In an interview with WorldCargo News, Maggie Simpson looks forward to 2025 with some characteristic optimism.
In what is still a predominantly trading nation, port handling growth is a priority above all. “It is great to see the sustained growth of maritime intermodal traffic,” says Maggie Simpson, director general of the Rail Freight Group, “We also know there is significant potential for other traffic to and from UK ports, including marine aggregates and support for clean energy schemes. This means we need to have excellent inland rail links between ports and their hinterlands.”
It is suggested to Simpson that ports such as Grangemouth, Liverpool, London Gateway and Teesside – where the RFG held a recent conference – are all areas where rail infrastructure is constraining expansion ambitions. It’s something she says is not an immediate problem, but where it is essential that the right investments are made to support growth. “This includes critical schemes such as Ely Junction [a pinch point for rail traffic serving Felixstowe], but also ensuring trains are as long as possible, that we can run effectively at weekends and that services are as productive as possible. The government’s Industrial Strategy [a wider policy currently fixated on clean energy initiatives] and supporting investments need to look at how port links can be made as effective as possible.”
Growth is in the post
Simpson is a fan of the incentive scheme operated by DP World at Southampton, which pays shippers to move boxes inland by rail instead of road. She endorses its continuation. “The DP World scheme has been an enormous success both in bringing traffic onto rail and also in taking the opportunity out to smaller shippers and forwarders who may not have thought about using rail, particularly for smaller volumes. It is good to see that the scheme has been extended into 2025,” she said.
That enthusiasm extends to express logistics and the parcel market. “There are huge opportunities here, particularly as new rail-linked locations come on stream at pace,” observes Simpson enthusiastically. “We are seeing growth in non-maritime intermodal as well as express logistics. We expect to see more services come on stream this year. Consolidating traffic for rail can be challenging, but customers are stepping up their efforts to make this work from key sites too.”
Aggregates remain important
Britain’s headlong rush to a green economy does, paradoxically, have benefits for the rail freight industry. Abandoned coal traffic has left a legacy of rolling stock, which is now being repurposed to serve other bulk flows, including aggregates.
This is opening up new opportunities for shorter haul routes. “Rail has traditionally worked well over longer distances, but in recent years, we have seen shorter aggregate flows being developed, for example, into the terminal at Washwood Heath in Birmingham,” says Simpson. “Using rail helps construction businesses decarbonise their operations and be more productive. We expect to see more sites opening to support economic development wherever it happens across the country. This could include supporting the construction of new towns, or infrastructure for green energy.”
Technology down the line
The green agenda, pursued by the UK government (still less than one year in office) and the almost parallel digital revolution in the global economy, are forcing the rail industry to modernise. “We are standing behind all our members who strive to innovate with our Digital and Innovation forum and support for member activities,” says Simpson.
These activities include a radical reworking of a 1930s-designed diesel switcher into a modern electric locomotive – the 08e shunter project; the delivery of advanced bi-mode (diesel-electric and grid power) and even tri-mode (diesel-electric, batteries and grid power) locomotives to the UK industry; and intelligent telematics for freight rolling stock. “It is particularly good to see wagon technology moving into production with several customer orders in place, and it will be interesting to see how this delivers its potential over the year ahead,” she says. “These are all excellent examples of innovation in the market, and ultimately it is the market that will decide which are the most important.”
Complicated
Politics and transport policy, however, are much more challenging. “The policy space is complicated, with a still new government identifying its priorities,” Simpson says, noting the programme of rail reform now underway, alongside a raft of other political priorities. “Freight and logistics are not being particularly well recognised,” she adds, with some concern.
One area where Simpson sees good potential for UK rail freight is in cross-border traffic. “There remains huge potential to do more rail via the Channel Tunnel,” Simpson said. “The recent decision to reduce access charges on HS1 [the dedicated London – Channel Tunnel line] has the potential to unlock new routes when it starts in April, so it is a really exciting time for this corridor.”
*This interview first appeared in the January print issue of WorldCargo News.