Railways Bill leaves 30% of passenger trains and freight in “limbo” – experts call for clear pledges

The Chartered Institute of Logistics and Transport (UK) (CILT(UK)) has welcomed the Government’s Railways Bill but warns that around 30% of Britain’s rail services, private sector passenger, devolved passenger and freight operations, risk being left without clear protections or long-term certainty unless the legislation is strengthened.

In its submission to the House of Commons Public Bill Committee, CILT(UK) supports the creation of Great British Railways (GBR) and the reunification of track and train. However, it says the Bill lacks clear, durable plans for how non-GBR operators, devolved authorities and freight operators will be supported and protected within the future railway system.

Anna-jane Hunter, Chair of CILT(UK), told That's Business: “Around 30% of all train movements on Britain’s railway will be operated outside of GBR’s own services, largely by regional and devolved authorities and the freight operating companies. 

"The Bill does not clearly set out how these services will be treated by GBR or how their access to capacity will be protected. Without clear words and procedures, there is a real risk that decisions are shaped primarily around GBR’s own priorities, leaving a significant part of the railway in limbo.”

Services operating outside GBR include Merseyrail, Tyne and Wear Metro, London Overground and all  of the rail freight operations critical to the UK economy and supply chains.

CILT(UK) warns the Bill does not clearly explain how regional or freight services will be supported by GBR, how their access to capacity will be protected, or how long-term investment and development will be secured. 

It is calling for a transparent plan, established under the Railways Bill, setting out how private sector passenger, regional, devolved and freight operators will be engaged, supported and protected.

The Institute welcomes the progress with Scotland and Wales, including proposals on joint working and GBR subsidiaries, but says devolved governments need greater clarity on local control, dispute resolution with GBR, and how their transport strategies will influence rail decision-making.

Anna-jane added: “This Bill presents a once-in-a-generation opportunity to create a railway that supports economic growth, supply-chain resilience and decarbonisation. Getting freight right is central to that, but ambition alone will not unlock private investment.  A freight growth target that GBR is required to have regard to rather than comply with is more of an aspiration than a binding obligation that other services need to support.

“Freight operators need clear, credible and durable plans. Without stronger protections in primary legislation, freight capacity risks being squeezed out by GBR’s own passenger decisions, undermining the growth the Bill seeks to encourage.”

CILT(UK) supports the Bill’s introduction of a statutory freight growth target set by the Secretary of State for Transport and GBR’s duty to support freight, but warns that investment in terminals, rolling stock and services will only come with confidence that freight capacity will be protected.

The Institute says the Bill should be strengthened to embed freight in long-term planning, protect capacity through measures such as strategic freight corridors, ensure fair charging and regulation, safeguard privately funded freight facilities, and support international rail freight, including Channel Tunnel services.  Similar provisions should apply to devolved passenger services which provide key passenger flows in their areas.

CILT(UK) stresses that rail legislation must endure beyond a single Parliament and too much reliance on targets and guidance set by the Secretary of State for Transport creates a level of risk as they are limited to the term of the current Government, or possibly that of the relevant Secretary of State.  The Institute will continue working with Parliament and industry in an impartial way to help deliver a railway that supports economic growth, regional connectivity and a thriving freight sector across the UK.

www.ciltuk.org.uk 

Emirates SkyCargo celebrates new freight service

Emirates SkyCargo, the freight division of Emirates Airline, yesterday celebrated the inaugural service on its new Far East and Australasia freighter route.

The weekly air cargo service, operated by its new Boeing 777 freighter, will fly Dubai-Singapore-Sydney-Hong Kong-Dubai, providing the key trading points with additional connectivity to Emirates' Dubai hub, which can link businesses to the 114 destinations on the carrier’s network.

The Boeing 777F - which touched down for the first time in Sydney on 12th September - has the capability to carry up to 103 tonnes of freight.

"This new route not only bolsters capacity, it provides our customers with more options and increased trade opportunities," said Hiran Perera, Emirates' SVP Cargo Planning & Freighters.

"We currently transport cargo in the belly-hold of 126 passenger flights a week between Dubai and Australia, as well 28 Hong Kong flights and 42 Singapore flights, and the freighter - with a wide main deck door - will increase our ability to carry oversized shipments," added Perera.

"This takes our import capacity to Australia to 1370 tonnes per week and, in these uncertain economic conditions, is further testament of our commitment to facilitating international trade for businesses in the region."

The inaugural fligh - which carried 100 tonnes of cargo, including medical equipment, diagnostics, spare parts, textiles and clothing - was met by Greg Johnson, Emirates' Cargo Manager Australia, and Alex Barkway, Emirates' Cargo Manager, New South Wales.

"The addition of a dedicated freighter service is a major milestone in Emirates SkyCargo's growth in Australia, and offers new possibilities for expansion into other areas of air cargo transport," said Johnson. "With the high Australian dollar driving up imports, this new flight will also provide us with much needed additional capacity into the market."

EK9920 will depart Dubai every Sunday at 20:35 and touch down in Singapore at 07:55 the following day. The B777F will then depart at 09:00 and complete its outbound journey at 18:30 when it touches down at Sydney International Airport.

The return service, EK 9921, will depart Sydney every Monday at 21:30 and land in Hong Kong at 04:35 on Tuesday. Departing Hong Kong at 07:35 as EK 9865, the service will then terminate in Dubai at 10:35.

With a long-range flying capacity and technologically advanced General Electric (GE) engines, the Boeing 777F provides greater flexibility than any other freighter aircraft currently in operation. It maintains the lowest fuel burn of any comparable sized aircraft, consuming nearly 18 per cent less fuel than today’s freighters.

Emirates SkyCargo introduced its first Boeing 777F in March 2009. In December 2010, it operated its longest ever non-stop flight on the Boeing 777F; 17.5 hours from Sydney to New York. Emirates is the largest operator of Boeing 777 aircraft in the world, with 91 in its fleet currently.

Road or air parcel couriers. Which is best?

The fluctuating cost of oil is nothing new, but a recent surge in price has caused a knock-on effect which has – so far – been felt most keenly in the aviation industry.

While Shell shareholders celebrated a 41 percent rise in first quarter profits, airlines like Delta and US Continental Holdings responded to the rocketing price of oil by adding $420 of fuel surcharges on flights to and from the U.S and Europe.

Now Troon-based courier service, Parcels Please is urging money-savvy consumers to save by opting for land-based courier companies as opposed to stomaching the added cost of sending parcels by air.

A spokesperson for the company said: “Fuel surcharges have a knock-on impact to the cost of tickets as well as the cost of sending mail and parcels via air.

“Surcharges are at least 50% higher than they were three years ago so we can expect the cost of air-based courier services to rise.

“While some argue fuel surcharges are just another way for airlines to make money, as long as these companies can prove it is a reimbursement of costs, consumers just have to live with these price hikes.”

While the rising cost of crude oil has also seen a hike in the price at the petrol pumps, the jump has certainly not been as severe with the average cost of a litre of fuel rising by between 10 – 20p.

Speaking about the rise in petrol prices a spokesperson for Parcels Please said: “Road-based courier are used to minor fluctuations in prices at the pump so, unlike air couriers, are unlikely to adjust their prices dramatically, if at all.

“On top of this, the 1p per litre cut in fuel duty laid out in 2011's Budget as aimed to help keep businesses on the road.

“This means customers of companies like Parcels Please can still enjoy competitive and cheap parcel delivery to France and other UK and European destinations without having to worry about the soaring cost of oil.”

(EDITOR: Whilst this is of no benefit to people needing to send parcels to worldwide destinations (unless using slower sea freight is not an option)  it would certainly make sense to look at costs comparing air and road freight within Europe.)