Thinking back to the Bradshaw Address earlier this year, the commitment from Government to progress plans for reform was significant for the rail industry, particularly freight, which was mentioned specifically. It seems we have made real progress in moving away from the ‘and freight’ mentality when thinking about our rail network, to freight being at the forefront of decision-makers’ minds.
I was particularly pleased that the Transport Secretary, Mark Harper chose to single out the Strategic Freight Unit (SFU) in setting out the key role he sees freight in the wider rail reform agenda. Within this, it is apparent that Ministers are committed to a long-term growth target for rail freight, using it as an opportunity to talk about freight and the possibilities. The growth target will act as a catalyst for commitment in the rail freight sector by setting a clear ambition for growth and modal shift to rail bringing us into line with many neighbouring countries.
This growth target is important, not only to provide direction and leadership to the industry but also to reinforce Government support for growing rail freight. This is vital because we know growing rail freight can take up to 129 lorries off the road, reduce carbon emission by 76 per cent and each year, carry over £30 billion worth of goods, contributing to the UK economy.
In 2022, we ran a call for evidence, attracting high-quality responses from stakeholders both within and outside the world of rail freight. Respondents were invited to provide their views on the current barriers to using rail, to outline their ambitions for rail freight growth, and to comment on how a future growth target should be designed and delivered.
The potential for rail freight to support decarbonisation of supply chains, the support for freight growth on the rail network, and unanimous support for a long-term growth target were common themes received from across both public and private sector. The feedback received has been fed into a Call for Evidence summary report which can be found on the GBRTT website.
Once Ministers have announced a growth target, the key question remains over how we facilitate growth. Today rail freight holds a circa nine per cent share of surface market transport, but with notable strength in specific sectors such as construction, intermodal, automotive, energy and metals. There is an opportunity for rail freight to both further its share of existing proven rail markets as well as to offer provision for the freight curious or those who have simply never considered rail in their supply chains.
The SFU’s market development work is underpinned by a need to identify these new-to-rail opportunities, using an understanding of the rail addressable market, inhibitors to progress and activities to promote the use of rail. Through this, we have identified four pillars for growth: informing, promoting, enabling and delivering.
Taking each in order, to deliver growth, the SFU needs to be alert to and informed of developments in sectors that could use rail to deliver goods. Disseminating this information internally and externally will be fundamental to success. Secondly, the SFU as part of GBR will be in a commercially neutral position to lead the promotion of rail freight, working with operators and end users throughout.
When it comes to ‘enabling’, the SFU will identify opportunities through market research, to enable the delivery of new terminals or to progress the capacity or capability required to enable a service to operate. Delivery will follow, bringing forward schemes and activities – such as engaging regional sponsorship and network enhancements – to realise the benefits of investment.
Through these pillars, we are exploring opportunities for Integrated Rail Freight Interchanges (IRFIs) across Britain. Using GBRTT’s market assessment report and work with regional freight forums we have identified several locations including Exeter Riverside Yard; Port of Bristol, Avonmouth or Portbury former coal terminals; Tyne and Wear, Tyne Yard or Follingsby Park; Buxton Sidings; and Spalding. In line with this, we are pursuing a Freight Estate Development Fund allocation in CP7 to unlock further opportunities going forward.
As we strive to increase mode share and market opportunities, GBRTT has recruited resource to develop integrated advocacy plans for rail freight, to build advocates for freight both internally at GBRTT and externally, from subnational transport bodies and local authorities to MPs and potential new-to-rail customers.
Advocacy will deliver consistent messaging about freight, its benefits and how it supports growth in the UK economy.
Enabling people from a variety of backgrounds to think actively about the potential for rail when moving goods will be a measurement of success and provide direct opportunities to expand rail freight’s customer base.
The four pillars for market development - combined with a credible growth target and advocacy for freight - will be the backbone to GBR’s work in the SFU. That being said, it is ultimately through GBR and the industry working hand in glove that we will deliver the growth we all wish to see for rail freight. The decisions over the next 12 months will build the foundations for a revitalised railway with our customers at its heart.
For more information, please visit: https://gbrtt.co.uk/