Delivering the goods

Delivering the goods Mags Simpson

2022: what is in store for rail freight?

Mags Simpson, Head of Policy Engagement at Logistics UK, provides an overview of some of the key moments in 2021 and looks ahead to what the industry needs to thrive in 2022

2021 was a positive year for the rail freight industry – from Tesco crediting the transport mode for keeping food on its shelves to further government investment into the electrification of the network – it has never been more appreciated for the role that it plays in supporting our supply chains. Throughout the past twelve months, the industry has proven once again that it is resilient and adaptable in the face of crisis, supporting the UK through various supply chain challenges, including the HGV driver shortage, which, in September 2021, saw 96 per cent of UK logistics businesses report problems recruiting these crucial workers.

Great British Railways In spring 2021, the government realised its plans to transform the nation’s railways. Within the Great British Railways: Williams-Shapps plan for rail whitepaper, was the proposal to bring the network under single national leadership with the creation of a new public body: Great British Railways (GBR). This is the biggest change to the UK’s railways in 25 years, and one supported by Logistics UK, which has long since believed that rail freight has been disadvantaged by complex systems of decision making involving multiple rail bodies. It is expected that the new body, GBR – who will have a statutory duty to promote rail freight to secure economic, environmental, and social benefits for the nation – will ensure freight operators have fair access to the network and will ‘help embed freight firmly into strategic decision making, by incorporating freight into the new 30-year strategy.’

Throughout 2022 and beyond, Logistics UK is looking forward to working with the new GBR and the Department for Transport on the implementation of reform process and awaits with interest the Whole

Industry Strategic Plan, set to be published in 2022. Commissioned by Grant Shapps MP, Secretary of State for Transport, it will set out the long-term strategic drivers that ministers will use to hold GBR to account.

Covid-19 pandemic Rail played a key role in ensuring the timely delivery of essential goods and moving personal protective equipment around the country throughout the Covid-19 pandemic. Prior to the pandemic, the rail network was operating at full capacity however, during the pandemic, with the increase in working from home, the number of passengers reduced significantly; during Q4 of 20192020, the total journey numbers dropped by 51 million. This led to an opportunity to increase freight capacity and as the nation manages the spread of Covid-19 in the long-term and rebuilds the economy, it is important that freight remains a key consideration.

The Rail Delivery Group’s Value of Rail Freight report (April 2021) revealed that intermodal freight services on some underutilised off-peak passenger routes deliver greater economic value than passenger use; Logistics UK is urging the government to heed the report findings and allow freight operators access to these lines. All opportunities to maximise rail freight use on the network – when it makes economic and operational sense – should be explored.

Decarbonisation Following the UN Climate Change Conference (COP26) in Glasgow in 2021, reducing greenhouse gasses globally has never been higher on the agenda for government, businesses, and citizens alike. The continued decarbonisation of the rail freight industry will be a key focus in 2022, as will the need to shift more freight from the road onto the tracks. Throughout 2022 we will see the government start further decarbonisation programmes, such as electrification of the Trans-Pennine main line and Midland Main Line, in addition to continued innovation from an array of private companies, including a partnership (announced in November 2021) between train manufacturer Alstom and rail operator Eversholt Rail to build the UK’s first hydrogen train fleet. 2022 has the potential to be another positive year for rail freight, both in terms of policy reform and decarbonisation. Continued investment into infrastructure to release capacity and drive efficiencies, is vital to grow its use and ensure longterm sustainability. Transport connectivity between the nations is crucial too: we are pleased to see the Union Connectivity Review, published in November 2021, includes a recommendation to improve connectivity to seaports across the UK by enhancing rail freight connections and maximising the potential of freeports by investing in improved connectivity to and from these economic hubs.

Throughout 2022, Logistics UK will continue to act as the voice of the industry, working closely with its members, government and stakeholders to maximise the use and value of this crucial transport mode.

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With Covid-19, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, including its ground-breaking research into the impacts of Covid-19 on the whole supply chain, please visit logistics.org.uk.