London, 4 December, 2008 – The UK’s Transport Secretary, Geoff Hoon, recently (25/11) confirmed that the UK Government plans to inject an extra £1 billion into major transport projects next year. According to the Department for Transport (DfT) statement, the investment is being made, “In order to stimulate the economy by accelerating Government plans to cut congestion and significantly increase rail capacity.”
This extra £1 billion, to be spent on road and rail schemes, is in addition to the overall £10 billion for 2009-2014 already pledged by the Minister in July 2007 to increase rail capacity. Other major long term rail projects include the massive London Crossrail scheme, the £5.5 bn Thameslink programme and an additional £600 m to tackle congestion.
Major transport schemes highlighted in this most recent DfT statement, include the enhancement of rail freight routes through London. This includes £54 million just for the North London route improvement. Other monies already allocated in Oct. 2007 to rail freight projects included TIF (Transport Innovation Fund) monies (£132.5m) for Peterborough to Nuneaton (£80m) and Southampton to West Midlands (£43m) rail gauge enhancement to cope with modern taller containers on standard height rail wagons.
While this is more welcome news for southern transport projects, which will continue to receive the lion’s share of new rail funds, there is a rapidly growing consensus in the rest of the country that further expenditure in southern UK infrastructure is a failed model. It makes no provisions for tackling the identified problems of the UK’s north - south economic performance divide.
“The UK Government needs to invest in the future and not the past,” stated Martyn Pellew, Group Development Director for PD Ports. “This latest injection of cash for road and rail projects into the already congested south will do very little to improve anything, it’s just a perpetuation of pre-existing problems. Over 3-years ago the Government’s Northern Way initiative identified a £32bn shortfall in the economic performance of the North of England. If the UK Government really wants to help our economy in this financial crisis and also meet the long term environmental targets that have been laid out in the recent Climate Change, Energy and Planning Bills, then the UK Government clearly needs a new direction for a sustainable future” added Pellew. “Despite the obvious benefits of moving freight by rail, so far there is still considerable misdirection in the way the UK Government treats and funds its rail network.”
As the recent DfT news indicates, a significant amount of funding has gone into rail access to the country’s southern ports for increased freight shipment particularly to cope with the newer 1 foot higher containers bringing more and more product to UK consumers from the Far East, but as Pellew argues, “This latest investment will only continue the trend for shipping lines to add increasing cargo volumes on to the overcrowded southern UK infrastructure. It’s an investment that will work against itself.”
Pellew adds, “The fact that Britain is an island with a history of maritime trade and excellent ports around our entire coast, plus the fact that the North has less road and rail congestion, is an incredible asset with some of the best potential for increasing inward investment to the UK and for reviving our economic development. The right mixture of good access to the sea, available brown field land and an eager work force exists in the North East. It’s clear to see that there is significant economic potential for the UK here. What’s missing is a supportive rail infrastructure – especially in the form of rail access for trains and wagons capable of carrying the modern high cube imported containers.”
Northern UK ports employers, the rail community and major retailers have been collectively calling on the UK Government to invest strategically on the rail infrastructure of the North and North East. “The UK needs to invest in its Victorian-era rail network and shed its prejudices toward everything good being in and around the south east. We need new ways of thinking if we are to realise that there is a vital latent economic power that exists in the North East,” suggested Pellew, and major retailers seem to agree.
ASDA Wal-Mart is already operating a 360,000 sq ft import centre at the northern UK port of Teesport to handle its imported containers prior to onward transport to the company’s distribution centres in the North. Furthermore, Tesco has commenced construction of a 1.2 million sq ft import centre at the port in a move that will create over 800 jobs. Again this import centre, when opened in 2009, will serve the UK’s largest retailers northern stores and regional distribution centres.
Yet, despite the interest of UK and overseas business enterprises to invest in the North East, the Government, as recently evidenced, still doesn’t seem to be catching on to the more economically viable and environmentally responsible transport solutions available up North. Those in the North suggest that this could be because the UK Government and Whitehall still have not shed archaic notions about how best to re energise the economy and how best to move goods within the UK.
“As an island, we need to use our already available best infrastructure asset first – the sea, “explains Pellew. Like Pellew, proponents of the supply chain concept known as Portcentric Logistics, strongly argue that by bringing cargo farther north via the sea, closer to its end destination and then transferring to shorter distance rail movements, retailers can see a significant reduction in their shipment delays because their products will not be caught up in UK southern port and road congestion. This means that there will be an increase in the accessibility of inventory. They will also benefit from lower overall transport costs and cheaper land costs and lower labour rates in the North. All of which will help retailers significantly cut their supply chain costs. “When a product is moved from its overseas original source, in say China, to the UK retail shelf with greater efficiency, then everyone benefits, including the environment.”
Once again, there’s data to back up the claims made by these northern UK infrastructure supporters. Tesco has been reported as having this year doubled some of its national haulage by rail, while ASDA said it had already reduced road miles by 25% since January 2005 and aims to cut another 15% by the end of 2009. “The results seen with Tesco and ASDA/Wal-Mart, “added Pellew, “ indicate that the UK Government needs to open its eyes as to the benefits that result from a greater use of northern ports and the need for better rail infrastructure to accelerate this trend.”
Yet, while the recent DfT announcement included £30 million for certain road improvements to Immingham Port on the Humber, the East Coast ports of the Humber, Tees, Tyne and Grangemouth still have not seen money committed for urgently needed rail gauge enhancements to link these ports to the East Coast Main Line (ECML). The ECML is the crucial rail link that runs along the East Coast of the UK from London to Scotland, and has yet to receive any serious investment for freight. According to estimates, a relatively small £100 million investment in rail freight capability on the ECML would allow the UK to effectively handle an ever increasing demand for imported containerised goods through east coast ports on the Tyne, Tees and Humber. Those in the North East, argue that as a matter of strategic transport investment, their request for a £100 million investment in the ECML is a relative “drop” in the UK’s transport budget bucket.
“The country needs to develop more sustainable transport methods and there is a need to change traditional thinking. The UK Government cannot continue to neglect of the North East and the ECML any longer, as this area clearly represents the most logical place for change to begin. A meagre £100 million investment into this vital rail line will have a major and direct impact for all UK business in terms of reducing cost, carbon emissions and congestion. Investment in the ECML now represents an opportunity for the UK Government to act with responsible and decisive vision” stressed Pellew.
About the Rail Britannia Campaign:
PD Ports has been involved with in public awareness initiatives, such as the much talked about “Rail Britannia” campaign, running in conjunction with port operators, freight groups and rail interest groups to lobby the UK Government to make strategic upgrades to the East Coast Mainline (ECML).
Supporters of “Rail Britannia” have been keen to point out that the future of the UK economy is at stake, and that northern UK rail investment represents a chance for the UK government to make a massive impact – not only economically through trade and jobs, but also to the environment through a more efficient use of all transport modes.
PDP wants to see enhanced rail access from Teesport to the main East Coast Main Line (ECML).
There is a strong call for the UK Government to fund the cost of the strategic rail gauge enhancement for the ECML rail services in order to reach regional markets in Northern England and Scotland. Rail routes that have been targeted for enhancement are: a) ECML (York & Midlands to Scotland) and b) Transpennine (East/West rail routes to the North West).
Network Rail has a 5-year program from Jan. 2009 worth £28.5 billion set by the ORR to operate, maintain and improve the UK railways to handle 20% more passengers and 30% more freight trains.
The North East Regional Transport Fund has ca. £400m for implementation 2008-14.
What is rail gauge?
The dimensions of a rail vehicle and its load are measured by a series of heights and width profiles that are known as “loading gauge”. The gauge on any particular rail route is assessed to ensure that a railway vehicle will not collide with structures such as platforms, overbridges or tunnels. Carrying containers by rail requires taller trains than for passenger services. For example the loading gauge on the Tees Valley rail link to ECML is only W8 gauge whilst the northern sections of the ECML are W9. Both W8 and W9 gauge can allow traditional 8’6” containers to travel on standard height rail wagons.
A modern 9’6” inter-modal container carried on a standard height rail wagon requires a loading gauge known as W10. An increasing proportion of maritime containers are this taller height having previously been only 8’6” or 9’ in height. Hence the need for rail gauge enhancement on much of UK’s old Victorian era railways.
Swap bodies, which are containers that can be carried by both lorry and train, require a loading gauge wider and taller than for intermodal containers. This is known as W12 gauge and therefore W12 is the preferred standard for rail routes being enhanced to accommodate future container rail freight traffic.
The Teesport to ECML gauge enhancement project should be recognised as a future priority and should raise the gauge from W8 to a minimum W10 but ideally W12 gauge
48% of the total UK freight transport (measured in tonne kilometres) devoted to inland distribution of unitised imports from the southern UK ports’ is bound for the Northern Way regions (North West, Yorkshire & Humber and North East) and Scotland.
Containers and trailers traffic passing through southern UK ports on their way to and from the Northern Way regions and Scotland is adding to congestion on the road and rail networks in the South of England.
UK Government grant funding for specific rail schemes at ports on environmental grounds (to reduce HGV mileages) is relatively small-scale.
The Freight Transport Association (FTA) recently reported, “Congestion on the roads currently costs British business £17 billion per annum – as road congestion from cars and vans increases the competitive advantage of rail will grow.”
In addition the FTA states:
“Rail freight is a key part of the UK supply chain, helping improve UK economic efficiency for manufacturers and retailers.”
“Use of freight trains reduces the environmental impact of the supply chain in the UK.”
“Each extra container train can remove 50 lorries from Britain’s congested roads.”
“Rail can help enable Britain’s increasing demand for imported containerised goods to be met efficiently.”
“Rail freight use is growing in sectors such as retail and consumer goods.”
“Rail allows British industry to participate in global supply chains.”
For DfT web site visit www.dft.gov.uk for DfT white paper “Delivering a Sustainable Railway” July 2007 and press releases 25.11.08 and 29.10.07 related to gauge enhancement.
For information on the north south economic divide visit www.thenorthernway.co.uk
