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Britain relies on rail freight according to new study
Monday, 12 July 2010

In recent years rail freight has undergone a renaissance, with freight volumes increasing by 50% since 1995.
In 2008/9 alone rail moved 100 million tonnes of freight throughout the country. It has a market share of 11% of all surface freight transport.
Between 1999 and 2007/8 the number of containers passing through Felixstowe – the largest container port in the UK – increased by 118% but the number transported by rail increased by 165% demonstrating the   growing market share of rail. Over the same period the number of trains serving the port daily has
almost doubled.
Network Rail has forecast in the 2007 Freight Route Utilisation Strategy that freight demand will grow
by 30% over the next decade – the equivalent of an additional 240 freight trains per day. Looking
further into the future and analysing a range of long term economic scenarios, Network Rail has
forecast that rail freight could increase by as much as 140% by 2030. Even the most conservative
scenario shows rail freight growing strongly. Each freight train takes about 60 lorries off the roads

The British economy is boosted annually from £870m by the rail freight industry – new research from Network Rail reveals today. The freight industry further indirectly supports an economic output of £5.9bn, over six times its direct turnover.

Network Rail’s study, the Value and importance of rail freight, also shows:

Rail transports over 100m tonnes of goods worth around £30bn every year
The freight sector is supporting employment 14 times the number employed directly in the industry (4.7k compared to 66.6k)
In total the UK freight sector contributes £299m in profits and wages to the UK economy
Rail freight generates £185k worth of output per employee almost double the national average (£89k)
The societal benefits from a shift from road to rail equate to £376m (2007/8) and up to £903m if it grows by 140% (2031). This would be a lot higher if the loss of revenue from vehicle excise duty was not taken into account
Rail freight demand is predicted to grow by 30% over the next decade and up to 140% over 30 years

Network Rail’s director, planning and development Paul Plummer, said: “Britain relies on rail freight. More and more companies are switching to rail and reaping the economic and environmental benefits. As Britain climbs out of recession, Network Rail is boosting business by creating new opportunities for freight.

“Today we are seeing the greatest variety of goods transported by rail. Traditionally, rail freight has been dominated by bulk products such as steel and aggregates – unsuitable for road transport – but increasingly consumer goods such as foodstuffs, plasma screen televisions and even Christmas trees arrive by train.”

"Network Rail is committed to work closely with freight operators to improve efficiency and prioritise scarce funding for investment so that we can grow rail’s share of the freight business in an affordable way. Up and down the country Network Rail is working on investment schemes that will bring further benefits to business, to consumers and to the environment. These schemes often bring significant benefits to passengers as well, so this is all about making better use of the network."

Road freight is frequently delayed by congestion. Every year thousands of hours are lost due to congestion on Britain’s roads and over a quarter of all road freight journeys are delayed. Analysis by the Department for Transport found that congestion was the biggest external cost imposed by road freight.

The Eddington Study estimated that the time lost as a result of road congestion costs the British economy £7-8bn every year and is likely to be at least £24bn by 2025
Without the railway, the anticipated growth in freight traffic over the next 30 years would mean an extra 1.5 million lorry journeys on Britain’s roads each year