Delivering the goods

Delivering the goods Mags Simpson

Post-pandemic rail: parcels as passengers?

Mags Simpson, Head of Policy Engagement at Logistics UK explains why now may be the right time for such initiatives to be introduced, and provides an overview of some of the work being carried out already in this space, and details some of the obstacles to overcome before these express freight trains can become commonplace on the network

In February 2022 Logistics UK hosted a webinar: Rail Freight and High-Speed Logistics, which explored the role rail can play in meeting rising demand for express grade freight services in the UK. The virtual event featured expert speakers including Ed Butcher, Head of Business Development at High Speed One (HS1), Dan Fredriksson, Express Freight Development Lead at Network Rail and Sam Gillert, Account Manager at Eversholt Rail.

The speakers all recognised that there is a huge opportunity to transport parcel, post and other express freight via rail on a large scale, delivering goods into city and town centres directly, but there are many challenges to overcome first.

Why now? With commuter services core to Network Rail – in 2019, more than half of all rail journeys in England were for commuting – the business understands that the popularity of hybrid working, and resulting fall in these passengers, could unlock opportunities to grow rail freight movements as capacity is released across the network. Furthermore, with volumes of parcels rising, but access to town and city centres via road becoming increasingly challenging, whether its congestion on key routes, or city-imposed restrictions on HGV movement/access (such as the Ultra Low Emission Zone in London), use of rail city-centre terminals offers a potential solution to some of the challenges faced by urban logistics. There are also the benefits to the environment of transporting these goods via rail over road.

HS1 is exploring the concept of high-speed freight on its network. Teaming up with its sister organisation in France – SNCF – it commissioned a study from independent consultant Transport Intelligence, seeking to outline both the competitive advantage of high-speed freight and the size of the prize. The study found that the most likely target market is express parcels and the e-commerce market. More specifically, it identified bulk capacity between major cities, suggesting that a hub in Paris could use existing high-speed lines as spokes to major cities. According to its research, high speed freight would capture 25 per cent share of the existing line haul market between cities within its network, and foresees the market will be worth €2 billion

(£1.7 billion) a year within ten years (in 2019 values).

How will it work?

Network Rail sees express freight as a spectrum. At one end is simply using existing space on passenger trains, either by having parcels as passengers or by locking out entire coaches for express freight. The next step up the scale is having dedicated converted passenger trains, where the seats and tables have been removed to make way for racking and stacking. One step on from this is the intermodal and container traffic where the freight volumes can scale up significantly.

Eversholt Rail started working in the freight market a couple of years ago and following extensive market analysis, it decided to convert one first-in-class unit – known as a Class 321 Swift Express Freight Train – in July 2021 to perform a dedicated freight service. The rolling stock company converted passenger units by removing all the seats and components. The 321s are electric trains operating up to 100mph, which also retain the flexibility to be hauled by diesel locomotive. With a payload of up to nine tonnes per vehicle, 321s offer a wide network coverage, having operated across miles of track from East Anglia to Scotland. The company is optimistic about the scale of the opportunity for express freight, viewing it as a key enabler of rail freight expansion.

What are the challenges? While there is real determination in the rail sector to grow express freight services, there are many challenges that must be overcome; how it will work effectively on a large-scale is yet to be determined. One key challenge is timetable capacity – even with reduced passenger numbers, securing timetable slots for freight is difficult – as well as operational considerations at passenger stations. For example, loading and unloading vehicles at stations for onward travel, crime and security concerns for parcel protection, and storage space to suit the scale of operations. Other challenges noted during the webinar include public and business perception of rail as a poor performing, unreliable transport mode, leading to concerns that express parcels may be stuck on delayed trains. However, according to Eversholt Rail, rail freight operators achieve 97 per cent reliability and, in general, rail freight can match or better road freight reliability.

With its potential to grant logistics operators with access to city centres, dampen road traffic, and move a high volume of goods at quick speeds – all while reducing environmental impact – high speed freight services present a potentially huge opportunity for the logistics sector, with particular emphasis on the parcel and e-commerce markets. While there are many challenges to overcome before we see these express freight trains become commonplace on the network, Logistics UK looks forward to seeing the industry come together to solve these issues and usher in new opportunities for rail freight.

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.