The quarterly review by the Office of Rail and Road shows some good news for the industry. The total freight moved was 4,065 million net tonne kilometres in the latest quarter (1 October to 31 December 2024). That’s up six per cent year on year. For once, the big two (maritime intermodal and aggregates) did not make the headlines.
Freight moved by rail in the UK was the highest in the October to December quarter in four years, says the ORR. Intermodal non-maritime (domestic inland movements) and biomass (specialist flows, principally for the power generating station at Drax in Yorkshire) had the largest percentage increases in freight moved.
Initiatives taking effect
The latest figures reflect some initiatives underway to encourage modal shift to rail. These come as the UK Government has reaffirmed its pledge to deliver the nationalisation of the railways in Britain. The Great British Railways Transition Team (which will see in the new management) and the trade body Logistciscs UK, recently held a workshop. The “Demystifying Rail Freight” initiative is designed to encourage new customers onto the rails in support of the Government’s desire for a 75% increase in rail freight overall by 2050.
More tangible has been the success of a modal shift incentive programme at Southampton. The operators of the container port there, DP World, has continued its financial bounty to shippers who choose to move inland by rail. The company is considering extending the programme. There is speculation that London Gateway, their other UK property, could be involved.
Costs are still rising versus road
The figures were welcomed by the industry-wide association, Rail Partners. “It is promising to see that freight volumes have continued to recover in the last quarter,” said Andy Bagnall, their chief executive, who noted another influential initiative. “Network Rail’s new access charge discount scheme is benefiting freight operators introducing new flows. This shows the positive impact on rail freight growth that can be achieved when public and private sectors work together.”
Andy Bagnall was however critical of Westminster. He made an uncomfortable statement on the same day as the Department for Transport (the ORR’s parent ministry) announced almost £300m (€354m) of improvements to the M3 motorway, which connects Southampton with London – proclaiming its benefits to freight traffic – road fregiht traffic.
“Rail costs [are] rising three times faster than road,” said Bagnall. “Government needs to go further to create a more favourable environment for rail freight. This includes measures to address the widening cost gap between rail and road, as well as long-term access rights and a stable charging regime. “Freight operating companies want to invest in the UK and work with government to make rail more competitive, to help decarbonise the transport sector and reduce congestion on roads.”
Guess the infrastructure project
Intermodal non-maritime increased by 14% compared with the same quarter the previous year. It was the highest October to December quarter volume since 2020. “Retailers using rail in December to keep stores stocked for Christmas boosted volumes,” said the ORR. “Biomass volumes rose by ten per cent. It saw the highest October to December quarter since 2010, when biomass was first reported as a separate commodity. Greater demand for electricity resulting from colder weather and shorter days is a contributing factor. The biomass consuming generators at Drax and Lynemouth were both online in 2024, whereas Lynemouth was offline in 2023.”
Britain’s building boom is showing no signs of slowing down. The cranes of the skylines of Manchester, Birmingham and London are all testaments to that. “Construction saw an uplift of nine per cent, recording 1,326 million net tonne kilometres,” said the ORR. That’s the highest October to December quarter since the agency began recoding figures in 1998.
There is, however, one national infrastructure project that skews the figures positively for rail freight. “The transfer of materials to [the high speed rail project] HS2 construction sites continues to be a significant factor,” revealed ORR. “There have been new regular flows of construction spoils to Stewartby. Construction made up just under a third of all freight moved in the quarter, representing the second largest share of all freight moved.”
