{"id":185396,"date":"2025-03-12T17:00:50","date_gmt":"2025-03-12T07:00:50","guid":{"rendered":"https:\/\/www.worldcargonews.com\/?p=71547"},"modified":"2025-03-12T21:45:50","modified_gmt":"2025-03-12T11:45:50","slug":"felixstowe-sale-raises-inland-rail-issues","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=185396","title":{"rendered":"Felixstowe sale raises inland rail issues"},"content":{"rendered":"

In Britain, it\u2019s not just the UK\u2019s biggest container port that\u2019s about to change hands. The sale of Felixstowe will also see Britain’s busiest rail freight terminal move from the management of Hutchison to Mediterranean Shipping Company. MSC has a demonstrable record in the rail freight sector.<\/strong>
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The movement of freight trains rivals the movement of ships around Felixstowe. More than 35 intermodal formations depart the extensive rail yards every day. There is capacity for even more. Hopes are already being expressed that the likely new owners will have a say in realising that potential.<\/p>\n

Consortium includes rail interests<\/h2>\n

Before Britain\u2019s busiest rail freight terminal gets even busier, there are a few chickens to be hatched. First of all, the global purchase of port assets needs to go through. As was reported last week here on WorldCargo News<\/a>, the BlackRock-TiL Consortium, which includes the interests of MSC, is acquiring Felixstowe as part of a wider deal covering 43 ports managed by Hutchison Port Holdings.<\/p>\n

\"Port
They like it so much, thet’re buying it. MSC Lorenza at the Port of Felixstowe<\/figcaption><\/figure>\n

The deal will catapult MSC up the global league of port operators, but there is more to the company than its maritime interests. MSC, particularly through their European subsidiary, Medlog, is active in all aspects of landside logistics. It has not escaped mention in the UK that Medlog is principally a rail freight operator.<\/p>\n

Making moves on UK rail operator<\/h2>\n

It may be premature to speculate over Medlog’s involvement at Felixstowe. However, even at arm’s length, that could spark a shake-up in the UK rail freight picture. Medlog has been acquisitive on the Continent, and it has been well reported (notably on RailFreight.com<\/a>) that at least one British rail freight operator is on the market.<\/p>\n

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Freightliner UK hauls intermodal – and is attracting interest from suitors<\/figcaption><\/figure>\n

Freightliner\u2019s management in the UK made clear that the business is open to suitors. If MSC was eager to vertically integrate its Felixstowe operations, what better than to acquire a fully-fledged operation? However, others may have similar ambitions.<\/p>\n

Other suitors are active already<\/h2>\n

At Southampton, DP World\u2019s intermodal initiative – which pays a bounty to shippers for choosing rail for inbound distribution – is a continuing success. The Middle Eastern operators could well be thinking along the same rail lines. Unconfirmed reports say a delegation was spotted reviewing rail freight engineering facilities at Crewe in northwest England.<\/p>\n

If DP World were to steal a march on their rival operators, then acquiring Freightliner\u2019s rail interests would make commercial sense. Not least in Freightliner\u2019s portfolio of terminals is Trinity. This rail, road and sea facility is popular with shippers, and it just happens to be right outside the gates of Felixstowe.<\/p>\n

At least another ten trains<\/h2>\n

Regardless of whoever raises their flag above the east coast port, there are existing issues with rail freight operations at Felixstowe. With the port handling almost half of all UK maritime intermodal traffic, there is much scope for expansion. Over 35 intermodal trains are dispatched daily – with the number only restrained by capacity on the lines out of the port, and the critical railway hub at Ely, through which all westbound traffic must pass, heading for the logistics golden triangle in the English East Midlands.<\/p>\n

Rail capacity into Felixstowe is a long-standing issue on the national network. According to research from the representative Rail Freight Group, at least another ten trains a day could be handled by the port, if onward capacity was available. However, at present, the UK government appears more eager to upgrade the main road route (the A14 highway), despite its stated intentions of increasing rail freight significantly by 2050.<\/p>\n

UK rail freight interests<\/h2>\n

MSC already has a place in the rail freight market in the UK. Its rail subsidiary, Medlog, is the owner of Maritime Transport. Maritime trains and trucks are a common sight on the rails and roads of Britain. Their commitment to rail freight is well established. The company has a ten-year agreement with DB Cargo UK, which runs until 2029. That commitment is solid enough for a fleet of seven class 66 diesel locomotives to be liveried for Maritime.<\/p>\n

The British International Freight Association recognises the need for inland infrastructure improvements. \u201cMSC is a carrier that operates independently of any shipping alliance,\u201d they said in a statement. \u201cThis takeover significantly strengthens their terminal business both globally and in the UK. However, it does mean that important infrastructure upgrades to the Ely [and] Haughley rail junctions and strategic roads network become ever more important.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The sale of Felixstowe will also see Britain’s busiest rail freight terminal move from the management of Hutchison to MSC.<\/p>\n","protected":false},"author":10,"featured_media":43279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[3032,3762,1931,89,90,12339],"tags":[12159],"class_list":["post-185396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dp-world","category-felixstowe","category-freightliner","category-medlog","category-msc","category-ports-terminals","tag-world-cargo-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t