The Green Miles nine question decarbonisation challenge

9. What are the biggest common sustainability challenges facing the whole logistics sector in your opinion?

Often the biggest common sustainability challenge for the logistics sector is finding a consensus and getting agreement on the right way forward.

What we do know is that in terms of greenhouse gas emissions, domestic transport contributes around 30% of the UK’s carbon emissions. We know it is critical to remove carbon from supply chains and meet our collective sustainability goals.

Rail is already the greenest transport mode and provides a clear path to net zero, however, we need the right framework to get the logistics sector working cross-modally, supporting greater modal shift to enable a higher utilisation of rail.

8. What are the hottest topics in decarbonisation for the HGV sector?

Battery technology has been advancing and progressing over recent years but charging capacity, capability and range of battery HGVs remains a hot topic.

Electric HGVs could play a key part in supporting end-to-end green logistics chains. Short-haul journeys to and from railheads are not impacted by any limited range and therefore battery HGVs can be best optimised as part of intermodal journeys. Freightliner recognises the benefits that electric HGVs can bring for rail and have invested in a fleet of electric HGVs to provide a sustainable transport solution for our customers.

7. Do you think the UK’s net zero goals are realistic?

The Government net zero targets are not just a ‘goal’ – we have a legal obligation, as well as a moral obligation, to meet them. The cost of not reaching net zero carbon emissions would be far higher for the UK.

With rail, there is a clear route to net zero. Freightliner has the largest electric locomotive fleet in the market, which can transport goods with virtually no emissions. Even with a diesel locomotive, each tonne of freight moved by rail instead of road reduces emissions by 76%. However, rail can do more. We have invested heavily in utilising alternative fuels which also provide a more carbon efficient solution on the rail network where electric traction cannot operate.

6. What are the specific challenges faced by the different modal sectors?

There is a real disparity in government policies towards each sector. Joining up policies across the modes will help level the playing field and ensure that we are leveraging the strengths of each mode and ensuring that road and rail are optimised and delivering maximum value.

This hasn’t been the case over recent years. For instance, we have seen fuel duty frozen for the past 14 years, during which time track access charges paid by rail freight operators have increased in real terms and by inflation each year.  Over the past 8 years, costs for rail have increased 3 times faster than road costs. To deliver the greatest economic and environmental benefits, road and rail need to work together efficiently and productively and that requires joined-up policy making.

5. What are the best examples of positive breakthroughs you have seen in the last decade?

In the last decade, the momentum towards modal shift has been really positive. The benefits – both environmental and economic – of moving freight by rail are much better understood and there is a clear desire to shift more freight to rail. This has seen the Government setting the rail freight growth target – to grow rail volumes by at least 75% by 2050.  

The development of battery technology has also been positive, and that has seen the development of increasingly capable bi-mode and hybrid freight locomotives. Advancements in alternative fuels now also provide a quick and effective route for taking carbon out of UK supply chains as a transitional fuel.

4. Who is an inspirational figure in logistics?

Without Malcolm McLean, the inventor of the modern intermodal shipping container, Freightliner would not be operating as a business today. It was in the 1950s that McLean brought his idea to life, transporting containerised goods via shipping vessel. The containerisation of goods has enabled for efficient transportation across rail, road and sea, both globally and domestically, ensuring the efficient functioning of global supply chains. As we celebrate Freightliner’s 60^th birthday this year, it would be remiss not to consider the role of containerisation in our success.  

3. With the growing emphasis on sustainability, do you see rail freight competing with road and air transport?

Yes – rail freight is already competing with road and air freight.

The Government has ambitious growth targets to generate even greater environmental and economic benefits from rail freight. We know that achieving these targets will require modal shift from road in order to move goods more sustainably. There are also some goods which are more traditionally moved by air transition which could utilise rail as a lower carbon alternative, including parcels and other high-speed logistics.

We know that all transport modes will need to work together in order to build an integrated low carbon network that transports goods efficiently from A to B.

2. How do logistics companies deal with ‘first mover hesitancy’?

An effective way to deal with ‘first mover hesitancy’ is via incentivisation.  We have seen how effective Network Rail’s Track Access Discount Scheme has been in getting new services up and running, with a period of free track access helping address concerns from customers around needing to grow volumes or helping with some start-up costs.

DfT’s First of a Kind fund has also helped to develop new technologies and solutions for the sector. Further grants or incentivisation would better support the commercialisation of these initiatives to help with their implementation.

1. What does 2025 look like for logistics decarbonisation?

2025 is expected to be a very important year for the railway. We’re expecting legislation to be laid in Parliament in the Autumn to create Great British Railways. While the freight sector isn’t changing, our operating environment will. There will be changes to legislation and regulations to nationalise most of the passenger train operators within Great British Railways.

This creates a real opportunity to consider the legislation and the policy framework that will ensure that investors continue to make investments that allow rail freight to drive growth and take even more carbon out of logistics.  

Published On: 09/06/2025 12:00:10