RFOA HLOS Presentation 270312 - Freight Transport Association
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Transcript RFOA HLOS Presentation 270312 - Freight Transport Association
Rail Freight Operators’ Association
“The collective voice of rail freight operators”
Rail Freight - strategically important to Scotland
Plays a vital role in supporting economic
connectivity and Scottish business with the
rest of the UK and the world.
10 trains a day move between the Central
Belt and the West Midlands moving everyday
goods for retailers in both directions
Providing a gateway to the world for
Scottish exports, notably whisky and other
drinks moving in deep-sea containers to
Felixstowe, Southampton, Tilbury, Liverpool
and the Humber Ports
Moving Scottish mined coal to English
power stations and supplying coal to
Longannet and Cockenzie power stations to
generate electricity
The Freight Market - A Competitive Sector
Rail operators compete directly with each
other, road and ship
Competition helps drives efficient behaviour.
The Rail Value for Money study (McNulty)
concluded that rail freight operators had
achieved:
A 32 per cent improvement in staff
productivity since 1998/99
48% growth with half the locomotives and
two thirds of the wagons employed in the
mid-1990s
In the future, more flexibility & efficiency
is needed to keep up with competing
modes and drive further modal shift:
Longer&/or heavier trains
Operating more days of the week
Simple, national access and
planning regimes
Key rail freight markets in Scotland
Deep sea intermodal (both imports and exports)
Domestic intermodal
Coal (Anglo-Scottish and wholly Scottish flows)
Petroleum products
Chemicals
Cement
Waste
Nuclear
Pipes
Automotive products
Metals
Mail
Timber
Coal currently accounts for 76% of movements
Intermodal has been the fastest growing sector with 37%
growth in container tonnes by rail to/from/within Scotland since
2004
UK Growth
Since 1994/95 UK rail freight has grown
by 48% - to 19.23 billion tonne km
Coal for electricity generation has
declined – although rising gas prices has
increased volumes in the last year
Intermodal has become the largest
sector in the market and has grown by
61% since 2003/4 whilst road movements
have reduced by 14%
Investment in the Strategic Freight
Network in England has enabled growth
and increased modal share by rail:
Gauge clearance from major ports
Enabling longer trains
Growth in Scotland
16,000,000
15,000,000
14,000,000
MDS Transmodal revised
forecast freight tonnage to
Scotland for 2010-2030
(based on agreed industry
forecast but updated to take
into account recessionary
impacts)
13,000,000
12,000,000
11,000,000
10,000,000
9,000,000
8,000,000
7,000,000
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
Scottish Parliament announced January 2012 objective to increase exports by 50% by 2017
Considerable continued growth in Intermodal sector
Coal decline but potential for biomass and extension to coal usage through fitment of
carbon capture storage (CCS) at power stations
2010-2030 forecast growth:
604% growth in Domestic Intermodal
877% growth in Waste (for energy) and Biomass forecast
Strategic Freight Network
“a core network of trunk freight routes, capable of accommodating more and longer freight
trains, with a selective ability to handle wagons with higher axle loads and greater loading
gauge, integrated with and complementing the UK’s existing mixed traffic network.”
In CP4 the Strategic Freight Network has been funded in England and Wales only
CP4 interventions were mainly gauge clearance projects. These have unlocked immediate
growth –
gauge clearance from Southampton increased rail modal share from 30 to 35%
Key projects have been on time and under budget partly due to innovation – e.g.
Southampton tunnel
The principles behind the Strategic Freight Network are designed to support value for
money initiatives:
Maximising train lengths to minimise the paths needed and increase rolling stock
utilisation
Flexible use of capacity
continue current practice of minimising operations during periods of peak
passenger operation around major conurbations
Extended hours of operation to enable more services per week - increasing use of
both capacity and resources
Proposed CP5 Strategic Freight Network Fund for
Scotland
In CP5 Network Rail and RFOA propose a £50 million Strategic Freight Network
fund in Scotland to support:
Economic growth
Modal shift to rail
Environmental benefit/reduce road congestion
One intermodal train removes on average 50 equivalent lorry journeys.
Scotland’s economy and sustainability targets to increase modal shift to rail
Key enablers to achieve this include
Improving freight access and capacity on the core Anglo – Scottish corridors
(ECML/WCML)
Provide improved capacity and connectivity to locations north of the Central Belt
such as Aberdeen and Inverness that could generate further growth.
Scottish Freight Aspirations for CP5
Gauge Clearance
W10 ECML Berwick to Carstairs
Grangemouth
Dundee – Aberdeen – Inverness – Elgin
Glasgow and South Western
Capacity Enhancement Mossend Area:
Accommodation of 775m trains for intermodal traffic using Central Scotland terminals
(allowing more efficient utilisation of network capacity)
Freight Capacity WCML/ECML:
Interventions required to accommodate forecast future Anglo-Scottish freight growth
Freight Capacity Central Belt – Inverness/Aberdeen:
Interventions required to accommodate future growth and improve access to the rail
network for business in the North of Scotland
Infill Electrification:
Grangemouth
Edinburgh Suburban
Shotts Line
Justifying the Investment case for CP5
Investment in the network infrastructure is needed to achieve the forecast
growth and modal shift to support economic growth
CP4 Strategic Freight Network funding in England and Wales has delivered high
Value for Money schemes, (business case for West Midlands – Doncaster has a
BCR of 7.7:1).
Strategic Freight Network bid for £350m of funding for England and Wales with
2 projects already confirmed in the Autumn Statement to align with Scotland
fund
Strategic Freight Network CP4 governance structure is being treated as best
practice and likely to be rolled out to other “funds” in CP5
A specific ring fenced freight fund for Scotland will enable:
Synergies with Strategic Freight Network Fund in England and Wales to
enhance a national network
Assessment of CP5 freight proposals so the highest value for money
schemes can be prioritised
Focus on freight (in a passenger dominated network)
Wider impacts of Periodic Review
The Office of Rail Regulation is also reviewing access charges and
incentive regimes for 2014-2019
Policy alignment is needed to support modal shift to rail
Retaining access charges at existing level is vital to continue to compete
with road
Opportunity to increase intermodal movements by rail further and faster if
access charges reduced
Concern over impact to Scottish open-cast collieries of proposed increase in
coal access charges
Opportunity for different approach by
Transport Scotland
Network Rail must be incentivised
to improve 7 day access
enable a reliable offering
Operators and Network Rail should be
incentivised to work together to reduce
each other’s costs