1. INTRODUCTION
1.1. This paper is the Railway Industry Association (RIA) submission to the Integrated National Transport Strategy.
2. ABOUT RIA
2.1. The Railway Industry Association (RIA) champions a dynamic UK rail supply sector. We help to grow a sustainable, and high-performing railway as well as promoting UK rail expertise and products to international markets. RIA has over 400 companies in membership, active across the whole of the rail supply sector and covering a diverse range of products and services, including both multi-national companies and SMEs (60% by number).
2.2. The rail network is one of the UK’s most valuable assets in terms of its role connecting people, goods, and places but also its contribution to the wider economy as an instrument of growth, job creation and sustainability. A 2024 report produced by Oxford Economicsi shows that the rail industry supports:
• £41 billion GVA in economic growth.
• 640,000 jobs.
• £14 billion in tax revenue each year.
• Labour productivity in the rail supply sector is 29% higher than the national average.
• Rail is the cleanest mode of mass transportation, contributing to just 1.4% of transport emissions and accounting for less than 1% of all UK emissions.ii
3. KEY MESSAGES
3.1. Our key messages are:
• Plan for long-term growth in public transport including rail as part of a multimodal network for passengers and freight.
• Ensure the strategy aligns with a long-term steady investment plan to affordably deliver a joined-up transport network
• Data and technological achievements in rail can be leveraged to drive innovation across UK public transport.
• Leverage private investment to deliver benefits sooner
4. PLAN FOR LONG-TERM GROWTH IN PUBLIC TRANSPORT INCLUDING RAIL AS PART OF A MULTIMODAL NETWORK FOR PASSENGERS AND FREIGHT.
4.1. It is essential to anticipate demand to ensure the transport network has the capability to accommodate future capacity and benefit from the associated revenue growth
• Independent research by Steer, commissioned by RIA, has shown that passenger demand could grow between 37% and 97% by 2050, depending on policies (Figure
1)iii The last year has already seen progress on the upper end of the scenarios –with a faster than expected bounce-back from the pandemic. Such a long-term outlook provides an opportunity for policy makers and the rail industry to reduce subsidy levels and accelerate decarbonisation. This long-term growth scenario in rail can and should be leveraged as a foundation for building a multimodal transport network
Figure 1: Projected passenger demand between now and 2050 (millions of journeys)
• National Governments and devolved authorities need to be aligned and coordinated in their transport planning and assessment of future demand across public transport. Their evaluation of future capacity requirements should strive to realise a ‘joined-up’ approach. In particular, commitments should be made to explore the feasibility of new rail capacity where studies show it is needed, including the corridor between the Midlands and the North.
4.2. The Integrated National Transport Strategy (INTS) must also consider freight trends to manage road congestion and maintenance costs and decarbonise transport as quickly as possible
• The Government’s target of increasing rail freight by 75% in 2050iv means that over 450 extra freight trains will be needed on the network each day. To reach this target, freight needs to be considered as part of the INTS, or risks being sidelined for both investment and day-to-day operation
• The UK still lags behind EU countries in terms of the proportion of freight moved by rail: only 9% of freight is moved by rail in the UK compared to the EU average of 17%v. The Strategy needs to address this discrepancy and ensure the UK adheres to the freight growth target.
• A single freight train removes up to 129 heavy goods vehicles from the roadsvi, significantly reducing carbon emissions. To ensure that rail freight’s positive impact towards decarbonisation is not weakened unnecessarily, it should be considered as part of the INTS. Additionally, increased rail usage reduces congestion and the increased carbon emissions caused by it.
4.3. The Strategy needs to recognise the role of rail in supporting regional growth and act as an enabler of the UK Government's Industrial Strategy.
• Rail has long played an important role in supporting growth in city regions, by providing the mass transit of large numbers of people into urban areas. The National Infrastructure Commission found that the productivity of city regions is dependent on the quality of their transport connectionsvii. Rail connections also facilitate significant new housing development and act as a driver for the wider decarbonisation and decongestion of the UK transport system. An integrated ticketing offer encompassing rail, buses and active travel is therefore vital to realising the full potential of city-regional economies.
• As highlighted in RIA’s submission to the Industrial Strategyviii in November, good transport infrastructure is a foundational enabler of business development, as it connects priority industries with skilled workers and products with markets. RIA suggested that the Strategy is underpinned by geographical mapping that identifies key transport links between hubs/’clusters’ where the eight priority sectors are located, to successfully deliver the Strategy’s aims. It should then be used to test the resilience of those connections in terms of both future capacity and asset condition/reliability.
• Transport decision-making needs to be integrated between different tiers of government (including Combined Authorities), as well as within and between government departments due to its intersectional nature.
4.4. RIA has previously called on the Government to provide a stable, national vision for the future of rail retail that operates across a wider, multimodal network.
• Last year our ‘Destination: Revenue Growth’ix report set out a series of recommendations for enhancing the customer experience and boosting ridership, to drive revenue growth without increasing ticket prices. We called for a stable national vision for rail retail in order to implement long-term policy and strategy alongside the leadership necessary to achieve it. The report underscored the need for standardised and specified Interfaces between different ticketing ecosystems across transport modes and constituencies, with an emphasis on streamlining in a way which allows interoperability and enables innovation.
• ‘Destination: Revenue Growth’ also pointed to the benefits of a level playing field for all with access to all core data, fares, and features, to achieve the vision of an environment supportive of rail retailers and one which encourages competition and accelerated innovation for the customer’s benefit. The report’s final call was for the establishment of non-mandatory multimodal common contractual frameworks to provide a clear structure within which Mobility as a Service Provider could operate and foster ‘an environment conducive to new entrants, inter-modality, innovation and collaboration.’
5. ENSURE THE STRATEGY ALIGNS WITH A LONG-TERM STEADY INVESTMENT PLAN TO AFFORDABLY DELIVER A JOINED-UP TRANSPORT NETWORK
5.1. Government and policymakers need to plan now to accommodate future demand on public transport, including rail services. An ancillary long-term investment strategy for public transport, including rail, is therefore critical for delivering a more aligned, better coordinated and value-for-money transport system in the future. A
tangible and visible pathway for the long term can also help lock in public investment and provide certainty for private investors. More widely, it can help alleviate wider bottlenecks on transport corridors across the country and reduce congestion, as well as support economic growth in key cities.
5.2. There is huge potential for a long-term transport strategy to underpin better outcomes through the supply chain if it can support a long-term pipeline. See Figure 2. The clarity provided by a long-term plan will encourage investment and innovation and give businesses the confidence to invest in skills, equipment and research, whilst reducing costs in the long run.
Figure 2. Six steps to improve productivity in rail – starting with a long-term strategy.
5.3. There is a significant risk if the strategy fails to translate into tangible projects. Analysis by the National Skills Academy for Rail (NSAR) has found that the total number of workers in UK rail has dropped by 9.4% since 2023x, with decreases in corporate services and the supply chain for capital projects. Furthermore, nearly 90,000 people in the rail industry are projected to leave their current employer by the end of this decade with a large proportion of these retiring. This substantial gap in the workforce is both a potential threat and a great opportunity to create significant economic and social value with the right strategy across the nations and regions of the UK.
5.4. Ensuring the transport strategy translates swiftly into a long-term transport investment plan will help coordinate upgrades for both infrastructure and rolling stock. RIA has advocated for many years to highlight the inefficiency of ongoing uncertainty around both the pipeline for rail enhancements and the rolling stock strategy. Last year we published a report which set out a delivery plan for electrifying 100% of passenger services and 95% of freight services being decarbonised incrementally in the decades to 2050xi
6. DATA AND TECHNOLOGICAL ACHIEVEMENTS IN RAIL CAN BE LEVERAGED TO DRIVE INNOVATION ACROSS UK PUBLIC TRANSPORT
6.1. The railway has been absorbing the benefits and innovations from digital technologies across its interfaces and frameworks for many years Network
enhancements such as digital signalling and artificial intelligence have led to the optimisation of operations and maintenance, while new approaches to ticketing and retail systems have contributed to creating the railway of the future.
• For example, the East Coast Digital Programme (ECDP)xii is a landmark scheme managed by Network Rail which will introduce in-cab digital signalling on the southern part of the East Coast Main Line, between London Kings Cross and Grantham.
• Continued investment in digital infrastructure and skills is needed in order to enable these and other innovations, which rely on good quality and available data, as well as a workforce with the skills to fully leverage it.
6.2. RIA’s Digital Decade campaign,xiii published in 2023, has six key asks regarding how the development of digital and deep technologies affect the railway. These are:
1. The railway’s digital transition requires leadership, strategy and action, starting now. Suppliers, clients and stakeholders cannot afford to wait until years after the formation of Great British Railways (GBR) to have crossindustry leadership and a defined strategy.
2. The UK workforce needs to be empowered through upskilling and creating the right culture in order to reap the full rewards of the new digital world
3. All organisations should place customers at the heart of their work and remain receptive to change. The world is constantly evolving, and companies need to adapt to meet the changing expectations and requirements of the modern customer
4. Invest in innovation and implementation The rapid evolution of digital capabilities means that the industry needs to open up to new ideas and innovations in order to sustain future capabilities.
5. Operations and maintenance must embrace the digital future Digital techniques and approaches need to be at the core of business activities to achieve long-term benefits
6. Collaboration and openness are vital, starting with clients The ECDP is a demonstration of what can be achieved via close collaboration with the supply chain, and this example of an agile, open client should be used as a case of best practices for other digital rollouts.
6.3. We have been working closely with the Rail Data Marketplace which is a recent initiative for sharing data between consumers – including app developers, tech firms, academia – and the rail industry. New data-sharing opportunities are driving innovation, leading to the development of innovative passenger-facing applications, new ways of working for rail suppliers, operational efficiencies and improved transparency.
6.4. The Government’s plans for rail reform have specifically highlighted the need for better access to quality rail data as an important commitment.
7. LEVERAGE PRIVATE INVESTMENT TO DELIVER BENEFITS SOONER
7.1. RIA is calling for a fresh approach to attract complementary private funding and also make use of private finance where possible, to bring forward investments that reduce future costs, boost productivity and grow the economy earlier.
7.2. Private investment models have already been used successfully in the rail industry, both in the UK and other countries. There are numerous success stories where private investment contribution has allowed schemes to progress, such as Crossrail (Elizabeth line), the Battersea Northern Line Extension, and the new Northumberland Line, whilst private investment has been effectively utilised in the rolling stock sector, transferring risk for construction and future use. However, there is no clear Government strategy or policy to make the most of the opportunities to leverage private investment that could be used to bring forward investments into a wider integrated transport network.
7.3. A clear policy is needed demonstrating the Government’s views on private investment in rail, along with a playbook showing how and where the government would like it to be leveraged A playbook should be developed in consultation with the operators of different transport modes and those looking to invest, to ensure that investment opportunities remain attractive whilst maximising the potential of an integrated transport network.
7.4. Earlier investment will lead to earlier benefits, as well as a reduction in cost, whilst smoother investment will mean that rail suppliers will have greater confidence to invest for the long term. This will support a more sustainable and efficient workforce, which can in turn reduce costs for projects. In addition, involving private investment in projects will mean there are greater incentives to grow revenues, whilst simultaneously minimising net subsidy and getting better value for the taxpayer xiv
7.5. A pipeline needs to make clear which opportunities are open to private investment. Early collaboration with industry will lead to lower costs and greater certainty, with opportunities discerned where investors can make a return and deliver projects which would not otherwise be possible, either directly or by releasing money to support more social projects. A clear, long-term pipeline of high-priority projects with demonstrable benefits can attract private investors, whilst uncertainty and volatility increase risk and deter investment.
7.6. The Government’s role needs to shift from being a gatekeeper of private investment to being a facilitator. Instead of looking for reasons against private investment, the Government should actively look to involve third parties, develop models for private investment, and provide clear advice to help businesses and investors prepare. This will require an integrated approach across Government departments, with streamlined processes to avoid costly delays.
For more information, please contact RIA Policy Director, Robert Cook at robert.cook@riagb.org.uk or 020 7201 0777 or 07951 776 874.
Endnotes
i Oxford Economics, 2024. The Economic Impact of UK Rail in 2023 Infographic.
https://riagb.org.uk/RIA/Newsroom/Publications%20Folder/The_Economic_Impact_of_UK_Rail_i n_2023_Infographic
ii Railway Industry Association, 2024. Key Asks: Decarbonisation.
https://riagb.org.uk/RIA/Who_we_are/16-Key-Asks/Decarbonisation.aspx
iii Steer, 2024. Research on Long-Term Passenger Demand Growth.
https://riagb.org.uk/RIA/Newsroom/Publications%20Folder/Government_should_seize_opportu nity_to_grow_passenger_rail
iv Department for Transport, 2023. Rail freight growth target.
https://www.gov.uk/government/publications/rail -freight-growth-target/rail-freight-growthtarget
v Transition Clean Air Network, 2023. UK Rail Freight and Emissions. http://epapers.bham.ac.uk/4243/2/05UK_Rail_Freight_and_Emissions_(v1.0).pdf
vi Network Rail, 2024. Freight in numbers.
https://www.networkrail.co.uk/stories/freight-innumbers/#:~:text=One%20jumbo%20freight%20train%20can,in%20Tomatin%2C%20Inverness%2C %20Scotland
vii National Infrastructure Commission (NIC), 2022. Getting Cities Moving https://nic.org.uk/studies-reports/getting-cities-moving/
viii Railway Industry Association, 2024. Submission to the Industrial Strategy Consultation. https://www.riagb.org.uk/RIA/Newsroom/Publications%20Folder/Submission_to_the_Industrial_ Strategy_Consultation
ix Railway Industry Association, 2024. Destination: Revenue Growth.
https://riagb.org.uk/RIA/Newsroom/Publications%20Folder/Destination_Revenue_Growth.aspx x NSAR, 2024. Rail Workforce Survey 2024. https://www.nsar.co.uk/projects/rail-workforce-survey/
xi Railway Industry Association, 2024. A lower cost, higher performing net-zero railway. https://www.riagb.org.uk/RIA/RIA/Newsroom/Publications%20Folder/A_lower_cost__higher_pe rforming_net-zero_railway.aspx
xii Network Rail. The East Coast Digital Programme. https://www.networkrail.co.uk/running-the-railway/our-routes/east-coast/east-coast-digitalprogramme/
xiii Railway Industry Association, 2023. Data and Digital Technologies in Rail. https://riagb.org.uk/RIA/Newsroom/Publications%20Folder/Data_and_Digitial_Technologies_in_ Rail.aspx
xiv Railway Industry Association, 2023. How can the UK railways secure more private investment? https://www.riagb.org.uk/RIA/RIA/Newsroom/Publications%20Folder/Private_Investment.aspx