Select Committee on Transport Written Evidence


APPENDIX 5

Memorandum submitted by Freight on Rail

  The format of our response is a short introduction with a definition of Freight on Rail.

  The membership.

SUMMARY

  A.  Partnership role.

  B.  Flexibility of Funding.

  C.  Comments on DfT guidance on LTP funding.

  D.  Why rail freight is important to the economy and society.

DEFINITION OF FREIGHT ON RAIL

  Freight on Rail is a campaign working to get goods off roads and onto rail as an important step in developing a more sustainable distribution system.

  Freight on Rail is a partnership between transport trades unions, rail freight industry and Transport 2000. It works to promote the economic, social and environmental benefits of rail freight both nationally and locally. It advocates policy changes that support the shift to rail and provides information and help on freight related issues. In particular, it aims to help local authorities through all stages of the process such as planning a rail freight strategy, accessing grants and dealing with technical matters.

  The members are as follows: Rail Freight Group, EWS, Freightliner, RMT, ASLEF, TSSA, Network Rail and Transport 2000.

SUMMARY/CONCLUSION

  We believe that LTPs form a key part of the framework to integrate land use planning and transport. We need to make sure that rail freight does not fall between regional and local plans. It is important to bear in mind that rail freight is extremely well placed to meet the key objectives of LTPs in terms of congestion and road accidents reduction as well as improvements in air quality (DfT Guidance Chapter 3.4/Value for money Chapter 4.50, 4.52). We would therefore ask that local authorities undertake to consult with the rail freight industry where they are dealing with potential rail freight issues. Freight on Rail is pleased to act as a facilitator.

A.  PARTNERSHIP ROLE

  Government should promote partnerships with rail industry and other interests such as councils, developers, employers tourism bodies and development agencies to improve the railways.

B.  FLEXIBILITY OF FUNDING

  We question why local authorities are precluded from using LTP funding for rail, even though rail is well placed to help authorities meet the objectives set by the DfT, to reduce congestion and road accidents as well as improving air quality.

  Authorities can and should however allocate funds to improve road access to existing or new rail freight terminals within LTPs, under the present guidelines.

C.  COMMENTS ON DFT GUIDANCE ON LTPS

  Freight on Rail welcomed many aspects of the guidance but was disappointed by the absence of guidance on freight transport. We would like to emphasize the importance of consulting the rail freight industry, operators, the Rail Freight Group, Freight on Rail and users in preparing plans, particularly where there are potential rail freight issues. The Freight Transport Association alone cannot represent rail freight interests.

D.  WHY RAIL FREIGHT IS VITAL TO THE ECONOMY AND SOCIETY

To protect the environment

  Tonne for tonne rail freight produces 90% less carbon dioxide than road transporti.

  Rail freight makes a vital contribution to protecting the environment and helping the Government to meet its commitments to improving air quality and tackling climate change. Overall rail produces less than 1% of the total U.K. emissions of carbon dioxide, the principle greenhouse gas, compared with 21% from road transportii.

To relieve road congestion

  An aggregates train can remove 120 HGVs from the roads—Network Rail 2005.

  Rail is able to act as a freight bypass by offering a more reliable alternative to road—something that will be more attractive as road congestion continues to worsen.

Rail customer endorsements

        "With road we have three, four or five times more problems, that is why we do it by rail," Alistair Monague of Maersk explained February 2006.

DETAILED RESPONSES

A.   Role of local authority partnerships

  Within this planning framework, 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.

  Local and Regional authorities are well aware of the need to lever in additional funding and many good examples of schemes have merged from the LTP process within a partnership framework.

  Derbyshire County Council is a good practice rail freight example and has an outstanding story to tell on freight with eight million tonnes of freight now carried by rail each year that previously went by road.

  The council is committed to promoting sustainable transport and minimizing the negative impacts of freight transport. Derbyshire is a major producer of aggregate and mineral products, which are principally consumed elsewhere in the country. Transport of these goods raises a significant environmental issue in terms of the sensitive environment of the Peak District, which is the main source of limestone working, and the burden that lorry traffic would place on local communities. Developing and implementing a freight onto rail policy has involved the council building a strong relationship between the rail-freight operators, Network Rail, the SRA in the past and now DfT, the Rail Freight Group, manufacturers, freight forwarders and extractive industries. Good liaison has also been built within the council between the departments of transport, policy and mineral planning.

  Other examples of arrangements on the passenger side are Surry County Council's pathfinder works looking at a county council role in station upgrades; Kent county Council's partnership with districts, TOCs and Network Rail; the Ebbw Vale re-opening by Blaenau Gwent Council.

  Reading Council has stated that a partnership there could use developer funding to re-signal the railways there, redevelop the stations and add to capacity for the Southampton-West Midlands route, at no cost to the taxpayer.

B.   Flexibility of funding

  We question why local authorities are precluded from using LTP funding for rail, even though rail is well placed to help authorities meet the objectives set by the DfT to reduce congestion and road accidents as well as improving air quality.

  Research commissioned by Freight on Rail highlights that in counties with significant rail freight potential, the local transport authorities could save serious amounts on road repairs if suitable cargoes were to go by rail. This research also suggests that there would be merit in allowing certain local authorities, with significant bulk, waste or port traffic for example, to use part of their road maintenance budget to support rail freight facilities and services.

  The research shows that the case study county council, which spends a typical amount on its road maintenance, could be saving as much as £770,700 on road maintenance each year because certain goods in its area go by rail rather than road. The research makes a strong case for local authorities to encourage more freight to go by rail, particularly where they have significant bulk, waste or port traffic in their regions, even without taking into account the significant additional environmental, social and congestion benefits of rail freight. HGVs are up to 160,000 times more damaging to road surfaces than the average car; some of the heaviest road repair costs are therefore almost exclusively attributable to the heaviest vehicles and the research suggests that transfer to rail can reduce these costs.

C.   How helpful was the LTP guidance from the Department for Transport?

  Freight on Rail welcomed many aspects of the guidance but was disappointed by the absence of guidance on freight transport. We would like to emphasise the importance of consulting the rail freight industry, operators, the Rail Freight Group, Freight on Rail and users in preparing plans, particularly where there are potential rail freight issues. The Freight Transport Association alone cannot represent rail freight interests.

  However, we believe that the guidance underplayed the potential role of the railways. This was also true of the White Paper, "The Future of Transport". Rail services can provide a frequent and high capacity alternative to car journeys and promote economic regeneration. Rail, both passenger and freight provides a serious alternative to combat road congestion which is crucial for the economy as well as for society and the environment.

  Two port examples of the importance of rail freight's role in alleviating road congestion are Southampton and Felixstowe. Both the A14 and the A34 are key artery routes which are very congested. Currently rail freight services remove over a thousand lorries a day from both local and trunk routes from these ports. More freight could be transferred to rail with Government support for infrastructure enhancements. Both regions are experiencing economic growth which requires sustainable transport infrastructure development.

  We do not believe that the guidance recognised rail's role in providing sustainable transport solutions.

  See section Why we need rail freight to protect the Environment for detailed statistics.

  The alarming increase in global carbon dioxide emissions, show what a key role rail freight can play in reducing air pollution and climate change.

Freight Transport

  Given the scale and importance of freight transport it is regrettable that there was so little guidance to local authorities on what they can do to promote sustainable transport, in particular help facilitate modal shift and to limit the impacts on the community of freight transport. We believe that local authorities have a crucial role in shifting freight onto the railways as local and regional authorities set the framework upon which rail freight operates through the planning system via Regional Planning Guidance and Local Development Frameworks. So it is vital that regional and local spatial planning makes adequate provision for rail freight. It needs to identify and protect existing and disused sites, lines and sidings and suitable interchange locations. In particular, planning permission for rail interchanges, without which rail freight cannot increase, will not be secured unless the right policies are enshrined in the spatial planning framework. The recent case of Mansard County Homes v Surrey Heath shows councils countrywide that, with the strengthening of Planning Policy Guidance PPG13, they can protect disused railway land for future potential railway use, without fear of litigation if this land is identified in local transport plans even where there is no immediate evidence of future possible use. In addition to meeting some of the shared priorities (road congestion reduction, improving road safety and air quality) modal shift can generate savings in road maintenance costs and this should be reflected in the asset management section of the guidance.

D.   Why we need rail freight?

To protect the environment

  Rail freight makes a vital contribution to protecting the environment and helping the Government to meet its commitments to improving air quality and tackling climate change. Overall rail produces less than 1% of the total UK emissions of carbon dioxide, the principle greenhouse gas, compared with 21% from road transportiii.

  Tonne for tonne rail freight produces 90% less carbon dioxide than road transportiv.

FREIGHT TRANSPORT: AVERAGE EMISSIONS IN GRAMS PER TONNE-KILOMETREv
ModePM10 CONOxCO2 VOC
Rail0.0040.032 0.31150.021
HGV0.0480.33 1.741800.15

Key: PM10 particulate matter of less than 10 microns; CO carbon monoxide; NOx oxides of nitrogen; CO2 Carbon dioxide; VOC volatile organic compounds.

To relieve road congestion

  An aggregates train can remove 120 HGVs from the roads—Network Rail 2005.

  Rail freight, acting as a freight by-pass, can reduce road congestion which according to the UK Government is set to grow by up to 37% by 2010.

To offer an alternative to other issues facing road transport:

    —  Road congestion is causing extended and less predictable journey times.

    —  Existing driver vacancies 47,000 with the average HGV driver age now 55.

    —  Working Time Directive is estimated to require another 30,000 and to cost the road freight industry an extra £1 billion per annum.

    —  Taxation by distance and tougher emissions regulations on the agenda.

Customer endorsements for rail freight 2006 at a European rail freight seminar 23 February 2006:

      (a)    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," Monague explained.

      (b)    "Rail to and from the UK's major ports is proving more reliable than road. Dedicated K&N rail services from Southampton and Felixstowe are recording 95% reliability levels, compared with `low-mid 80%' for comparable road haulage". Peter Ulber, Chief Exec. Kuenhe & Nagel 2005.

NOTES:

i  AEA Technology for Strategic Rail Authority, October 2004.

ii  The Railway Forum 2005.

iii  The Railway Forum 2005.

iv  AEA Technology for Strategic Rail Authority, October 2004.

v  SRA February 2005.

25 April 2006





 
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