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Thursday 8 Jul 2010

BRITAIN RELIES ON RAIL FREIGHT – NEW STUDY CONFIRMS

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National

The British economy is boosted annually from £870m by the rail freight industry – new research from Network Rail reveals today. The freight industry further indirectly supports an economic output of £5.9bn, over six times its direct turnover.

Network Rail’s study, the Value and importance of rail freight, also shows:

 

• Rail transports over 100m tonnes of goods worth around £30bn every year
• The freight sector is supporting employment 14 times the number employed directly in the industry (4.7k compared to 66.6k)
• In total the UK freight sector contributes £299m in profits and wages to the UK economy
• Rail freight generates £185k worth of output per employee almost double the national average (£89k)
• The societal benefits from a shift from road to rail equate to £376m (2007/8) and up to £903m if it grows by 140% (2031). This would be a lot higher if the loss of revenue from vehicle excise duty was not taken into account
• Rail freight demand is predicted to grow by 30% over the next decade and up to 140% over 30 years

 

Network Rail’s director, planning and development Paul Plummer, said: “Britain relies on rail freight. More and more companies are switching to rail and reaping the economic and environmental benefits. As Britain climbs out of recession, Network Rail is boosting business by creating new opportunities for freight.

“Today we are seeing the greatest variety of goods transported by rail. Traditionally, rail freight has been dominated by bulk products such as steel and aggregates – unsuitable for road transport – but increasingly consumer goods such as foodstuffs, plasma screen televisions and even Christmas trees arrive by train.”

"Network Rail is committed to work closely with freight operators to improve efficiency and prioritise scarce funding for investment so that we can grow rail’s share of the freight business in an affordable way. Up and down the country Network Rail is working on investment schemes that will bring further benefits to business, to consumers and to the environment. These schemes often bring significant benefits to passengers as well, so this is all about making better use of the network."