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How has industrial action impacted rail freight?


Rail freight is vital to the UK economy for two reasons. Firstly, it carries over £30 billion in goods and contributes £2.45 billion to the UK economy each year.

Secondly, it is vital for achieving net zero; rail freight is estimated to reduce the need for seven million lorry journeys each year, preventing a staggering 1.4 million tonnes of CO2 emissions annually.

“Maximising the role of rail as part of an integrated logistics system will see additional modal shift from road to rail, reducing emissions further,” said Ellis Shelton, Policy Advisor, Logistics UK, “This must be supported by increased capacity on the railway for freight, additional infrastructure and space for logistics to facilitate multimodal interchange at key hubs, and fairer track access charges.”

INDUSTRIAL ACTION REDUCES CAPACITY

While the rail freight sector has not directly been involved in the recent industrial action disputes, strikes amongst Network Rail signallers have reduced the operating hours of the railway. As a result, industrial action has indirectly impacted the freight sector by leading to reduced capacity on the network. Around 30 per cent of all freight movement was cancelled on strike days, while total rail freight moved between 1 July and 30 September 2022 was four billion net tonne kilometres lower when compared with the same time period in 2021.

In response to recent strike action, government has proposed a Strikes (Minimum Service Levels) Bill which, if passed, would allow the Transport Secretary to make regulations outlining the minimum service required for rail during industrial action. At present, there is no general requirement to maintain minimum service levels in critical services under UK trade union law. The government has said that rail is one of the sectors for which the legislation would be implemented first, whilst unions and workers would have to comply with these, or face losing protections against being sued or dismissed.

“It’s worth noting, however, that the Bill does not restrict unions from calling industrial action short of strike, such as the overtime bans which are currently materially impacting services across the railway network,” Shelton said.

TRANSPORT COMMITTEE LAUNCHES INQUEST

In reaction to this proposal, the Transport Committee has launched an inquiry to examine the practical effects of the Bill on the rail sector – both passenger and freight – and has announced a call for evidence. The committee plans to scrutinise the process by which minimum service levels for rail will be defined in regulations, and how they could work in practice, should the Bill become law. Within the call for evidence, the committee has asked both public and freight operators to respond, addressing how minimum service levels could operate on the railway and the particular factors that need to be taken into account in rail.

Shelton said: “In response, Logistics UK has highlighted how, whether during normal or shortened hours, sufficient paths should be made available to rail freight operators to allow for the continuation of freight being transported, given its significant value to the country – both economically and environmentally.”

TRANSPORT SECRETARY DECLARES MODEL BROKEN

Transport Secretary Mark Harper MP described the current model as broken in the George Bradshaw address 2023, his first major speech on rail. Commenting that it was financially unsustainable and unfair to continue asking taxpayers to foot the bill, the Minister recognised that, if left untreated, passengers would be driven away by poor performance, leading to fewer operational services, and stated that only major reform can break the cycle.

“The speech reaffirmed government’s commitment to rail,” Shelton said, “such as its £96 billion investment into the Integrated Rail Plan, emphasised the importance of rail freight and provided greater clarity surrounding the creation and role of Great British Railways (GBR).”

SHIFTING RESPONSIBILITIES

Currently, ministers can become involved in decisions affecting timetables and other operational matters. However, moving forward this will be the responsibility of experts in given regional GBR divisions, working in close partnership with regional bodies.

“Along with the creation of a dedicated Strategic Freight Unit, this is an encouraging step forward for rail freight growth,” Shelton said, “showing a greater recognition of the importance freight plays on the network.

“Overall, Logistics UK is pleased that the important role rail freight plays in the UK economy is being acknowledged on a wider scale and hopes that, with reform, we will see a greater prioritisation of the sector, including during periods where a reduced timetable is operating.”

*www.logistics.org.uk/rail

Published On: 02/03/2023 16:00:38

 

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