Rail freight is set to be brought to the fore after a huge £28.5 billion investment boost over the next five years following a financial settlement between the Office of Rail Regulation (ORR) and Network Rail.
The decision to determine this financial settlement followed a lengthy two-year process of discussion between Network Rail and ORR. During the negotiation period the Freight Transport Association (FTA) invited representations from both parties at its rail freight council allowing FTA members to express their views face-to-face.
Chris MacRae, FTA’s Rail Freight Policy manager, said: “FTA has been pushing for this resolution for a while and it is good news that the issue has finally been settled and won’t be referred to the Competition Commission.
“After two years of frustration we at last have the basis needed for meaningful improvements to be made to Britain’s rail network. Knowing what's in store for the coming five years will mean industry and our members can plan for future rail freight investments.
“We are particularly pleased with the reduction in freight track access charges - the cost to rail freight operators of using the rail network - by a third over the five-year period. FTA has campaigned hard for this as the knock-on cost reduction will give rail freight a competitive edge attractive to both existing and potential rail freight shippers.
MacRae believes the move will satisfy a growing demand for rail freight whilst offering an environmental alternative to other modes of transport: “Rail freight has enjoyed a renaissance over the past ten years for companies looking to improve their logistical performance and make the most of the environmental benefits that go with it.
“Shippers increasingly expect from rail the same efficiency and commercial viability as any other mode of transport. The impetus shown by ORR to drive down costs while increasing efficiency and standards is in line with these expectations,” he said.
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