Shifting policies in Mainland Europe could see the wagonload freight market go the same way as the UK. It has been decades since the traditional pick-up goods train operated on the lean, mean, streamlined British network. That is an operational choice that is being looked at, with curious – possibly envious – eyes from the other side of the Channel.
Germany could be reshaping its traditional wagonload freight, while the UK has all but abandoned the concept in favour of intermodal flows. DB Cargo’s wagonload restructuring aims to make the mode sustainable. In Britain, the equivalent has been replaced by point-to-point container services. However, in both those markets, and across Europe at large, is the railway surrendering a traditional mainstay in the face of modern logistics?
DB Cargo cuts complexity in wagonload
The cultural image of the “pick-up goods” lingers in the UK, but it is no longer a reality. The last vestiges of wagonload, such as short nuclear flask trains, are a specialised niche rather than part of a wider freight network. Britain does not have the large marshalling yards that are still common in mainland Europe – or rather, it does not use them for their intended 1960s purpose, of consolidating wagonload freight operations in large hubs. That intrinsically sensible idea was implemented just as the British network was backing out of the market completely.
In April, as reported by RailFreight.com, DB Cargo announced changes to its wagonload network with the same purpose as Beatles-era Britain. The (yet to be revealed) plan is designed to cut costs and improve reliability by reducing the number of long-distance connections and streaming runs between marshalling yards to serve key flows. British Railways Modernisation Plan all over again, say the cynics.
Losses mount despite higher volumes
Wagonload remains a significant part of DB Cargo’s business. Around fifteen per cent of rail traffic in Germany is wagonload, and DB Cargo handles around 90 per cent of that. It also generates most of the company’s losses. Even with subsidies, the operator says it must cut costs to survive. They have already warned that up to five thousand jobs could go by 2028. For tired old British eyes, it’s very much a case of history repeating itself.
There is government backing. In May, the European Commission approved a €1.7 billion German state aid scheme. This will channel €320 million a year into keeping wagonload and short block-trains on the rails. The figures are staggering when compared with Britain’s Swinging Sixties plans, but the impacts are potentially the same. Britain’s wagonload network was dismantled decades ago.
Lessons from history
The closure of British Rail’s Speedlink in 1991 ended the last generalised wagonload service. Local sidings, often beside passenger stations, are a thing of the past. The only surviving operation resembling wagonload is the nuclear flask traffic. These short, specialist trains carry spent fuel from nuclear facilities. They are highly regulated, irregular, and far removed from the old pick-up goods.
In the UK, rail freight has pivoted almost entirely to intermodal container traffic, as noted by WorldCargo News. These are point-to-point flows, linking major ports or inland terminals with large logistics parks. They do not serve multiple intermediate sidings along the way. This concentration has brought efficiency and volume, but it is a different model. Without a wagonload network, industries off the intermodal grid rely heavily on road haulage. Could Europe be following Britain’s lead?