www.rfg.org.ukTony Berkeley

1
Delivering a Sustainable Railway - Implications
for Rail Freight Tony Berkeley Chairman, Rail
Freight Group25 July 2007
2
Overall Good News for Freight

• First time Government has confirmed a five year
  funding package (subject to ORR)
• Investments in capacity and capability for
  freight growth - long term strategy allows for
  doubling of freight traffic
• Confirmation of Government support for rail
  freight

3
Strategic Freight Network

• Should provide the capacity and capability for
  freight growth gauge, longer trains, heavier
  trains where required
• Coherent strategy for diversionary routes,
  increased opening (24/7), engineering access
• Improvements in freight reliability
• Better certainty of access will improve customer
  / potential customer confidence

4
Regulatory framework to support SFN required

• Whole industry input needed in SFN development
  including customers
• Freight access on routes outside SFN? Technical
  strategy suggests limitations.
• Ability to change SFN if trade patterns shift
  (e.g. growth of northern ports)
• Paths safeguarded for freight use in return for
  tighter use it or lose it policy

5
Welcome confirmation of funding

• 200m allocated for SFN development
• Will deliver incremental work but (e.g.) F2N
  capacity phase 1 estimated at 133m (Freight RUS)
• TIF schemes need to be confirmed and future
  budget?
• No reference to future freight grants
• Confirmation of NRDF is good news.

6
Implications for Charging Regime

• Does SFN / differentiated network infer changes
  to charging structure?
• Beneficiary pays concept for port links / SFN
  (etc) no comparison on road network
• Uncertainty remains over future elements of
  freight charging CP4 and CP5 (route based,
  tonnage measure, contribution to fixed charge,
  coal spillage, etc)
• Need simplicity, stability and affordability

7
Freight needs in network planning recognised by
Govt

• Freight demand forecasts accepted as realistic
• Freight needs must to be considered in planning
  passenger services / enhancements
• Accept that timetable planning must allocate more
  space than is used on day to day basis - with
  appropriate controls

8
Recognise key role of International links

• Links to ports, including Channel Tunnel are
  recognised as vital.
• Channel Tunnel needs commercial charging regime
  but no mention of Govt role in IGC
• No mention of freight on CTRL or access
  /charging regime
• Funding of port links still to sit with
  developers not Govt

9
UK Role in Europe Strengthened?

• Strong commitment to role in Europe Government
  is at forefront of EU proposals to increase
  competition on rail networks across Europe
• Commitment to liberalised market
• Will UK will press for action against non
  compliant Member States?

10
Alignment to other policy areas must be confirmed

• Ensure Planning White Paper reforms deliver for
  rail freight especially terminals
• Confirm opposition to Longer Heavier Lorries in
  UK and in EU proposals as detrimental to rail
  freight
• Equal treatment of road and rail in carbon
  trading schemes

11
In conclusion

• A clear strategy, with funding is a significant
  step forward.
• The SFN could be a big win for rail freight
  capacity and capability but there is much
  detail to develop.
• Support for freight friendly policies is
  helpful.
• Now need to ensure other Govt policies support
  delivery