Rail freight

07.06.18

Choosing rail freight over road delivered £1.7bn economy boost in 2016

Freight rail brought £1.7bn in economic profits to Britain in 2016, with regions in the north west, Yorkshire & Humber, Scotland, and the West Midlands benefitting the most.

Figures released today by the Rail Delivery Group (RDG) found nearly £1.2bn of productivity gains for British businesses that chose to use rail freight instead of road, as well as an extra £0.5bn of “externality benefits” to the country such as reducing congestion on roads, improving air quality, and reducing carbon emissions.

Regions in the north benefitted the most from it: the north west reaped the highest reward of cash into its economy with £331m in benefits, almost one-fifth of the total benefits across the UK. Yorkshire & Humber was the second highest, receiving a total of £324m from freight transport.

Externality benefits such as environmentally positive impacts from freight were also highlighted in the report. Each freight train removes up to 76 heavy goods vehicles (HGVs) from Britain’s roads. Carbon emissions are reduced by 76% compared to road haulage when freight transport is used.

The vast majority of revenue was created away from London, with 87% of benefits secured outside the south east. But freight delivering 40% of construction materials to London meant it still had a large influence in the City.

Investment played a large part in the freight industry’s growth over the last 20 years; operators and the government invested a collective £3.5bn into freight rail since 1997. Investment from terminals and ports such as London Gateway and Liverpool have allowed the areas to thrive.

Paul Plummer, chief executive of the RDG, said: “Working together, the partnership railway stands ready to do more to increase the benefits that rail freight is delivering for Britain.

“As we prepare to develop new trading relationships outside the European Union, we can build on the £30bn worth of goods carried by rail freight, connecting more British businesses with new markets via our sea ports around the country.”

Enjoying RTM? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

related

rail technology magazine tv

more videos >

latest rail news

Network Rail’s subsidiary secures systems integrator contract in Australia

14/12/2018Network Rail’s subsidiary secures systems integrator contract in Australia

The Australian subsidiary of Network Rail Consulting has been named as the systems integrator for the Digital Systems Program in Sydney by Transp... more >
Infrastructure giant Amey to be sold to private equity firm in new year

14/12/2018Infrastructure giant Amey to be sold to private equity firm in new year

 Infrastructure giant Amey is expected to be sold to a private equity firm in the new year, according to reports. The Financial Times b... more >
HS2 and Crossrail suppliers admit to running ‘illegal cartel’ for 7 years

14/12/2018HS2 and Crossrail suppliers admit to running ‘illegal cartel’ for 7 years

Two UK rail suppliers to major projects such as HS1, HS2, and Crossrail have admitted to operating an illegal cartel for almost seven years with ... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

Spotlight on Coventry Very Light Rail

27/11/2018Spotlight on Coventry Very Light Rail

Olivia Brown, business development officer at Warwick Manufacturing Group (WMG), an academic department of the University of Warwick, outlines the four exciting projects currently taking place as part of the Coventry Very Light Rail (VLR)  programme. In RTM’s June/July issue, readers were introduced to the concept of VLR and th... more >
read more blog posts from 'the sleeper' >

comment

Passenger safety: Respect the edge

27/11/2018Passenger safety: Respect the edge

Claire Coward, communications lead at the RSSB, discusses her organisation’s latest passenger safety campaign. Incidents at the platfo... more >
Night Tube: The twilight economy

27/11/2018Night Tube: The twilight economy

Dr David Lutton, executive director of economy and tax at London First, argues that the capital’s night-time economy is just starting its j... more >
Monitoring the performance of earthworks

27/11/2018Monitoring the performance of earthworks

Dr Joel Smethurst, associate professor in geotechnical engineering, and Professor William Powrie, professor of geotechnical engineering, both of ... more >
Introducing iPort

20/11/2018Introducing iPort

Steve Freeman, managing director of iPort Rail, introduces the UK’s newest inland freight terminal. The UK’s newest inland rail ... more >

rail industry focus

View all News

interviews

HS2 train race: making the case

20/11/2018HS2 train race: making the case

Bombardier and Hitachi’s commitment to providing the best HS2 rolling stock pitch to the government was signified with the launch of their ... more >