Developing a rail network that supports rail freight
2007 will be a crucial year for the development of rail services in Britain - particularly as regards freight.
The Office of the Rail Regulator (ORR) is currently reviewing Track Access Charges for the rail network, with potentially serious implications for the use of rail freight if charges are increased for freight users.
Meanwhile the Government are currently developing their high level requirements for the next five years for passenger services from the rail network. At the same time they will set out the amount they will fund the network to achieve these aims. Both these decisions, which are due out summer 2007, will have impacts on freights ability to use rail.
At the same time the Government is developing a longer term strategy for the rail network, covering the period up to 2035. This is also due for publication in summer 2007.
A rail network with sufficient capacity for freight is crucial for the future of freight transport across the UK. It would help minimise the environmental impacts of freight movements, take part of the stain off an overstretched road network, whilst supporting the competitiveness of the UK economy. The next 12 months will determine if Britain has a rail freight infrastructure capable of growing and meeting the demands of the changing business environment of the 21st Century. If it can, the economic, environmental and social benefits to us all would be substantial.
FTA aims to pursue the development of a rail freight network that will allow and promote the necessary and desirable growth in this valuable sector.
Key Current Issues
Track Access Charges Review
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Key Points
- The ORR is currently undertaking a Periodic Review of Charges for the period 2009 - 2014. This includes a review of Freight Access Charges.
- The ORR have announced a cap on any potential increase in freight charges, and their hope that the charges will actually be reduced.
- Network Rail is now preparing its Strategic Business Plan which will set out what they envisage happening on costs. This will be put out to consultation by the ORR.
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FTA View
- FTA supports the general objectives of the review. It is essential that the industry knows and understands its costs in order to manage them and plan network developments.
- The freight transport industry needs Network Rail to reduce its costs if rail is not to lose out to road freight. All sectors of the freight industry are constantly seeking to create cost efficiencies, and Network Rail must be the same or rail will get left behind.
- It is important to realise the relationship between charges and the level of performance that is derived from the network. Charges cannot be divorced from the value derived from rail freight services for the wider economy.
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High-Level Output Specification (HLOS) and Statement of Funds Available (SoFA)
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Key Points of Issue
- HLOS sets out Government requirements for passenger services - specifies five year (2009-14) improvements in safety, reliability and capacity.
- Accompanied by a five year SoFA - the level of funding the Government will make available to the railways to carry out these services.
- ORR price the HLOS - if HLOS is more than the SoFA, DfT will reduce the output specification or inject more funding.
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FTA View
- HLOS does not cover freight services, as the Government is not a purchaser of these. However, the FTA argue that the HLOS must be drafted with due regard to the requirements of rail freight in terms of access to tracks. We must ensure that the interest of freight is not sacrificed to meet Government targets on passenger services. If that were to happen the social and environmental costs in terms of increased road use by freight would be considerable.
- The Government needs to back this up with a sufficient level of funding in the SoFA to facilitate the services they are requiring of the passenger rail industry. Otherwise there is the possibility that the interest of freight would be negatively affected by the effort to ‘square the circle’ between the demands of the HLOS and the funding from the SoFA.
- FTA will be making contributions to both these papers as the DfT draw them up.
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Long-Term Rail Strategy document
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Key Points
- The DfT announced in March 2006 that they are to produce a long term strategy document (probably in the form of a White Paper) for the Railways in summer 2007.
- This document will examine rail freight in its own right
- This document will cover the period up to 2035.
- Proposals will be based on scenarios rather than forecasting.
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FTA View
- FTA believes the planning processes need to be re-considered. The link between Rail and its positive environmental effects was welcomed but DfT were urged to be more prescriptive on its understanding of these benefits and provide greater clarity on the definition of the Carbon Footprint.
- FTA members will be involved in DfT workshops to discuss detailed issues of the strategy.
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Links
Last updated: Tue Jul 24 15:04:19 2007
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