Select Committee on Transport Written Evidence


APPENDIX 21

Memorandum submittedby the Rail Freight Group

INTRODUCTION

  1.  The Rail Freight Group is the representative body of the rail freight industry. During the bid process for the 2012 Olympic Games, we had a number of meetings with the bid team, as described below. We had useful discussions, and felt that the bid team generally recognised our concerns, and sought to mitigate any adverse effects. However, although we received assurances on some issues, it is likely that there will be a new team of people, and we will wish to be assured that these concerns are being properly addressed.

CONSTRUCTION MATERIALS

  2.  We would wish to ensure that the maximum amount of construction materials is transported to and from the Stratford site by rail. This makes excellent transport and environmental sense, especially in an area of such high road congestion. For this to be practicable, there have to be suitable terminal sites for loading and unloading such materials.

TERMINAL SITES

  3.  Some months ago, when the bid was being prepared, discussions with the bid team were held on a number of issues, including the availability of such terminals. There are currently three sites at Bow, used for construction materials and other products. We understand that some of these sites may be required on a permanent basis for the Games and afterwards, whereas others may be required for use as a car park during the Games. We argued in favour of retaining some of the sidings, which provide an important supply of building materials for the City of London and surrounding areas delivered by rail.

  4.  We suggested that this could be achieved by reducing the area of the proposed car park to enable some of the siding sites to be retained, and suggested that they retain the desired number of parking places whilst taking less land. The bid team clearly found this a novel approach, and felt that, since the sidings were within the boundary of the site, they would have to be removed. They were further worried about cement dust on the Royal car which might pass through the car park. We reminded the bid team that modern concreting equipment is very environmentally friendly and we understand that the operator offered to suspend operations during the Games.

  5.  We urge the Committee to consider the balance between the need for land for the Games, and the ongoing needs of the construction industry in that area of London. The bid team were not able to identify any alternative locations for such facilities.

SECURITY AND ITS AFFECT ON RAIL FREIGHT.

  6.  In our preliminary discussions with the bid team, we were surprised to hear that they proposed to prohibit freight trains from using the High Meads Curve on the Stratford site for a two month duration of the Games because the Olympic Village was to be built over this line, and rail freight was a "security threat" to the Village. We challenged the bid team for evidence of this, and asked whether they had consulted the Metropolitan Police or TRANSEC, the Department for Transport's Security branch. They admitted that they had not and so, after some discussion, we received letters from these organisations stating that, under normal security conditions, there was no need for such restrictions. This was accepted by the bid team.

RAIL FREIGHT SERVICES THROUGH THE STRATFORD SITE.

  7.  A large number of freight trains pass through the Stratford site every day, most operating between the North London Line and either the Great Eastern Main Line or the London, Tilbury and Southend lines. Such traffic is likely to grow significantly in volume if the Thames Gateway and/or Bathside Bay or Felixstowe South container terminals are built. Early discussions with the bid team indicated that it was likely that freight trains could continue to operate normally for most of the time. The only exceptions were on the North London Line when additional passenger trains might be run towards Stratford in the mornings and away from Stratford in the evenings during the Games.

  8.  Whereas this may well be acceptable to the rail freight operators and customers, any greater disruption, for example for the duration of the Games, would have a serious and adverse effect long term on rail freight business and, as such, would be unacceptable. In such cases, alternative routes to the same capability must be provided in advance of the Games.

INDEPENDENT RAIL REGULATION

  9.  We are concerned about proposals in the Olympics Bill to enable the Secretary of State for Transport to direct the Office of Rail Regulation. Although the clauses in this Bill are less draconian than those in the Crossrail Bill, they are still of concern to the industry.

  10.  We believe that the retention of the independence of the Office of Rail Regulation is essential to the ongoing development and private sector investment in the rail freight industry. This has been confirmed on a number of occasions by ministers, independent regulation is the cornerstone of the Government's structure of the railways, as confirmed in the following Statement by the Secretary of State for Transport on 9 February 2004 (Col1237W): "The independence of economic regulation has already been clearly set out in my statement of 19 January. The Government also rules out any change to the rights of third parties, which will be protected. There is no question of weakening the effectiveness of economic regulation. The Government recognises that maintaining fully effective and independent economic regulation is critical for retaining investor confidence. There will be no diminution in the regulatory protection of the private sector investors in the railway."

  11.  These clauses would permit a considerable weakening of the principle of independent regulation and, as such, will seriously reduce the protection of the private sector investors in the railway, which has been based, over the last ten years, on independent regulation coupled with due industry processes that are seen to be both transparent and fair to all the players.

  12.  We oppose any such weakening but, at the same time, are confident that the normal industry processes will enable a reasonable number of additional rail services needed for the Olympics to be achieved with minimum disruption to other users of the lines. We will certainly be willing to participate in any such processes, and we therefore urge the Committee to recommend that these clauses be removed from the Bill.

 CONCLUSION

  13.  Apart from the concerns about the Bill referred to above, our other concerns were discussed with the bid team in outline. Assurances are now required that there are to be no significant changes which could adversely affect freight. It would be useful, however, in the absence of satisfactory resolution, if there were a means of appeal to an independent body. The most appropriate body to us would be the independent Office of Rail Regulation, who as already received greater powers and locus for appeals under the Railways Act 2005 and other recent legislation.

  14.  We urge the Committee to investigate the above issues.

8 September 2005





 
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