COMPLETED RAIL FREIGHT UPGRADE BOOST FOR BRITAIN: Official Opening of Southampton - Nuneaton Freight Upgrade

Monday 4 Apr 2011

COMPLETED RAIL FREIGHT UPGRADE BOOST FOR BRITAIN

Region & Route:
National

Bigger freight trains have started full operations between Southampton and the West Midlands following the completion of a multi-million pound rail upgrade, providing a welcome £374m* boost for the economy and helping to keep down the cost of everyday goods in shops across Britain.

The scheme allows freight trains to move goods, including food, clothing, electronics and other consumer products, around Britain in a quicker, cheaper, greener and more practical way using the larger, modern containers preferred by many global shipping firms. It is estimated that the upgrade would also remove up to 50,000 container lorries a year from the roads, easing traffic jams and helping reduce the billions of pounds road congestion costs the economy annually.

The project involved knocking down and rebuilding 16 bridges, lowering or slewing the track in 22 places, adjusting 11 station canopies and two station platforms, and setting the track through Southampton Tunnel in concrete to create more space for the larger containers to pass through on standard freight wagons. The project has been delivered more than £11.5m under the original £71m budget, largely as a result of the innovative approach used to lower the tracks through Southampton Tunnel.

Transport minister, Theresa Villiers said: “Ensuring economic stability and growth is vital and one way to achieve this is by investing in the UK’s rail freight network. That’s why we have provided £43m of funding to upgrade this important rail link between Southampton and the West Midlands, which will enable more goods to be transported across the country faster and more efficiently.”

Robin Gisby, Network Rail’s director of operations and customer services, said: “Britain relies on rail freight, with more and more companies switching to rail and reaping the economic and environmental benefits. The upgrade of the route from Southampton to Nuneaton was vital to keep rail competitive as an efficient and cost effective way to transport goods. It will also bring the added benefits of reduced carbon emissions and traffic congestion.

“Increasingly rail freight is playing an indispensable role in everyday life. For example, it delivers goods to stock our shops and supermarkets, coal to provide electricity to power the nation and aggregates for major industries. With the added environmental, efficiency and economic benefits it brings, continued investment, such as we’ve seen here, is essential.”

The Port of Southampton is home to the UK's second largest deep-sea container terminal and a key entry point for millions of imported products which are used by consumers and businesses across Britain. Currently around 25% of containers which are handled at Southampton are moved by rail. To increase this it was necessary to upgrade the railway to be able to carry the more modern 9' 6" or 'high-cube' containers on standard wagons, which are the most economical method for shipping goods, particularly from the Far East.

Rob Douglas, chairman of the South East England Development Agency (SEEDA), said: “Southampton is a global gateway to the economy of the South East and we are delighted our £4.9m investment, together with that of Advantage West Midlands, has helped deliver this new railway upgrade, which will help boost the economic performance of the area whilst easing congestion on the roads and reducing emissions. It will have a significant impact on the future economic success of the country and firmly place the South East on the global map of the internationally competitive rail freight industry as it opens the port to the West Midlands and beyond.”

Doug Morrison, port director, ABP Southampton, said: “In our 20 year Port master plan published last year, we stated our ambition to increase the proportion of containers carried by rail to 40%. This will reduce the number of containers that would otherwise be seen on local roads and the motorway network. The works are an essential starting point for us to achieve the 40% target and, when the container berth for mega-ships is completed in 2013, this new infrastructure will help support UK economic growth in years to come.”

Aart Hille Ris Lambers, business development manager for DP World Southampton, said: “Over the last few years we have seen the proportion of high-cube containers significantly increase with the current split at around 40%. With the gauge clearance works now complete, we can offer our customers a real choice in how they move their containers beyond the terminal gates. We expect the percentage of high cube containers to rise considerably, with associated benefits for the total supply chain and the environment.”

Sir Roy McNulty, Chair of Advantage West Midlands, said: “Today is an important milestone for the global competitiveness of the West Midlands economy. Rail Freight makes a major contribution to our economy, and the upgrade of the Southampton – Nuneaton rail freight link marks the successful completion of one of the region’s key transport priority projects. The improved connectivity to and from the region will support the increased use of rail freight for imported and exported goods, and give businesses access to wider global markets by enabling large freight containers to be transported worldwide through the Port of Southampton. The additional transport capacity will also help ease road congestion and significantly reduce CO2 emissions.”

Nigel Jones, head of planning for rail freight operator DB Schenker Rail, said: “The Government, Network Rail and other funding partners are to be congratulated on delivering the most significant upgrade to the national rail network for freight in decades. The legacy of this completed upgrade will be even more containers on the railway, faster deliveries for customers, road congestion reduced and lower carbon emissions. Everybody involved in this project deserves to be proud of that.”

Adam Cunliffe, managing director of Freightliner, commented: “We are delighted with the completion of the recent works enabling transportation of hi-cube containers on standard wagons on this key route. Investment in the rail infrastructure is key to enable us to remain competitive in our service offering, and continue to remove lorries from the UK's already congested road network. Freightliner is pleased to offer additional daily services with increased hi-cube capacity to our customers, providing them with a reliable, efficient and environmentally friendly alternative to road.”

Evidence suggests that the poor reliability and congestion on the road network has a negative impact on productivity. This costs the economy £7-8bn every year, and the figure is estimated to rise to at least £24bn by 2025. For example, between 1997 and 2009 road traffic in Hampshire increased by 13% to 9,414 million (breakdowns for other counties available on request) vehicle miles every year.

With the mainline route now complete, Network Rail will start work later this year to upgrade 28 structures and adjusting the tracks in 14 locations on the line from Southampton to Basingstoke via Romsey, Salisbury and Andover. Eight of these structures will be public highways, the remainder will be on private roads, bridleways or footpaths. This upgrade will allow freight trains to continue transporting the larger containers on any occasions when the main line is closed, for example when rail improvement works are being carried out.

Notes to editors

* The business case for the scheme shows a Net Present Value of £374m and a Benefit Cost Ratio of 4.21, which represents high value for money.

ABOUT THE SCHEME:

The freight industry makes a valuable contribution to the regional and national economy, and the government is investing £350m in projects to achieve the significant economic, efficiency and environmental benefits rail freight offers.

The upgrade of the route for freight trains between Southampton to Nuneaton will bring the following benefits:

Vehicles off the road
It is estimated this scheme will enable the transfer of up to 50,000 container freight journeys a year from Britain’s roads to the railway. This will help reduce carbon emissions and ease traffic congestion on the road network. Each freight train takes about 60 lorries off the roads and without the railway, the anticipated growth in freight traffic over the next 30 years would mean an extra 1.5 million lorry journeys on Britain’s roads each year.

Environmental
Rail is also one of the most environmentally friendly forms of transport. Road freight generates six times more carbon dioxide than rail freight for each tonne moved, so the greater transfer of freight from road to rail as a result of this scheme will lead to a significant reduction of carbon emissions.

Efficiency
High cube containers are larger than standard containers, and therefore more items can be transported within them, making them a more efficient means of distributing goods. Rail can be a cheaper, quicker and a more practical way for businesses to transport their goods around the country and beyond. At present high cube containers are too big to be carried on standard height platform wagons on much of the rail network. Therefore the only way to carry them by rail is on special low wagons. However, this reduces efficiency and capacity by up to 33%, making rail a less competitive form of transport for freight.

Economic growth
The upgraded rail freight link will improve the competitiveness and encourage economic growth within the South East region. This project will also make it easier to import and export goods, helping Britain compete more effectively in the global market.

The route takes freight trains from Southampton to the West Coast Main Line near Nuneaton, via Winchester, Basingstoke, Didcot, Oxford, Banbury, Leamington Spa and Warwick. Improvement works have been carried out along this route to structures which are not currently large enough for the high-cube containers to pass through.

Funding for this project has been agreed from the Department for Transport (DfT) via a Transport Innovation Fund TIF(P) grant. Additional funding is being provided by South East England Development Agency (SEEDA), ABP, Advantage West Midlands (AWM), European Regional Development Fund (ERDF) and the Network Rail Discretionary Fund.

The DfT’s Transport Innovation Fund, The Future of Transport" (July 2004) supports the costs of smarter, innovative local transport packages that combine demand management measures *support innovative mechanisms which raise new funds; *support the funding of regional, inter-regional and local schemes that are beneficial to national productivity.

The current freight container market is seeing a significant growth in the percentage of high cube containers. The usage of 9’ 6” containers currently stands at over 40%. This is expected to rise to between 50% and 70% by 2019.

ABOUT FREIGHT:

· Rail transports over 100m tonnes of goods worth around £30bn every year

· The British economy is boosted annually from £870m by the rail freight industry, which also further indirectly supports an economic output of £5.9bn, over six times its direct turnover.

· 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

ABOUT SEEDA:

SEEDA, the South East England Development Agency, is the Government-funded agency responsible for the sustainable economic development of the South East of England – the driving force of the UK’s economy. Through supporting businesses, encouraging innovation, developing skills and engaging with public and private partners, we aim to create a successful, sustainable future for the region.

SEEDA’s support helped deliver the following over the period 2009-2010:

- Over 10,000 jobs created or safeguarded, including 7,000 jobs created through inward investment work
- 65 inward investment successes
- Some 52,000 businesses were supported to improve performance
- Over 5,700 new businesses created and demonstrating growth
- Nearly 16,000 people assisted to improve their skills and over 15,000 assisted to gain employment

For more information please visit www.seeda.co.uk.

About ABP

ABP Southampton is one of the UK's busiest and most important ports which handled in 2010 more than 39 million tonnes of international trade. The port is: - home to the UK’s second largest container terminal, which has handled more than 1.9 million container units (teus) and generates 24 container train a day It is the number-one vehicle-handling port in the UK as well as the capital of the UK's cruise industry, with more than 1,243,000,000 passengers passing through in 2010, with the average economic benefit to the local economy rated at £1 million per cruise call by an independent Southampton Cruise Tourism study. (Ref: TTC International & Roger Tym Partners).

ABP is Britain's largest and leading ports group handling a quarter of the UK's seaborne trade and employing nearly 2000,staff across the business.

ABP owns and operates 21 ports in England, Scotland and Wales: Ayr, Barry, Barrow, Cardiff, Fleetwood, Garston, Goole, Grimsby, Hull, Immingham, Ipswich, King's Lynn, Lowestoft, Newport, Plymouth (Millbay), Port Talbot, Silloth, Southampton, Swansea, Teignmouth and Troon.

ABP also owns 49% of DP World Southampton and 33% of Tilbury Container Services.

In terms of railfreight – ABP Ports can generate nearly 100 railfreight movements a day serving destinations across Britain.

Contact information

Passengers / community members
Network Rail national helpline
03457 11 41 41

Latest travel advice
Please visit National Rail Enquiries

Journalists
Network Rail press office - National
020 3356 8700
mediarelations@networkrail.co.uk

About Network Rail

We own, operate and develop Britain's railway infrastructure; that's 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We run 20 of the UK's largest stations while all the others, over 2,500, are run by the country's train operating companies.

Usually, there are almost five million journeys made in the UK and over 600 freight trains run on the network. People depend on Britain's railway for their daily commute, to visit friends and loved ones and to get them home safe every day. Our role is to deliver a safe and reliable railway, so we carefully manage and deliver thousands of projects every year that form part of the multi-billion pound Railway Upgrade Plan, to grow and expand the nation's railway network to respond to the tremendous growth and demand the railway has experienced - a doubling of passenger journeys over the past 20 years.

Follow us on Twitter: @networkrail
Visit our online newsroom: www.networkrailmediacentre.co.uk