Lack of rail freight policy making and investment has encouraged a sector which has fallen behind our European colleagues, change is required immediately.

Why Has the UK Rail Freight Sector Lagged Behind Europe?

The UK's rail freight sector has struggled compared to European counterparts due to historical infrastructure decisions, policy inconsistencies, and competition from road transport. While countries like Germany, France, and the Netherlands have heavily invested in rail freight, the UK has prioritised passenger services, leaving the freight industry underdeveloped and underfunded.

1. Historical & Structural Challenges

Privatization and Fragmentation

• The UK's rail network was privatised in the 1990s, creating a fragmented system where infrastructure (Network Rail) and train operators are separate entities.
• This fragmentation has discouraged long-term freight investment, as freight operators lack control over infrastructure development.
• In contrast, European countries like Germany (DB Cargo) and France (SNCF Fret) have integrated state-backed freight operators, ensuring strategic planning and investment.

Passenger-Dominated Network

• The UK’s rail network is heavily passenger-focused, with only 10% of rail traffic allocated to freight.
• Passenger trains are given priority over freight, causing frequent delays and inefficiencies.
• Unlike countries with dedicated freight corridors (e.g., Germany’s Betuweroute or France’s Fret corridors), the UK relies on mixed-use lines, limiting freight growth.

Key example of infrastructure at capacity:

• The Castlefield Corridor in Manchester is designated as “congested infrastructure”, making it almost impossible to add more freight capacity.

2. Infrastructure Limitations

Limited Electrification

• Only 10% of UK freight routes are electrified, forcing operators to rely on diesel, which is less efficient and more expensive.
• European networks have prioritised electrified freight corridors, reducing operational costs and emissions.

Prime example of the lack of available cost effective power routes:

• The Felixstowe to Midlands route, one of the UK’s busiest freight corridors, remains mostly unelectrified, increasing costs for freight operators.

Loading Gauge Restrictions (Train Size Limitations)

• UK railways have smaller tunnels and bridges, restricting the size of freight trains, this is historical and changes are extremely difficult to gain planning permission to demolish and very costly to alter to gain the extra gauge required..
• The UK has been slow to upgrade routes to W10/W12 loading gauge, limiting the efficiency of intermodal (container) traffic.
• In contrast, European networks accommodate larger trains, making rail freight more cost-effective.

Channel Tunnel and the UK rail interface issues:

• The Channel Tunnel allows larger European freight trains, but once in the UK, they must switch to smaller wagons, reducing efficiency.

Lack of Dedicated Freight Lines

• Most UK freight services operate on mixed-use lines, whereas European countries have invested in dedicated freight corridors.
• The Netherlands’ Betuweroute, a rail freight-only line, connects ports directly to the European network without interference from passenger trains.

Consider the 2 key routes north to access Scotland:

• The UK’s West Coast Main Line (WCML) is a critical freight corridor, but passenger services dominate, limiting freight growth.

3. Policy & Investment Failures

Inconsistent Government Support

• Rail freight investment in the UK has been inconsistent, with shifting priorities between governments.
• The UK lacks a long-term rail freight strategy, whereas countries like Germany have clear national freight policies.

Limiting the ability for rail-bourne freight to get a "fair" power deal:

• The UK’s rail freight grants have been cut over the years, making it harder for operators to compete with road transport.

Weak Competition with Road Transport

• The UK has invested heavily in roads, making HGVs (Heavy Goods Vehicles) cheaper and more flexible than rail freight.
• Fuel duty freezes and road subsidies have made road transport artificially cheaper than rail.
• Many businesses choose trucks over trains due to lower costs and better last-mile delivery options.

The cost to the environment does not get a mention when organisations need to move freight:

• The M6 Toll and motorway expansions have made trucking more competitive, reducing demand for rail freight.

Lack of Private Sector Investment

• Unlike Europe, where state-owned freight operators drive investment, the UK's privatised freight sector struggles to secure long-term funding.
• Freight operators must compete for access with passenger services, making private investment less attractive.

Example:

• Germany’s DB Cargo is state-backed, allowing it to invest in new locomotives and infrastructure, whereas UK freight operators rely on short-term contracts.

4. Market and Operational Challenges

Short Distances & Market Size

• The UK’s geography limits long-haul freight demand, unlike continental Europe, where rail freight covers long distances.
• Freight distances under 300 miles are often more cost-effective by truck, reducing the UK’s rail freight potential.

Comparison with european freight routes:

• In Germany, freight trains operate over long distances (e.g., Hamburg to Munich, 800km+), whereas in the UK, most freight routes are under 300km.
• Lack of incentive for european and UK freight routes to be designed and utilising the Channel Tunnel, reduces the potential for a jointed plan across longer routes.

Customer Perception & Reliability Issues

• Many UK businesses perceive rail freight as unreliable, due to delays and lack of investment.
• The lack of real-time tracking and flexible scheduling makes road transport more attractive.

Inflexibility and lack of forward thinking has added to the perception of poor performance:

• The grocery and retail sector prefers road haulage for "just-in-time" delivery, as rail lacks flexibility.
• Recent new entrants into the rail parcel services are making some changes, however this doesn't compare with the Red Star Parcel services that British Rail ran between 1963 and 2001 (under private ownership).

How Can the UK Improve Rail Freight?

Key Improvement	Solution
Dedicated Freight Routes	Upgrade Felixstowe–Nuneaton (F2N) & develop freight-only corridors.
Electrification	Prioritise electrification of key freight routes (e.g., Southampton-Midlands).
Bigger Freight Trains	Upgrade loading gauge (W12) to allow taller containers.
Government Policy	Introduce rail freight tax incentives & funding grants.
Investment in Digital Signalling	Deploy ETCS to optimise freight train scheduling.
Modal Shift Support	Penalize excessive HGV road freight use & subsidize rail freight.

If these measures are implemented, the UK could significantly expand its rail freight sector, reducing road congestion, cutting emissions, and making logistics more efficient.

Conclusion

The UK rail freight sector has fallen behind Europe due to historical infrastructure limitations, inconsistent government support, and competition from road transport. Without dedicated freight corridors, expanded electrification, and stronger policy incentives, the sector will continue to struggle. However, with the right investment and strategic planning, UK rail freight can become a key player in sustainable logistics. Some simple changes to the way we manage freight services during significant delay needs to be re-strategised. Currently during incidents affecting the operational railway, we quickly remove the freight services out of the way with a view to secure paths for "more important" passenger services. Is this a suitable consequence? Should we consider the movement of people over some very time critical and costly product, which could have even greater impact on the operation of a customers business.