The future of oil-by-rail freight in Britain is in question. A large volume of traffic is in jeopardy. This follows the insolvency of the Prax Group and the potential closure of its Lindsey Oil Refinery in North Lincolnshire, England. The UK’s largest refinery-based rail shipper plays a critical role in national energy logistics. It delivers up to 35 per cent of the country’s petrol and ten per cent of diesel. It also delivers aviation fuel to London Heathrow via pipeline.
Lindsey’s integrated rail terminal, capable of simultaneously handling five trains, had made it a pivotal node in Britain’s freight network. Its looming shutdown now threatens to strip the adjacent Port of Immingham of a significant part of its rail volume. It could leave freight operators scrambling to reassign assets and reconfigure their networks. The UK government has stepped in to financially secure the refinery while a buyer is sought, but some flows are reportedly on hold.
Disruption at Immingham and beyond
The refinery had underpinned regular flows from Immingham, including three daily services operated by Colas Rail, two to Kingsbury (Birmingham) and one to Jarrow (Newcastle), plus a weekly movement to Neville Hill (Leeds). Those routes are now in jeopardy. Flows have also been lost from Grangemouth in Scotland, pre-empting the closure of the small Dalston terminal near Carlisle. The potential loss of oil traffic offsets the resurgence in steel trains serving Scunthorpe and the earlier loss of bitumen traffic in the region.
Rail operators and terminal managers at Immingham now face a sharp fall in demand. With the refinery’s output paused and its long-term status unclear, rail-connected yards and support services are bracing for leaner times. Infrastructure, such as handling capacity and freight paths, may need to be scaled back, pending clarity on future volumes.
From rail to pipeline and sea
With Lindsey sidelined, other refineries, like Fawley (Southampton) and Stanlow (Middlesex near London), will likely absorb more national fuel distribution via pipeline or shipping, rather than rail. Fawley’s rail line has been the subject of unsuccessful proposals to reopen it for passenger services. The UK’s few remaining rail-dependent terminals may pick up some slack, but they cannot replicate Lindsey’s scale. In the interim, diverted flows could offer stopgap relief for freight operators, but long-term outlooks predict a sharp contraction in rail demand.
The shrinking role of rail in petroleum logistics reflects deeper restructuring. There were around 17 UK refineries in the 1970s. There are now only six, and that number is falling. Of those remaining, rail-served Grangemouth has already stopped production, and the loss of Lindsey would cement the shift away from domestic refining and toward overseas imports and diversified transport modes.
Industry faces reassignment and realignment
Assets such as locomotives, tank wagons and train crews, many of them dedicated to Lindsey’s flows, are now under review. Freight companies are already weighing alternative commodities or rerouting opportunities to maintain efficiency. However, any transition comes with cost and time implications.
“If full closure happens, we expect traffic to tail off quickly as tank stock is cleared,” said one operator familiar with the refinery. “We’re exploring other opportunities, but nothing replicates Lindsey’s throughput.” At least £50,000 (€59,000) per acre in sidings infrastructure may lie underused, adding pressure on port operators to justify facilities investment.