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Logistics UK responds as HS1 told to cut access charges by 10.4%


Some positive news for rail freight as regulator announces that train companies which use a high speed rail line that runs through Kent will be charged less to use the track from April.

The Office of Rail and Road (ORR) has announced that the amount paid by operators to use the High Speed 1 (HS1) line for five years from April 2025 should be cut by 10.4%.

HS1 is used by Eurostar trains to Paris, Brussels and Amsterdam, domestic Southeastern services between London and Kent and freight trains heading to and from the Channel Tunnel.

The ORR ordered the line, which is owned by private investors, to lower access charges after carrying out a review of the company's latest spending plans.

It stated: "The company is being directed to reduce its charges for renewing its track assets and its stations, including St Pancras.

"ORR was able to identify specific areas in the company's spending plans where further improvements can be made, resulting in savings to passenger and freight train operators.

"ORR's view is that better management of the track and station assets can result in lower charges, ultimately benefiting customers."

Ellis Shelton, Logistics UK's Senior Policy Advisor said: "Logistics UK has consistently advocated for a reduction in track access charges for Freight Operating Companies (FOCs) as a core element of our ongoing 'Levelling the Playing Field' policy initiative and campaign. Track access charges, which are fees paid by FOCs to use the rail network, represent a significant cost burden for the rail freight sector. These charges can act as a barrier to growth and innovation in the industry, limiting its ability to compete effectively. 

Calling for a reduction, the aim is to create a more equitable competitive environment between different modes of freight transport.” 

Feras Alshaker, the ORR's Director of Planning and Performance, said: "Our review of HS1 Ltd's spending plans has resulted in significantly lower costs for train operators.

"Although HS1's original plans were good, the company must now change specific areas of those plans to account for our decisions."

HS1 Ltd Chief Strategy and Regulation Officer, Mattias Bjornfors, said: "We are pleased to see the ORR's positive endorsement for our plan for the next five years.

"Our plan for 2025-2030 includes proposals to enhance efficiency and reduce the cost of operating the high-speed line, incorporating innovations like track deterioration modelling to better target renewal investments."

Published On: 09/01/2025 16:15:45

 

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