock economic activity if and when from home and can be contacted as usual by mobile or Government decides to step forward out of lockdown. email – details are below. Indeed, there are already some promising green shoots where Government guidance has enabled some business Maggie Simpson, [email protected], 07737 007 957 activity to resume, for example in the construction sector. Joe O’Donnell, [email protected], 07974 168 922, (Working Monday, Tuesday and Wednesday) In my discussions with Ministers and officials it is clear Phillippa O’Shea, [email protected], 07931 763081 that they understand the huge contribution that freight Yvonne Mulder, [email protected], 07887 767 666 transport and rail in particular is making at the moment. Mike Hogg, [email protected], 07833 402 804 Indeed, the profile of rail freight has probably never been Robin Smith, [email protected], 07968 488 higher, and this is being helped by the continuing good 905 news stories that you can read about in this newsletter. James Falkner, [email protected], 07753 271 110.• This shows the resilience of our sector, and its determina- tion to keep its customers happy and the goods moving. This has also been noticed by decision makers, and I be- lieve it will stand us in good stead over the coming months. Bernd Hullerum, CEO of Transfesa Logis- transport.” Transfesa Spain tics said currently, they are currently serv- ing customers in the fruits and vegetables The new services operate into DB Cargo to UK Express but the objective is to expand the service UK’s Barking Intermodal Terminal in Lon- into a daily train for other chilled goods. don which is strategically connected to the service High Speed 1 (HS1) rail link. A lighter box, of the UNIT 45 type, has DB Cargo UK and its sister company been deployed on the service, which al- Hans-Georg Werner, CEO of DB Cargo Transfesa Logistics have launched lows around 30 containers per train to be UK, said: “DB Cargo UK are delighted a new express 72-hour rail service to moved. In this way, more products can be to be working with our DB Cargo group transport essential hygiene, medical included, and the capacity of each opera- partners at Transfesa Logistics to deliv- and food products from terminals in tion can be expanded. er essential rail freight services across Valencia and Murcia to London. the continent in these challenging times. “This is another step in the development Rail freight has a vital role to play in the The new 30-refridgerated box service ex- of our international corridors, thus ex- sustainable transportation of international pands Transfesa Logistics’ European op- panding services to a strategic segment. goods and it’s more important than ever erations and comes on the back of new In Valencia we have also just opened a that we ensure these supplies reach the perishables warehouse investment also in 2000 sq m warehouse for food products. UK.” • Valencia. The railway is, now more than ever, the most sustainable and reliable means of 2 RFG News May 2020 above link. RFG response to Demand for these tests has been high howev- News in brief Covid-19 crisis er, we strongly encourage you to advise your • A downloadable video self-isolating staff to get a test if they or some- message from Transport Since the start of the Coronavirus pandemic, one in their household have symptoms. Click Rail Freight Group has been increasing its Minister Rachael Maclean the link here for details on getting tested. If you MP has been released. In membership communications, sending out need further guidance and support, please con- daily updates sharing Government advice it she thanks key work- tact DHSC at [email protected]. ers for their extraordinary and available support from both outside the A package of materials has been created to help sector and within. work and resilience during communicate with staff. Download the pack the Covid-19 crisis and here. We have set up a LinkedIn discussion group specifically targets freight to allow both members and non-members to transport. Social distancing Download the video here. stay up to date on rail freight-related issues and The Government has published additional guid- share their experiences and views. If you have ance to assist employers, businesses and their not signed up yet please feel free to do so here. • RFG Director-General staff in staying open safely during coronavirus. Maggie Simpson recent- Click the links below for sector-specific informa- ly wrote for RAIL maga- Some of the most relevant support measures tion. put in place for companies involved in the rail zine on the importance freight sector are linked below. of greater investment in RSSB Covid-19 Support overhead electrification RSSB has created a dedicated page on its web- Job Retention Scheme across the UK, as part of site to outline how it is supporting the rail indus- decarbonising freight.
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