Memorandum from Network Rail (FT 08)
INTRODUCTION
1. Network Rail owns and operates Britain's
rail network. It is a private, independent, "not for dividend"
company directly accountable to its Members and regulated by the
Office of Rail Regulation. Profits made go straight back into
improving the railway. The aim of the business is to provide a
safe, reliable, efficient and sustainable railway, fit for the
21st century. Network Rail owns around 20,000 miles of track;
40,000 bridges and tunnels; 1,000 signal boxes; 9,000 level crossings;
2,500 stations that are leased to train operators; 17 large stations
that are managed and operated directly by the company, and a further
8,200 commercial properties all of which fund the rail network
infrastructure with £250 million per annum.
2. Network Rail does not run the trains
themselves. That is the business of the 24 passenger and four
freight train operating companies who are its main customers.
In a complex and entirely interdependent system, both Network
Rail and the train operating companies share the responsibility
of delivering train services to the travelling public and to the
nation. However, 60% of journeys start or finish at one of its
17 managed stations, with 650 million people passing through these
stations every year. This much direct contact with passengers
provides Network Rail with an understanding of their needs from
and aspirations for the railway and, ultimately, Network Rail
seeks to meet these.
3. Network Rail welcomes the Committee's
intention to conduct an inquiry into the issues connected to freight
policy, and the opportunity to respond. We trust this response
will provide an informative contribution to the Committee's inquiry
and would be happy to provide further evidence, either in oral
or written form.
THE GROWTH
IN RAIL
FREIGHT
4. Network Rail is serious about freight
and helps operators, and their customers, in planning and developing
rail freight. It provides access to the national rail network,
and offer a professional and practical service for organisations
wishing to move freight across Britain by rail. The company recognise
freight operators are not franchisees: they are long term businesses
that have invested accordingly, and their customers are the lifeblood
of British industry.
5. Rail freight is a success story, and
the social and environmental benefits it brings to society are
considerable. Indeed, every single person in Britain benefits
in some way from rail freight. Shifting traffic from already congested
roads to rail will bring greater future benefits. To businesses,
rail freight can offer a cheaper, quicker, more practical and
greener alternative to moving goods by road.
6. Traditional bulk commodities form the
majority of current rail freight shipments, with coal, construction
materials, metals and industrial minerals comprising over 80%.
Recent overall growth in the rail freight market has been in two
key areas: coal and intermodal,[6]
both of which are predominantly imported and access the UK through
ports.
7. Network Rail is committed to developing
Britain's rail freight industry and helping it play a greater
role in meeting the nation's transport needs. The industry has
grown rapidly in the last 10 years to the point where 20 billion
tonne kilometres of freight are transported every year, including
nearly 80% of the coal used by the UK's power stations and over
a third of all metal transported for our industries.
8. In many parts of Britain, economic growth,
allied to significant improvements on the railway itself, is leading
to increasing demands on the rail network. Development of rail
capacity and capability to meet the growing demand is a central
element of the Government's transport policy as articulated in
the recent White Paper Delivering a Sustainable Railway. Network
Rail aims to provide a high performing network that accommodates
the aspirations of both freight and passenger operators to increase
their services, in a way that maximizes overall value for money,
is affordable and can be delivered reliably.
9. By the end of 2008-09, Network Rail is
forecasting an increase of 3.6% in the number of freight tonne
kilometres. This is based on an increase in intermodal traffic
and the change in the pattern of coal traffic to power stations.
However, it is expected that there will be a growth of up to 30%
in freight tonnes over the period to 2014-15 compared to the base
year of 2004-05, which equates to up to 240 additional trains
per day on week days (including return trips running empty). For
this additional demand to be met by road freight would lead to
around an extra 1.5 million lorry journeys on the roads each year.
Whilst growth is predicted in the volumes of most commodities
carried, the greatest overall level of growth is expected in deep
sea (intercontinental) intermodal traffic. The greatest levels
of change in demand on a route by route basis are driven by alterations
in the sourcing of coal used by the electricity supply industry.
However, Network Rail is not expecting the development of major
connectivity between air and rail.
10. This growth is good news—it reflects
the attractiveness of rail as a way to move goods and commodities
and the success of the freight operators in marketing the railway
to their customers. It also has clear and substantial environmental
benefits for the country compared to the alternative of moving
this freight by road.
NETWORK RAIL'S
ROLE
11. In March 2007 Network Rail published
its Freight Route Utilisation Strategy (Freight RUS), which presents
a view of the freight growth and alterations in existing traffic
flows that can reasonably be expected to occur on the network
by 2015, as well as a strategy to address the key issues that
arise in accommodating these changes. The strategy was developed
in conjunction with Network Rail's funders and customers and overseen
by the Office of Rail Regulation.[7]
12. In meeting this rising demand, the Freight
RUS considered the ways in which the existing network can facilitate
additional freight traffic, as well as recommending network enhancements
to enable both the network, and the traffic it can carry, to grow
even further.
13. Unlike the individual "geographical"
RUSs (eg the South West Main Line RUS or the Cross London RUS)
which concentrate on resolving changing passenger demands on fairly
self-contained parts of the network, the Freight RUS considers
the future of freight across the entire network. This is important
because freight movements cross operational, political and geographical
boundaries. A network-wide approach made sure that the freight
demand forecasts used within each of the geographical RUSs were
consistent and a consistent national strategy for freight was
adopted. This strategy will only be revisited if capacity requirements
are significantly different when taken alongside demands for the
passenger railway.
14. Despite the unique role of the Freight
RUS in the RUS programme, the process followed was and is consistent
with that taken throughout the RUS programme. It involved a detailed
understanding of the freight network, forecasting freight on the
network up to 2015, assessing and agreeing the key gaps with industry
stakeholders and optioneering to understand what action can be
taken to bridge the gaps. A range of solutions were considered
in a hierarchical manner starting with simpler, non-infrastructure
solutions (such as amendments to timetables and operating longer
trains where the existing infrastructure permits) and progressing
to consideration of infrastructure solutions if required.
15. The Freight RUS recommends a proactive
strategy for development of certain routes to W10 gauge from the
current, smaller, W8. This will facilitate the growth of rail's
share of the market for haulage of 9ft 6in containers, enabling
it to carry a significant volume of traffic that would otherwise
be carried by road. Routes from the Ports of Southampton and Felixstowe
are demonstrated to have a positive business case. In addition,
operators have expressed aspirations to expand the coverage of
W12 gauge and European gauge to specific parts of the network.
It is now Network Rail policy that W12 clearance (which in many
cases involves only a small amount of incremental work over W10
clearance) is considered as a starting point when a structure
is renewed on the routes identified as priorities by the operators
in the RUS. This may be achieved by either the replacement of
a bridge with a higher structure or a lowering of the track.
16. Network Rail was particularly pleased
to be able to announce that the Network Rail Discretionary Fund
and the company's Out Performance Fund will be used to fund a
number of the enhancements proposed in the Freight RUS, allowing
them to move forward immediately. The Department for Transport
has indicated its support for the enhancement of infrastructure
to international gateways through its Transport Innovation Fund,
which will facilitate greater volumes of freight movements by
rail. Amongst those enhancements which will be funded or part-funded
directly are works to generate additional train paths and diversionary
flexibility from the ports of Felixstowe, Southampton, Immingham,
Hull and Liverpool and gauge and capacity schemes between Gospel
Oak and Barking.
17. Network Rail is also involved with Freight
Quality Partnerships across the country. It is always interested
in exploring with industry partners and others how to deliver
better rail services as part of the Freight Quality Partnership
initiative.
18. In addition, Network Rail is engaged
in an ongoing dialogue with customers and the Department for Transport
to identify schemes which will be developed as part of the Strategic
Freight Network which was proposed in the July 2007 White Paper.
Further details will be available when Network Rail's Strategic
Business Plan is published in early November.
THE IMPORTANCE
OF RAIL
FREIGHT
19. The recent increase in coal traffic
has been driven by two factors. The first has been a modest increase
in the total amount of coal burnt for electricity generation,
as coal has become more competitively priced relative to gas as
a source of power. Coal burn at power stations increased from
49.5 million tonnes in 2001 to 51.1 million tonnes in 2005.[8]
20. Second—and much more significantly
in terms of mileage—there has been a shift toward more coal
being burnt at power stations that are rail-served. This has been
caused by a reduction in coal burn at power stations that are
not rail-served (eg Tilbury power station plans to close as it
cannot cost-effectively meet recent emissions requirements) and
a requirement to burn more low sulphur coal (mostly imported)
which is less energy efficient than British deep mined coal (ie
more has to be burnt to produce a given output). There has also
been a significant increase in the quantity of open-cast mined
coal transported from Scotland. These factors have driven an overall
increase in coal moved for power generation (measured in tonne
kilometres) of 45% between 2001 and 2005.
21. The Freight RUS makes two key assumptions.
Firstly, that levels of imported coal will continue to grow throughout
the period covered by the RUS, replacing some remaining domestic
coal supplies and, secondly, that coal's place in the energy mix
in the UK remains broadly similar to that today. Coal fired power
station owners have invested heavily in flue gas de-sulphurisation
equipment in order to reduce the emissions from their power stations.
The level of this investment suggests to us that they anticipate
supplying a considerable share of the UK's energy needs throughout
CP4 (Control Period 4, which covers the years 2009-14), and beyond.
22. The importation of deep sea containers—driven
primarily by domestic demand for imported goods from the Far East—has
increased by an average of 5% a year over the last 10 years. Rail
is a competitive mode of transport for the trunk haul inland from
the ports towards the containers' final destinations. Since privatisation
in the late 1990s the rail's share of this traffic has increased
from around 16 to 25%.
23. Other key markets for rail freight are
bulk commodities such as construction materials, metals, and oil
and petroleum products. Rail haulage of construction materials
has grown by 17% over the last five years, with growth being focused
on London and the South East. The key demand driver is large commercial
construction and civil engineering projects (eg the building of
Terminal 5 at Heathrow Airport). The volume of metals transported
over the rail network has declined over the last five years, though
the average distance hauled and the tonne miles have increased.
Oil and petroleum haulage has been flat over the same term.
24. Network Rail's Strategic Business Plan—the
response to the Department for Transport's High Level Output Specification—will
set out a number of major infrastructure projects to be undertaken
over CP4. These projects, by definition accessible to freight
trains, will themselves have a potentially significant positive
effect upon the sector.
THE ENVIRONMENTAL
BENEFITS
25. In October 2006 HM Treasury published
the Stern Review on the Economics of Climate Change which estimated
that the dangers of unabated climate change could be equivalent
to 20% of GDP or more each year. The report was based on an update
of the scientific evidence produced for the 2001 Intergovernmental
Panel on Climate Change. The evidence of the relationship between
transport emissions and climate change has reinforced a Government
focus on the causes of greenhouse gases. There has been an increasing
focus on the environmental benefits of modes of transport with
lower emissions, including benefits of moving freight by rail.
26. Subsequently, in December 2006 HM Treasury
and the Department for Transport published the Eddington Transport
Study which highlighted the pivotal role that transport plays
in the UK's economic productivity, growth and stability, within
the Government's broader commitment to sustainable development.
The recent White Paper estimated that in 2005-06 rail freight
saved 6.74 million lorry journeys, equivalent to 122 billion kilometres
over that period.
27. For all commodities, it can be anticipated
that increasing congestion on roads and environmental issues and
incentives will lead to rail being an increasingly strong alternative
to road haulage. Every freight train takes an estimated minimum
of 25 HGV journeys from the road: if that train is carrying aggregates
that figure can increase by up to 60.
28. An example of the emerging change in
emphasis can be seen with Eddie Stobart Ltd announcing the launch
of its own rail freight service, as well as a contract with Tesco
to move goods between the retailer's depots in Daventry and Livingston.
The train, which makes the return journey between the depots every
day, carries a load equivalent to the volume of 28 lorries. This
arrangement therefore saves 19,600 road miles each day. The same
haulier has also recently acquired a share in a freight operating
company giving direct access to terminal facilities.
CONCLUSION
29. In summary:
— A number of factors have contributed
to the success of rail freight in recent years, including improvement
to the performance and operation of the railway, national economic
growth and an increased demand for certain commodities;
— Rail freight is particularly vital
to some sectors, notably electricity generation, where approximately
one quarter of the nation's generated power involves the use of
coal transported by rail, and the distribution of containers from
ports;
— Rail freight is expected to grow
further in the next decade and beyond;
— Network Rail is committed to helping
maximise the benefits the freight network brings to the nation,
through growth and further improvements in performance;
— Network Rail is equally committed
to working with freight operators and users to facilitate growth
in freight traffic through the more effective use of capacity;
and
— Rail freight brings considerable
economic and environmental benefits to wider society, particularly
in terms of reducing both congestion and emissions.
APPENDIX A
STRATEGY FOR KEY FREIGHT ROUTES
WEST COAST
MAIN LINE
The key flows driving the RUS strategy for the
West Coast Main Line are between Carlisle and Preston (the continued
operation of Class 6 diesel hauled services over the steep gradients
and some projected intermodal growth) and further south between
Winsford and Weaver Junction, at Stafford and between Rugby and
Wembley (growth in the deep sea intermodal market).
Short term (CP3: 2007-09)
— The proposed December 2008 timetable
is seeking to meet freight operators' existing needs.
— New loop at Hartford with higher
entrance and exit speeds to be delivered under the West Coast
Route modernisation project.
— Diversion of some services via Macclesfield
to remove some daytime services from Stafford station and Stafford
Trent Valley junction.
Medium term (CP4: 2009-14)
— Electric haulage of some new freight
traffic between Crewe/Warrington and Carlisle/Glasgow (over Shap)
to enable a third Up path in most daytime hours.
— Diversion of some Up Class 6 services
via the Settle and Carlisle and Hellifield—Clitheroe—Farington
Junction (away from Shap).[9]
— W10 clearance from Peterborough to
Nuneaton and some initial additional capacity from Felixstowe
to Nuneaton, allowing five additional paths from Felixstowe to
be routed cross-country away from the southern section of the
WCML.
Long term (beyond CP4)
The following schemes are beyond the timescales
of the RUS but will be needed if the projected growth continues:
— Lengthening of some intermodal services
to/from the Haven ports.
— Major enhancements in the Stafford
area (passenger demand could drive this scheme in the medium term).
— Major capacity enhancements on the
Felixstowe to Nuneaton route.[10]
HAVEN PORTS[11]
TO THE
WEST COAST
MAIN LINE
Short term (CP3: 2007-09)
— The Base Case assumes that the capacity
upgrades which Hutchison Ports UK are required to deliver as part
of the planning permission for Bathside Bay and the expansion
of the Port of Felixstowe (capacity upgrade of the Felixstowe
branch, alterations to Ipswich yard and W10 clearance of the route
between Ipswich, Peterborough and Doncaster) are completed within
the RUS period.
— The established Cross London RUS
states that 10 additional trains can be accommodated on existing
routeings via the Great Eastern (GE) and North London Line. This
should be sufficient until at least 2010-11.[12]
Three additional trains per day have already started running since
the base year 2004-05.
Medium term (CP4: 2009-2014)
— There will be a medium-term requirement
to route some trains to and from the Midlands and West Coast Main
Line via Ely, Peterborough, Leicester and Nuneaton (the "cross-country"
route). The RUS recommends that it is cleared to W10 and that
signalling headways are shortened in the Kennett area and a northern
facing chord to the Down slow line is added at Nuneaton, subject
to further development through the GRIP process.
— The above will be sufficient to accommodate
growth of five trains per day[13]
in each direction on the cross country route and provide a valuable
diversionary route. The specification of long-term capacity enhancements[14]
will depend on the timing of new portside capacity at Bathside
Bay, and any future decision to route some existing services away
from the Great Eastern and North London Line to facilitate improvements
in the passenger timetable.
— The Cross London and Freight RUS
both recommend the implementation of gauge clearance to W10 of
the Tottenham and Hampstead Line and associated capacity enhancements
which would enable some services from North Thameside (including
those from Shell Haven if it is developed) to avoid the North
London Line.
Long term (beyond CP4)
— Lengthening of some container trains
to 30 wagons (from the present 24) could be facilitated by further
alterations to Ipswich Yard, and loop enhancements on the cross
country route. Higher powered traction would also probably be
required if trains are to maintain Class 4 timings. This option
should be considered in conjunction with Ipswich area re-signalling
which is due to occur post 2015.
SOUTHAMPTON TO
THE WEST
COAST MAIN
LINE
Short term (CP3: 2007-09)
— Signalling enhancements on the Sutton
Park Line implemented with Saltley signalling renewals to increase
capacity on the alternative route to the WCML from Leamington.
Medium term (CP4: 2009-14)
— W10 gauge clearance of the core route
via Eastleigh, Reading West Junction, Leamington and Nuneaton.
— W10 gauge clearance of Landor Street—Sutton
Park line—Darlaston Junction to complete a second W10 cleared
route between Leamington and the WCML offering access to the WCML
at times of blockade on the core route.
— Development of a W10 gauge and capacity
capability for diversion via Melksham or Laverstock/Andover is
subject to further business case development.
Long term (beyond CP4)
The RUS recommends that if the demand continues
to grow as predicted further schemes may be necessary beyond the
life of the RUS. If development of an additional one million TEU
handling capacity takes place at the Port of Southampton, the
following schemes will be required in the medium term.
— Grade separation at Reading West:
Construction of a flyover to allow container trains travelling
to and from the Basingstoke lines to reach the Up and Down goods
and relief lines on the Great Western without crossing the fast
lines.
Further capacity enhancements are also likely
to be required along the core route and these are detailed further
in Chapter 9 [of the Freight Route Utilisation Strategy].
EAST COAST
PORTS TO
THE AIRE
AND TRENT
VALLEY POWER
STATIONS
Short term (CP3: 2007-09)
— Brigg Line enhancement to provide
a significant number of additional paths per day in each direction
between Immingham and the Trent Valley power stations/Doncaster
and a diversionary option to the South Humberside Main Line.
— Wrawby Junction linespeed improvements.
— Partial double tracking of the Hull
Docks branch.
— Reinstatement of the Boldon East
curve to generate additional paths to and from the Port of Tyne
and provide an alternative to the East Coast Main Line routeing
via Durham.
Medium term (CP4: 2009-14)
— Cottam Chord, allowing direct access
from Port of Immingham to the Cottam power station, thereby relieving
congestion on the Doncaster-Worksop route and the South Humberside
Main Line.
— Killingholme Loop to provide improved
rail access to the Port of Immingham, particularly HIT2 and the
Killingholme branch.
— Partial double tracking of the Hull
Docks branch.
— Selby station bi-directional signalling
and extension of Barlby loops.
ANGLO-SCOTTISH
COAL ROUTE
The Scotland RUS (published in March 2007) recommends
enhancements on the Glasgow and South Western route. The Freight
RUS recommends the following additional enhancements:
Short term (CP3: 2007-09)
— Enable loaded Up freight services
to join and depart WCML at greater speed by relaying part of Mossband
up arrival line to 50 mph and providing a starter signal on Gretna
station platform.
— Provision of six additional signalling
sections on the Settle and Carlisle route to generate additional
paths and improve passenger and freight performance.
Medium term (CP4: 2009-2014)
— If the maximum tonnage (Sensitivity
1) forecast occurs, there would be a requirement for up to approximately
£60 million worth of additional track renewals and structures
work.
October 2007
http://www.networkrail.co.uk/browse%20documents/rus%20documents/route%20utilisation%20strategies/freight/freight%20rus.pdf
6 Intermodal freight uses load-carrying boxes designed
to be carried by more than one mode of transport. Transfer between
modes is typically undertaken at terminals by overhead cranes. Back
7
The Freight RUS was overseen by a Stakeholder Management Group
consisting of Network Rail, English Welsh and Scottish Railway,
Freightliner, GB Railfreight, the Association of Train Operating
Companies, the Department for Transport, Transport Scotland, the
Welsh Assembly Government, Transport for London, the Rail Freight
Group and the Freight Transport Association. Passenger Focus has
been consulted at regular intervals during its development. The
Office of Rail Regulation (ORR) attended Stakeholder Management
meetings as observers. It is available at: Back
8
The Digest of UK Energy Statistics published by the then
Department for Trade and Industry showed that, in 2005, 33.5%
of electricity generated in the UK was from coal. Back
9
This option is dependent on significant volumes of track and structures
renewals work between Hellifield and Blackburn. Back
10
The optimum time to deliver capacity enhancements at Leicester
(the key constraint on the "F2N" route) may fall inside
the medium term (CP4) depending on the timing of resignallling
of Leicester control area (currently planned for 2013-15). Back
11
Felixstowe and Harwich/Bathside Bay. Back
12
The precise point at which remaining capacity on the GE is taken
up is dependent on the rate of portside development at Felixstowe
South and Bathside Bay and the timing of delivery of HPUK enhancements
to the Felixstowe branch and Ipswich yard. Back
13
This is in addition to nine growth paths identified via Peterborough
to the East Coast Main Line destinations. Back
14
As footnote 6. Back
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