Track access charges waived for new rail freight traffic

In a move designed to encourage further modal shift to rail freight, Network Rail and the Department for Transport have waived track access charges for new freight flows the next six months in a bid to bring new business onto the nation’s tracks.

The government has ambitious plans to grow rail freight across the country and this scheme it is hoped will encourage further growth with Network Rail’s offer open to all train operators and service types that meet the qualifying criteria.

The relevant charges would be waived in full for six months whilst new traffic is being established.

Before gaining power in July, Labour had pledged support for the rail freight sector alongside ensuring a legal duty to support the sector was included in the establishment of Great British Railways.

The move is supported by the Department for Transport, with Rail Minister, Lord Hendy commenting: “The rail freight sector plays a crucial role in keeping the country moving, providing a faster, greener and more efficient way of transporting goods.

“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."

Network Rail believe the offer is worth up to £1,000 per train circulation however this will be dependent on the length and loading of the trains.

Train operators have been offered the opportunity to gain discounts on their track access charges by Network Rail in a bid to encourage new business to the railway, particularly freight.

The move has been welcomed by the Rail Freight Group. The group’s Director General, Maggie Simpson said: “Maggie Simpson OBE, Director General, Rail Freight Group, said: "Many businesses are looking to move more freight by rail, but it can be a big step to start new services. This new scheme provides welcome support for the first six months of operation, helping customers and operators to open up new routes."

Network Rail’s planning and regulation director, Paul McMahon acknowledged that the haulage sector was price-sensitive but argued that this announcement would certainly help companies with any transition.

“But 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.”

He added: “Rail freight is so important not just because it’s environmentally friendly but because it underpins so much of our economy in a sustainable way.”