How Rail is Becoming a Viable Option for UK Businesses’ Freight Needs
As road congestion and a shortage of lorry drivers in the UK become increasingly pressing issues, companies such as Nestlé and DP World are seeing rail as a viable option for transporting their goods. Although the UK’s rail network currently carries just 10% of freight, many businesses see the potential environmental benefits as a compelling reason to use this mode of transport. Rail produces 76% fewer carbon emissions per tonne of freight than road transport, offering a significant reduction in greenhouse gases.
Companies such as Nestlé are closely examining their carbon footprint and the potential to use trains to transport their goods across the UK. Sally Wright, Delivery Manager at Nestlé Business from the UK and Ireland, said that the company planned to carry out a rail delivery trial between the Midlands and Essex this month. This would involve transporting pet care products to start, with food products such as KitKat to follow.
Logistics companies such as DP World are also keen to embrace rail freight. Ernst Schulze, the head of DP World in the UK, said that he hoped to increase the percentage of goods leaving Essex and Southampton ports by rail from 25% to 40% within a couple of years. The group launched a weekly rail service between its UK ports at the end of last year. This week, it announced financial incentives for customers who move goods from Southampton by train.
Despite these positive moves towards more rail freight, there are some challenges to overcome. One issue is that the UK’s rail infrastructure may not be enough to support rail freight transport on a large scale. Business leaders have urged caution, pointing out that the existing network may struggle to cope with the transition away from road freight transport. Recent rail strikes have also hampered progress.
There are also concerns that the rail network may not be suitable for the needs of some businesses. A major supermarket manager, for example, has said that the UK’s rail system is not sufficient to meet their usual requirements. Freight lines are shared with passenger lines, unlike in many European countries where there are separate freight rail lines.
However, rail freight transport is growing in popularity. Maritime Transport, for example, transports up to 5,000 containers a week by rail, up from around 400 four years ago. John Bailey, the company’s chief executive, stated that it is getting more expensive to transport goods on the road, and it is becoming increasingly expensive to pay drivers’ wages. Bailey said there is potential for the company’s rail service between London and Yorkshire, announced in October, to carry more than 18,000 containers a year.
Alex Irving, a logistics analyst at Bernstein, said that rail transport’s “super-low emissions” are encouraging companies to consider this mode of transport. Rail may be slower than road transport, but it is also cheaper. With the talk about driver shortages, rail is viewed as a less problematic option.
Companies such as DP World and Nestlé are looking for ways to reduce their carbon footprint, and rail freight is one way of achieving this. However, there are some problems to overcome. Even so, with the pressing concerns over the impact of road transport, it is likely that rail freight will become an increasingly popular option in the years to come.
Summary:
Major consumer groups such as Nestlé and logistics companies, for example, port operator DP World, are turning to rail to transport goods across the UK due to concerns over road congestion, environmental damage, and the shortage of lorry drivers. The UK’s railway system currently carries just 10% of freight, but companies are turning to it in a bid to solve sustainability issues, the cost of hiring drivers, and to reduce their carbon footprint. Rail transport produces 76% fewer carbon emissions, offering a significant decrease in greenhouse gases. Despite the positives, the introduction of rail freight brings challenges such as the UK’s rail infrastructure struggling to maintain large-scale freight, and some businesses do not believe the network is adequate for their needs. The UK’s existing railway system may struggle to support a transition away from road freight transport, while industrial action by railworkers is hampering progress.
Additional Piece:
The COVID-19 pandemic has brought about significant changes in the way businesses approach their operations. The rise of e-commerce has led to increased demand for next-day delivery services, putting significant pressure on the transport and logistics industry. It has been reported that the average UK driver lost 80 hours in traffic last year, compared to 51 hours in the US and 40 hours in Germany, according to analyst firm Inrix. This trend is likely to continue, generating further congestion and environmental damage. According to the Department of Transport, road transport is responsible for around a quarter of UK carbon emissions.
Although rail transport is slower than road transport, it offers environmental and economic benefits. Rail transport is often a cheaper option and produces fewer carbon emissions than road haulage. As the rail network system expands and becomes more efficient, businesses will likely adopt the model increasingly. Rail freight transport is growing at 7% per annum, which is faster than the 3% growth of road haulage, according to the Rail Freight Group. The shift towards rail will also bring opportunities for innovation, with many businesses investing in automated technologies such as drones and electric rail vehicles.
In conclusion, rail transport offers a viable solution to many of the challenges facing UK businesses in 2022. As the demand for fast delivery options continues to increase, congestion on the roads will undoubtedly worsen. However, with businesses such as Maritime Transport transporting 5,000 containers a week via rail, it is evident that rail transport is gaining momentum. If businesses can balance sustainability, innovation, and efficiency, they can build a brighter future for all.
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Major consumer groups including Nestlé and logistics companies such as port operator DP World are turning to rail to carry goods across the UK amid growing concerns over road congestion, shortages of lorry drivers and the environmental impact of road haulage.
The UK’s rail network currently carries only around 10% of freight, but that share is likely to rise as more businesses are attracted to the potential environmental costs and benefits, according to transport executives.
Sally Wright, Delivery Manager at by Nestle Business from the UK and Ireland said the company planned to carry out a trial rail delivery between the Midlands and Essex this month. The group hopes to transport its pet care products, such as Felix cat food, before also transporting food such as KitKat by rail.
“We’re looking holistically at our carbon footprint,” Wright said. “When you add on top of that the congestion on the roads and the shortage of drivers that we’ve had, we’ve started to look into [increasing] our footprint on rail.”
The relatively large UK market for online shopping and next day delivery has led to worsening congestion on its streets. The average UK driver lost 80 hours in traffic last year, compared to 51 hours in the US and 40 hours in Germany, according to analyst firm Inrix.
An exodus of European lorry drivers from Brexit also means the UK has been particularly hard hit by a shortage of truck drivers. Despite the government investing millions in training Britain’s drivers, industry group Logistics UK estimated in December that the country was still short of 60,000 drivers.
On the environmental front, trains produce 76% fewer carbon emissions per tonne of freight than road transport, according to Network Rail, the owner of Britain’s rail network.
Alex Irving, a logistics analyst at Bernstein, said the railroads’ “super-low emissions” were encouraging consumer-facing groups to consider them an option.
Rail is generally slower but also cheaper than road, he added, noting that “all the talk about driver shortages [was] clearly less problematic for the railways”.
Ernst Schulze, the head of the United Kingdom DP worldhe said he hoped to increase the share of goods leaving Essex and Southampton ports by rail from 25% to 40% within a couple of years.
The group, which launched a weekly rail service between its UK ports late last year, also this week announced financial incentives for customers who move goods from Southampton by train.
“International requirements [for companies to reduce their carbon footprint] they are becoming terribly important. Cargo owners [prefer rail] to trucks. I think the whole industry is starting to recover,” Schulze said.
British carrier Maritime Transport said it transports up to 5,000 containers a week by rail, up from around 400 four years ago.
“Street [transport] it’s getting more expensive. Drivers’ wages will continue to rise,” said John Bailey, the company’s chief executive. In partnership with GB Railfreight, one of the UK’s largest operators, recently started moving drinks for Coca-Cola Europacific Partners, a European bottler independent.
At the current rate, Bailey says, he can see the rail service between London and Yorkshire, announced in October, carrying more than 18,000 containers a year, equal to around 2.5 million cans and bottles of drinks.
Business leaders have warned, however, that the UK’s existing rail infrastructure may struggle to support a meaningful transition away from road freight transport, while recent rail workers’ strikes have also held back progress.
“There’s still concern about the reputation railroads have had in years past,” said Phil Read, chief executive officer of railfreight start-up Varamis. “Industrial action doesn’t do us any favors.”
Since its launch in January, Varamis’ new 100mph service has carried up to 2,000 parcels each night between Glasgow and Birmingham for two small parcel handlers, Read added. But he said his train had the capacity to carry up to 20,000 parcels and the company was in talks with logistics group XPO, Amazon and DHL.
A manager at a major supermarket said the UK’s rail system is not sufficient to meet his needs.
Unlike the UK, where freight lines are shared with passenger lines, “European countries have separate freight [rail] lines,” the manager pointed out. “You have a Victorian infrastructure. Train lines can only take you to a few major hubs.
“We can move things [across Europe] without problems,” agreed Nestlé’s Wright. The UK railway was limited by railway bridges originally designed for smaller trains. “They are beautiful and they are all under guardianship”.
Nestlé has co-developed a container with an adjustable roof that can be lowered to just above the height of its contents. “[UK rail] it’s mostly passenger-centric,” Wright said. But he added, “The network itself exists. There’s an opportunity to say: How can we use some of it?
https://www.ft.com/content/dbfdf118-8942-4645-90de-563d58077dc0
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