The Government has unveiled a major new rail freight growth strategy, placing freight at the heart of Great British Railways (GBR) and setting a target to increase rail freight volumes by at least 40% by 2040.
Announced today, Tuesday 8 September, the target represents the first milestone towards the Government’s longer-term ambition of increasing rail freight by at least 75% by 2050. Ministers say the commitment will provide certainty for investors, strengthen supply chains and support economic growth across Britain.
Rail freight already contributes almost £34 billion annually to the UK economy. Achieving the new 2040 target could add a further £15 billion in economic value, enabling businesses to transport more goods efficiently while reducing pressure on the road network.
The announcement comes as the Railways Bill enters its Committee Stage in the House of Lords, with the legislation set to formally establish Great British Railways and give it new responsibilities for supporting freight growth.
The Government believes the expansion of rail freight will deliver significant benefits for key sectors, particularly construction and manufacturing.
A single freight train can carry enough materials to build around 30 homes, while Network Rail estimates the new targets could increase the transport of construction materials by 45%. The movement of consumer and industrial goods, including cars, wine, white goods and medicines, could also grow by around two-thirds.
Beyond economic benefits, increased freight traffic on the railway is expected to deliver major environmental gains. Government estimates suggest meeting the target could remove large numbers of lorry journeys from the road network and save up to one million tonnes of carbon dioxide annually compared with moving the same goods by road.
Under the Railways Bill, Great British Railways will be given strategic oversight of network access and clear statutory duties to support freight growth.
A dedicated member of the GBR Board will also hold responsibility for freight, ensuring the needs of freight operators and the businesses they serve are reflected in decision-making from the outset.
The reforms are designed to improve collaboration between infrastructure managers and freight operators, helping unlock additional capacity across the network while encouraging long-term private sector investment.
Heidi Alexander, Transport Secretary, said:
"Great British Railways will have a clear mission to help grow our economy by moving more of the goods British businesses rely on."
"Our new target gives the rail freight industry the certainty it needs to invest, helping businesses move more products, deliver the materials needed to build new homes and infrastructure, and support jobs across the country.”
The rail freight sector has long argued that stable policy objectives are crucial to unlocking investment in rolling stock, terminals and infrastructure. The Government’s new target is expected to provide a stronger framework for long-term growth planning.
Jeremy Westlake, Network Rail Chief Executive, said:
"Rail freight is a vital part of our transport network and the UK economy, moving millions of tonnes of goods every day – putting food on our supermarket shelves, delivering the materials that build our homes and critical infrastructure, and much more besides."
"Increasing the role of freight on the railway is not just good for economic growth; it reduces congestion on our roads, cuts carbon emissions, and supports our ambition to build a cleaner, more resilient transport system. We fully support the government’s target, which sets a clear direction of travel and rightly demonstrates just how critical the role of rail freight is, and we will continue to work with partners to make this ambition a reality.”
For Great British Railways, the announcement signals that freight will play a central role alongside passenger services in the future railway structure. With ambitious growth targets now in place, the challenge will be translating policy into additional capacity, industry investment and operational delivery.
Should the targets be met, rail freight will become an increasingly important contributor to Britain's economy, helping businesses move goods more efficiently, supporting housebuilding and infrastructure projects, and assisting the UK's transition to a lower-carbon transport system.
Image credit: iStock
