McNulty findings welcomed by RFG
The Rail Value for Money Study puts forward recommendations to significantly reduce rail costs by 2020
The Rail Freight Group (RFG) has welcomed the publication of the McNulty report, which recommends actions to reduce rail costs by some 30% by the turn of the decade, but cautioned that there could be significant issues for rail freight if some of the more radical proposals are widely adopted.
The rail freight community has already achieved significant efficiencies, which have been recognised by Sir Roy McNulty, who stated: “The rail freight industry delivers economic and environmental benefits to the UK economy. The freight industry has invested heavily and achieved significant cost reductions in a competitive market. The industry operates across the entirety of the GB rail network, and will require the retention of a national and system-wide approach to activities such as capacity planning, network capability and timetabling if it is to capture further traffic from road.”
The Study has taken full account of the Secretary of State’s commitment in his written submission that accompanied the publication of its Interim Submission on 7th December 2010, in which he said: “I am also clear that the changes the Study is proposing must protect the interests of freight operators on the network."
The report went on to say: “The rail freight industry can contribute to value for money by maintaining its flexibility of operation, using network capacity more effectively, identifying routes that do not require to be maintained for freight services, and demonstrating to the rest of the industry the techniques it has employed to improve productivity.”
RFG Chairman Tony Berkeley, welcomed McNulty’s comments about the rail freight sector and said: “The rail freight sector will play its part in ensuring costs are reduced. We will be urging the Department for Transport (DfT) to ensure that restructuring maintains infrastructure independence, and recognises the needs of nationwide freight operators.”
Maggie Simpson, RFG Policy Manager, added: “The successful development of rail freight has been largely achieved through the open and competitive market it inhabits, stimulating investment and encouraging new operators into the sector. The reforms set out by McNulty have the potential to reduce costs further, but, for freight also have the potential to undue past progress. There is still particular concern over proposals to restructure the industry and pass control to train operators. This is something the RFG will be paying close attention to in the future.”
The RFG has put together a paper further outlining its views on the Rail Value for Money Study, which you can read in its Policy Section at www.rfg.org.uk
Published: 20/05/2011
