Memorandum submitted by Freight on Rail
HOW GOVERNMENT POLICY CAN REALISE RAIL FREIGHT'S
ROLE IN REDUCING CARBON EMISSIONS
TONNE FOR
TONNE RAIL
FREIGHT PRODUCES
90% LESS CARBON
DIOXIDE THAN
ROAD TRANSPORT[31]
Key factors for rail freight
1. Land Planning framework
A national strategy is crucial for rail freight
because it sets the context and the overarching policy for regional
and local spatial planning. Regional authorities produce Regional
Spatial Strategies, statutory documents, which direct regional
and local land-use planning policy. Local authorities produce
Local Development Frameworks which identify and protect existing
and disused sites, lines and sidings with potential as suitable
interchange locations.
2. More interchanges needed for rail freight
to grow
The larger terminal/interchange schemes often
have regional significance but the principle of subsidiarity places
decisions on planning consent at local level. Clear national and
regional guidance is essential if local decision-making is to
take account of regional and national needs.
3. Giving long-term stability to industry
and confidence to invest
Rail strategy also needs to demonstrate that
the Government is committed to rail freight so that the industry
can make long-term decisions to invest. The industry has invested
over £1.5 billion since 1994.
A national strategy is crucial for rail freight
because it sets the context and the overarching policy for regional
and local spatial planning. Regional authorities produce Regional
Spatial Strategies, statutory documents, which direct regional
and local land-use planning policy. Local authorities produce
Local Development Frameworks which identify and protect existing
and disused sites, lines and sidings with potential as suitable
interchange locations.
4. Rail freight operators need long term
stability in track access charges.
The Government recognized in the "Future
of Rail" in July 2004, that "rail freight plays an important
part in the nation's logistics" and stated that" rail
freight operators need certainty about long-term access rights
and what they will cost".
5. Government's role in encouraging third-party
investors in rail infrastructure
The Government should promote partnerships between
the rail industry and other interests, such as councils, developers,
employers, tourism bodies and development agencies, to improve
the railway locally. New funding regimes, for example through
a form of enhanced land value tax, already being considered by
the Government, could be applied to the railway, especially in
growth/regeneration areas.
We therefore think that a key element of both
HLOS and the rail strategy should be about creating templates
for partnerships between the rail industry and others.
6. Capacity and capability on rail network
for growth
Rail network is constrained on key corridors
as highlighted in the Route Utilisation Strategies (RUS) programme.
Investment is needed if rail freight is to recognise its full
role in reducing carbon emissions.
QUESTIONS
(a) Is the Government's recognition
of rail freight's role in reducing carbon emissions reflected
in its policies?
Research indicates that heavy goods vehicles
only pay for around 59%-69% of the full (including the social
and environmental) costs they impose upon society. These costs
include greenhouse gas emissions, air pollution, noise, congestion,
accidents and deaths.—Environmental and Social Costs of
Heavy Goods Vehicles and Options for Reforming the Fiscal System,
Oxford Economic Research Associates, report prepared for English
Welsh and Scottish Railway, January 1999
FREIGHT GRANTS
The total amount of direct Government support
for rail freight has reduced dramatically
£61.1 million 2001-02
£51.9 million 2002-03
£37.3 million 2003-04
£28.5 million 2004-05
This support will decrease further 2007-08,
2008-09 the SDF will be approximately £26.1 million, which
covers all modes—no discrete allocations by mode, of which
circa £7 million will be for rail & water FFGs.
Freight Facilities Grants (FFG) which lever
in significant amounts of private investment are important in
encouraging the shift to rail as they offset the initial start
up costs of modal shift. It is unfortunate that while a resumption
of Freight Facility Grants is most welcome, the small amount actually
made available will have a modest impact on modal switch
and will do little to raise confidence in rail on the part of
potential and existing customers.
Not clear if Aggregates Levy Sustainability
Fund (ALSF) will continue beyond 2007 £2 million 2006-07
for rail & water for use in supporting aggregates movements.
The Scottish Executive and Welsh Assembly have
separate arrangements for freight grants.
(b) Will benefits of using rail
freight, as opposed to road freight, be fully reflected in Ports
Policy?
Why was Shellhaven approval made conditional
on motorways developments rather than rail?
Container traffic is one of the fastest growing
rail traffic, which is forecast to double over the next 10 years.
Customer quotes at a European rail freight seminar
23 February 2006
Alistair Monague of Maersk commended the UK
industry for achieving 98% on-time arrival at destination rail
terminal. He noted that rail was cheaper than road to many terminals
and demonstrated customer satisfaction. Maersk has trebled its
rail volumes in three years and with the volume increases the
unit cost paid by Maersk has dropped by 4%.
Extract from Rail Business Intelligence 9 March
on same speech from Mr Monague of Maersk.
Maersk stated that road hauliers raised their
rates by 15% over the same three year period . . . But reliability
is even more important for the shipping line. Out of 80,000 jobs
(a box round trip in the UK) delays attributable to rail in 2005
were 882 wheras road delays amounted to 3,336. "With
road we have three, four or five times more problems, that is
why we do it by rail," Montague explained.
April 2006
31 AEA Technology for Strategic Rail Authority, October
2004. Back
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