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Passenger numbers fall, demand for rail freight rises


What a difference a year makes. Unsurprisingly, given the government’s ‘stay at home’ guidance, the number of passengers on the rail network has declined significantly since March 2020.

Total journey numbers dropped by a staggering 51 million during Q4 of 2019-2020. Previously, the rail network was operating at or near full capacity, affording little scope for rail freight to grow, but this unprecedented collapse in passenger traffic presents an opportunity to unlock new opportunities for rail freight, at least in the short term.

“The rail freight industry already contributes £870 million per year to the UK economy,” said Zoe McLernon, Logistics UK’s Multimodal Policy Manager, “but if there was sufficient capacity to meet demand, then potential growth would be substantial.”

INCREASED DEMAND FOR FREIGHT FORECAST

Network Rail’s freight review forecasts a freight tonnes per km growth of three per year until 2033. Increasing demand for rail freight is driven by an increase in global trade and in supply chains serving retailers across the country. Clearly passenger rail services remain crucial, however, and the recovery of passenger rail is vital for the rail network as a whole.

CONSTRAINED CAPACITY FOR RAIL FREIGHT

The evidence shows that the capacity for rail freight is constrained at present. Freight train movements have almost halved over the last 15 years, from 416,053 in 2003/4 to 220,711 in 2018/19 while passenger usage has soared. Rail freight operators have delivered substantial improvements to productivity and efficiency during this period, and despite the capacity crunch, rail freight has maintained its market share compared to road and water over the same period, at around five per cent of freight lifted and around nine per cent of freight moved.

“At Logistics UK, we want the decline in passenger numbers to unlock new growth opportunities for rail freight and modal shift,” said McLernon. “We should consider whether under-utilised, non-peak passenger service routes could be used for freight temporarily. For example, Network Rail introduced reduced passenger timetables in response to the pandemic while allowing more freight trains to run, to help meet consumer demand for food and other critical supplies.”

With rail freight operators enjoying this increased access to the network, punctuality and reliability of freight movements has increased consistently since March 2020.

LONG-TERM MODAL SHIFT

When passenger numbers do finally return to pre-pandemic volumes, freight paths will still add value to the rail network and the wider economy, McLernon argues.

“The government and other stakeholders must create the right environment for rail freight to thrive,” she said. “A reduction in or freeze of track access charges is essential to ensure competitive prices and reliable services, along with implementing a number of additional measures, including the operation of heavier and longer trains, higher average speed, and increased utilisation of wagon space.”

As well as bringing increased capacity, this will lead to more effective timetable planning, signalling systems and infrastructure improvements.

“At Logistics UK, we are involved in Network Rail’s Freight Strategy Programme Board,” McLernon said, “a group dedicated to identifying future strategies for rail freight and will be feeding in the Board the importance of freight paths and their value to the UK economy.”

DEMAND FOR RAIL FREIGHT SET TO INCREASE

The number of rail passengers across the UK has declined significantly since the pandemic took hold, while the need for rail freight services has increased to meet the demand for food, medicine, and other critical supplies.

“With rail set to be vital in supporting a green economic recovery for the UK,” McLernon concludes, “it is imperative we see government and other stakeholders – in addition to rail freight operators themselves – ensure they are utilising the opportunities the fall in passenger services presents.”

*www.logistics.org.uk/rail

Published On: 04/03/2021 17:00:17

 

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Zoe McLernon, Multimodal Policy Manager, Logistics UK

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