{"id":187216,"date":"2025-03-17T17:00:09","date_gmt":"2025-03-17T07:00:09","guid":{"rendered":"https:\/\/www.worldcargonews.com\/?p=71939"},"modified":"2025-03-17T17:00:09","modified_gmt":"2025-03-17T07:00:09","slug":"uk-rail-freight-holds-up-despite-slowing-economy","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=187216","title":{"rendered":"UK rail freight holds up despite slowing economy"},"content":{"rendered":"

Britain\u2019s rail freight operations are performing better than the UK economy overall. Despite the national performance teetering on the edge of recession, rail freight has shown a substantial upward trend. The quarterly review by the autonomous UK Government agency, the Office of Rail and Road, shows a six per cent improvement, year on year.<\/strong>
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The most recent figures for the UK economy pointed to a slight dip in overall output. By contrast, freight moved by rail in the UK was at its highest level by most metrics in the period from October to December. Domestic flows provided the biggest improvements, suggesting a positive shift in the face of poor economic results.<\/p>\n

Access charge discount scheme<\/h2>\n

The Office of Rail and Road provides a quarterly review of rail freight performance in the UK. Good figures from the sector are to be welcomed, with the caveat that rail freight only accounts for about ten per cent of total goods movements. A slight modal shift to rail can be misinterpreted in that light. The total freight moved was 4,065 million net tonne kilometres in the latest quarter (1 October to 31 December 2024). That\u2019s up six per cent year on year. However, the consolidated figure for road transport is around 41 million net tonne kilometres (based on the annual figure).<\/p>\n

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Screenshot<\/figcaption><\/figure>\n

The figures were welcomed by the industry-wide association, Rail Partners. \u201cIt is promising to see that freight volumes have continued to recover in the last quarter,\u201d said Andy Bagnall, their chief executive, who noted an influential initiative. \u201c[National infrastructure agency] Network Rail\u2019s 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.\u201d<\/p>\n

Modal shift bounty<\/h2>\n

The latest figures also reflect some other initiatives underway to encourage a modal shift to rail. Among them is a government-backed education effort, which recently included a workshop hosted jointly by representatives of Network Rail and the trade body Logistics UK. The \u201cDemystifying Rail Freight\u201d workshop<\/a> was designed to encourage new customers onto the rails in support of the Government\u2019s desire for a 75% increase in rail freight overall<\/a> by 2050.<\/p>\n

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Screenshot<\/figcaption><\/figure>\n

More tangible has been the success of a modal shift incentive programme at Southampton. The operators of the container port there, DP World, have 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.<\/p>\n

Encouraging domestic growth<\/h2>\n

Rail freight can offer some solace to the beleaguered UK chancellor, Rachel Reeves, whose economic policy is under savage criticism for failing to deliver growth. Domestic intermodal (non-maritime) traffic increased by 14% compared with the same quarter the previous year. It was the highest October to December quarter volume since 2020. \u201cRetailers using rail in December to keep stores stocked for Christmas boosted volumes,\u201d said the ORR.<\/p>\n

The other sector to show significant growth was also unexpected. \u201cBiomass 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.\u201d<\/p>\n

Critical of widening cost gap<\/h2>\n

The two biggest commodities on the UK rail freight network continue to dominate the market. Maritime containers performed strongly, while Britain\u2019s building boom continued unabated. \u201cConstruction saw an uplift of nine per cent, recording 1,326 million net tonne kilometres,\u201d said the ORR. That\u2019s 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. \u201cThe transfer of materials to [the high-speed rail project] HS2 construction sites continues to be a significant factor,\u201d revealed ORR.<\/p>\n

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Total amount of domestic goods lifted, goods moved, and vehicle kilometres travelled by GB-registered Heavy Goods Vehicles in the twelve-month period ending September 2024<\/figcaption><\/figure>\n

Andy Bagnall from Rail Partners did criticise the Government for failing to address a widening gap between road and rail freight costs. \u201cWith rail costs rising three times faster than road, 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,\u201d he said. \u201cFreight 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.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the national performance teetering on the edge of recession, Britain’s rail freight has shown a substantial upward trend.<\/p>\n","protected":false},"author":10,"featured_media":71941,"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":[72,6293,10100,85,15898],"tags":[12159],"class_list":["post-187216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-office-of-rail-and-road","category-statistics","category-uk","category-uk-rail-freight","tag-world-cargo-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/187216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=187216"}],"version-history":[{"count":4,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/187216\/revisions"}],"predecessor-version":[{"id":187389,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/187216\/revisions\/187389"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/71941"}],"wp:attachment":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=187216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=187216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=187216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}