{"id":84228,"date":"2024-07-10T20:33:52","date_gmt":"2024-07-10T10:33:52","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=54287"},"modified":"2024-07-10T20:33:52","modified_gmt":"2024-07-10T10:33:52","slug":"uk-royal-mail-withdraws-from-rail-distribution-after-200-years","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=84228","title":{"rendered":"UK Royal Mail withdraws from rail distribution after 200 years"},"content":{"rendered":"

There is bitter disappointment within the UK rail freight industry on the news that Royal Mail, the flagship postal carrier in the nation, is to abandon rail from its delivery proposition. The company, founded by royal decree over five centuries ago, has been an integral part of the British railway industry since 1830, only four years after the inception of the commercial railways in 1826.<\/strong>
\n<\/span>The privatised Royal Mail, which is in the process of a buyout by a foreign owner, has been widely reported as being in the process of selling its fleet of specially built electric multiple units (designated Class 325). The traffic will be transferred to road transport. The decision will end the concept of the \u201cmail train\u201d after nearly two centuries. The move has raised eyebrows – not least because the chair of Royal Mail is Keith Williams – who was also the co-author in 2021 of the wide-ranging government report: \u201cGreat British Railways: Williams-Shapps plan for rail\u201d.<\/p>\n

A blow for many dedicated colleagues<\/h2>\n

The dismay from the rail freight industry has been led by DB Cargo UK, the contract holder with Royal Mail as the operator of the Royal Mail rail service. DB Cargo UK chief executive Andrea Rossi broke the news in a morning address to all staff at the rail freight operator. He has told staff that the Royal Mail decision to cease all its rail freight activities will take effect from 10 October 2024.<\/p>\n

\"Andrea
Andrea Rossi, CEO of DB Cargo UK. Image: \u00a9 DB Cargo UK<\/figcaption><\/figure>\n

The Royal Mail decision is incredibly disappointing not just for DB Cargo UK, but the broader rail freight sector as a whole. \u201cThis decision represents a major U-turn by Royal Mail, which had previously committed publicly that it would increase its use of rail freight to help meet its own Net Zero targets,\u201d said Rossi. \u201cToday\u2019s decision is therefore a blow for DB Cargo UK and our many dedicated colleagues who have worked incredibly successfully over the years to meet Royal Mail\u2019s demands regarding reliability and punctuality.\u201d<\/p>\n

Lobby Government over electricity; sparks over Williams position<\/h2>\n

The degree of that \u201cu-turn\u201d might be exemplified by the words of Nick Dunn, then the National Distribution Manager at Royal Mail. In 2020, at the renewal of the contract, he spoke to DB Cargo\u2019s UK staff newsletter. \u201cRail is an integral part of our operation to move mail and parcels at pace so that we continue to give our customers a great service. DB Cargo has worked closely with Royal Mail to focus on the quality of our delivery service. This new contract offers an opportunity to grow and innovate together.\u201d Anyone reading that December 2020 edition of Team Red newsletter, may do so with some bitterness. There must also be questions raised over the conflict of loyalty for Keith Williams, whose position with the Royal Mail must be called into question.<\/p>\n

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Image: Wikimedia Commons. \u00a9 Hugh Llewelyn<\/figcaption><\/figure>\n

It\u2019s not long ago that Royal Mail was celebrating the vast expansion of its rail-based service. A strong statement from the rail operator did not pull any punches. \u201cDB Cargo UK, the UK\u2019s largest rail freight operator, will now be seeking urgent talks with the new Labour Government, policymakers and other key industry stakeholders, to see what more can be done to level the playing field between rail freight and the heavily subsidised road haulage sector,\u201d said the statement. \u201cFor some time now we have been lobbying the Government to address the issue of high EC4T charges (the price paid for running services on the electrified rail network) which are beyond the price many of our customers can afford to pay.\u201d<\/p>\n

Additional 10,000 heavy goods vehicle movements<\/h2>\n

The decision by Royal Mail, one of the UK\u2019s highest profile companies, is a direct challenge to the rail freight sector, and industry at large, to meet the UK Government\u2019s target to boost modal shift by 75 per cent by 2050. DB Cargo UK has been contracted to operate and maintain Royal Mail\u2019s 15-strong fleet of Class 325 electric trains since 1 June 2013. The fleet is owned by Royal Mail and maintained at DB Cargo UK\u2019s Crewe IEMD depot in the North-West.<\/p>\n

DB Cargo UK running 13 trains a week for Royal Mail. A new timetable was introduced on 16 June, which connects Shieldmuir with Princess Royal Distribution Centre, London; Warrington; and Daventry International Rail Freight Terminal. \u201cWe informed our recognised Trade Unions ASLEF (drivers) and United (Engineers) of Royal Mail\u2019s decision this morning,\u201d DB Cargo UK told RailFreight.com. \u201cBased on current volumes, we estimate that Royal Mail\u2019s decision will lead to an additional 10,000 heavy goods vehicle movements per year on the UK\u2019s road network.\u201d<\/p>\n

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Royal Mail only recently invested in rail connected facilities at DIRFT in Northamptonshire. Image: \u00a9 Winvic<\/figcaption><\/figure>\n

Possible new life in a logistics capacity<\/h2>\n

DB Cargo UK argues that its performance for Royal Mail has been consistently high throughout the term of the contract. Royal Mail has clearly stated that this decision has not been made due to any performance concerns. \u201cTo learn that Royal Mail is now planning to rely solely on road haulage to move customers\u2019 letters and parcels around the UK is not just disappointing for DB Cargo UK, but the wider rail freight sector too,\u201d said Andrea Rossi. \u201cRoyal Mail has made it clear that its decision is purely down to the increasing costs of electric traction (EC4T) and the high investment needs of its ageing 325 fleet. In fact, it has explicitly reiterated our excellent performance in operating and maintaining their services and units over the years. So, this is not a decision against DB Cargo UK but one against the economics of rail freight as a mode of transport.\u201d<\/p>\n

This is the first real transport crisis to hit the new Transport Secretary, Louise Haigh, and her Rail Minister, Peter Hendy, the former chair of Network Rail. The Rail Minister is already a prominent advocate of express logistics by rail. While still in his position as chair of the British infrastructure agency, he spoke at the launch of Varamis Rail in London, citing Royal Mail as an example of what might be achieved by new entrants to the sector. It has been noted that the Class 325 units are to be sold, not scrapped. There is the possibility that the units may yet find new life on the UK network, in a logistics capacity. What that may mean for the experienced engineers at DB Cargo UK, remains to be seen.<\/p>\n

Night Mail no longer crossing the border<\/h2>\n

DB Cargo UK is seeking urgent talks with the new Labour Government, policymakers and other key industry stakeholders, to see what more can be done to level the playing field between rail freight and the heavily subsidised road haulage sector. \u201cFor some time now we have been lobbying the Government to address the issue of high EC4T charges which are beyond the price many of our customers can afford to pay \u2013 indeed this is why we ourselves had to take the difficult decision to withdraw our Class 90s [electric locomotives repurposed from passenger operations]. The decision by Royal Mail, one of the UK\u2019s highest profile companies, shows that real change is needed now if we are to have any chance of meeting the Government\u2019s plan to boost modal shift by 75 per cent by 2050.\u201d<\/p>\n

Mail and its relationship with the railways is embedded in British culture. The extent to which the Political activist and celebrated poet WH Auden was inspired to write \u201cNight Mail\u201d – an iconic part of English literature, which is still celebrated to this day. The poem was written and used in the 1936 film of the same name.<\/p>\n