The UK’s Network Rail has cut track access charges for the country’s rail network in a bid to encourage more businesses to launch rail freight operations and thereby reduce the cargo industry’s carbon emissions.
The state-owned rail infrastructure manager said it would waive the relevant charges in full for six months while a company established new traffic as part of its work with the UK’s Department for Transport to encourage modal shift to rail.
Paul McMahon, Network Rail’s director for planning and regulation, said: “It’s not just words and cutting that carbon that will bring more freight to the tracks and off the roads – haulage is very price-sensitive and by bringing this discount in, we are doing our bit to help our freight customers.”
The offer is open to all qualifying rail operators and freight services and will be worth around £1,000 per train circulation, depending on the length of the train.
Network Rail will be hoping that the decision to waive fees for new operators will support the UK government’s new freight growth target which calls for a 75% increase in the country’s rail freight industry by 2050 as part of the country’s ambition to reach net zero in the same year.
Rail Minister Lord Hendy said: “The rail freight sector plays a crucial role in keeping the country moving, providing a faster, greener and more efficient way of transporting goods.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“The government’s policy is to promote and grow the use of freight services across the country and make moving goods by rail the obvious choice for businesses, and this initiative will do just that.”
A reduction in track access charges was one of the policies pushed by rail operator Freightliner in its call for the government to do more to support the industry to reach the growth target earlier this year.
The company praised the launch of Network Rail’s access charges reduction scheme and said it had already seen benefits for new customers considering a move from road to rail.
However, Katrina Hales, Freightliner’s group marketing director, told Railway Technology: ” it is important to recognise that while this support is a great start, it only provides a temporary 6 month benefit, following which the fundamental challenges in rail freight still remain.
“We urgently require a policy framework with long-term initiatives which will support growth and drive modal shift. “