The Rail Freight Council of the Freight Transport Association (FTA) has told government the industry needs an attractive and stable environment for rail freight in order to encourage private investment.

In a letter to rail minister Derek Twigg, the FTA is calling for a clear definition by government of what the rail network is capable of in freight terms and to preserve that capability.

It is also looking for measures to ensure fair allocation of scarce spare capacity, charging and cost certainty for rail freight operators and their customers and good service reliability as a central key performance indicator for freight operating companies.

On June 30, the FTA's Rail Freight Council met to reassess industry's priorities for rail freight one year after the publication of the Rail White Paper.

The Rail Freight Council represents the interests of rail freight customers providing over 90 per cent of the traffic, ranging from the traditional rail users in the aggregates and heavy manufacturing sectors, through to new entrants such as retailers and parcel companies.

The substantial changes to the structures governing the rail industry recently have left FTA members with a low level of confidence over rail's future and their willingness to invest in and use rail freight services.

Uncertainty of charges, costs and unclear commitments to freight's future access to the network is creating an investment and service development hiatus, everyone is prompted to do nothing, it said.

In his letter to the minister, FTA chief executive Richard Turner said: “The end objective must be a reliable service that represents good value for money and ensures customers have a good experience of rail as a congestion bypass or a way to move heavy, bulk flows over short distances or a route to distant markets.

“Our council is concerned that there is overwhelming priority being given to the passenger sector. We understand and support the need to use rail to move people efficiently, but where does this leave rail freight?”