High-speed logistics – is rail the answer to a rising demand for express freight?

Chaired by Alex Veitch, Deputy Director – Public Policy, Logistics UK, the webinar included presentations from speakers from High Speed One, Network Rail and rolling stock company Eversholt Rail Group.

Introducing the webinar, Veitch said: “We are very excited by the prospect of using more express parcels, post and other kinds of express freight on rail. We are always talking to the government about the importance of rail freight, and pushing for grants, incentives and infrastructure projects that will help shift more traffic onto rail.”

THE VIEW FROM HIGH SPEED ONE

Ed Butcher, Head of Business Development at High Speed One (HS1), was the first to present. As a privately-owned high-speed infrastructure manager, operating the link between London St Pancras and the Channel Tunnel and four international stations, he described HS1 as being unique in the British rail sector. A self-funding railway which receives no government funding, HS1 is fully integrated into the extensive European high-speed network, he explained.

With just two customers – one being Eurostar and the other South Eastern trains which serve domestic passengers in Kent – and needing to adapt to changing market conditions following the pandemic, HS1 is keen to explore the concept of high-speed freight. Teaming up with its sister organisation in France – SNCF – it commissioned a study from independent consultant Transport Intelligence, asking it to outline both the competitive advantage of high-speed freight and the size of the prize.

The study found that the most likely target market is express parcels and the e-commerce market. More specifically, it identified bulk capacity between major cities, suggesting that a hub in Paris could use existing high-speed lines as spokes to major cities.

“What they pointed out was that the high-speed freight offer would be most aligned to the sector’s requirements, particularly in the ability to reach inner city to inner city in terms of connectivity, but also with the benefits of speed and volume that rail would bring,” Butcher said.

It was suggested that the initial introduction of high-speed freight services should be simple to prove the concept, using modified passenger trains with roll-on cages.

HS1 is now taking this forward by engaging with city and regional authorities which have a strong interest in decarbonising urban logistics. Conversations have included adapting the customs regime and creating a favourable investment environment by reducing costs and engaging with commercial partners.

“We’re ready to have those conversations, and as the sign says we’re open for business,” Butcher concluded.

AN OVERVIEW FROM NETWORK RAIL

Daniel Fredriksson, Development Lead for Express Freight at Network Rail, then delivered a Great Britain-wide perspective of the potential for express freight via rail.

Like HS1, Network Rail is the infrastructure manager that is responsible for the track, but it also has an overarching view of the system and how it works overall.

Network Rail sees express freight as a spectrum. At one end is simply using existing space on passenger trains, either by having parcels as passengers or by locking out entire coaches for express freight. The next step up the scale is having dedicated converted passenger trains, where the seats and tables have been removed to make way for racking and stacking. One step on from this is the intermodal and container traffic where freight volumes can scale up significantly.

On rail freight’s role in helping decarbonise transport, Fredriksson said: “We see it as something that fits in very well with Network Rail’s wider decarbonisation agenda and it can be a strategically important part of decarbonising UK plc.”

This would complement the road haulage sector’s transition to low-carbon transport and respond to societal shifts, he said.

During the pandemic, the volume of parcels and freight delivered via rail grew significantly and Fredriksson does not believe this is a trend that will be reversed: “It’s a permanent shift in how we live our lives and how we expect parcels to arrive with greater and greater speed and efficiency.”

Timetable capacity remains a challenge, however. Where passenger numbers have dipped, train services have at times been axed, but that does not mean that it would be a straightforward exercise to drop freight trains into these time slots.

Concluding his overview of what Network Rail is doing in the express freight space, Fredriksson said: “We think there’s still plenty to do, we think Great British Railways has some great opportunities, but working within the framework that we’ve got now, these are some of the tools and reports that we’ve been able to undertake to help the sector assess rail.”

A ROLLING STOCK COMPANY’S PERSPECTIVE

Last but by no means least to present was Sam Gillert, Account Manager at Eversholt Rail Group, a company which leases rolling stock to passenger and freight operators. With more than 3,000 vehicles, Eversholt Rail is one of the largest investors in both new and existing rolling stock, spending £145m on fleet refurbishment in the last few years.

“We own rolling stock and lease it to operators whether that’s passenger or freight operators,” Gillert said, “but we look at a whole asset in terms of its life maintaining fleet refurbishment and investment.”

Eversholt Rail started working in the freight market a couple of years ago and following extensive market analysis it decided to convert one first-in-class unit – known as a Class 321 Swift Express Freight Train – in July 2021.

Eversholt converted passenger units by removing all the seats and components. The 321s are electric trains operating up to 100mph, which also retain the flexibility to be hauled by diesel locomotive.

With a payload of up to nine tonnes per vehicle, 321s offer a wide network coverage, having operated across hundreds of miles of track from East Anglia to Scotland.

Gillert is optimistic about the scale of the opportunity for express freight: “We’ve already seen a considerable increase during the pandemic, but it was already increasing before then and it’s not expected to stop. The e-commerce market almost can’t keep up with the volumes that are continuing to grow and rail can really play a big part in that.”

For those that are still sceptical as to whether it can be done, Gillert pointed to the example of Royal Mail, which has been operating parcel services via rail since the mid-1990s. “That’s been proven to work,” he said, “it can be done, it just needs a joined-up approach and lots of discussion as to how we can integrate this into your operation.”

Following a question-and-answer session, Alex Veitch concluded the webinar. “I do hope this burst of really good commercial conversations can continue with all parties involved,” he said, “so we can help grow rail freight together.”

*www.logistics.org.uk/rail

Published On: 17/02/2022 16:00:57

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