Rail Freight Strategy Aug 2007

8/13/2019 Rail Freight Strategy Aug 2007

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London Rail

Rail Freight Strategy

August 2007

MAYOR OF LONDON Transport for London


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3Transport for London rail freight strategy

Table of contents

1 Foreword 5

2 Executive summary 6

3 Strategic background 10

Introduction and Purpose of strategy 10Overview of rail freight in and around London 11

Structure of document 12

4 The strategic and policy context 14

TfL London rail role 14

National Rail Freight policy 14

Eddington Transport Study 15

London Plan policies 15

Climate Change Action Plan 16

Regional Spatial Strategies 17

Mayors Transport Strategy 18

T2025 18

Londons sustainable freight strategy 18

5 Key challenges 19

Introduction 19

Regional growth 20Growing rail mode share 21

Port growth 22

Planning issues 26

International connectivity 26

Changes in the competitive environment 27

Customer requirements 28

Network Rail freight forecasts 29


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6 Proposed solutions 30Introduction 30

Capacity and capability schemes in London 31

Capacity and capability schemes outside London 33

Encouraging more efficient use of the network 34

Terminal development 36

Other pro-rail policy initiatives 39

7 Appraisal 40

Appraisal and forecasting methodology 40

Scenarios 41

Appraisal results 42

8 Action plan and freight guidance 44

9 Next steps 46

Appendix A Freight forecasts 47

Appendix B Business case methodology 50

Appendix C Appraisal summary tables 53

Appendix D Costing assumptions 57

Appendix E Abbreviations 58

4


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Foreword

The UK rail freight industry is competitiveand dynamic. Over the last year, encouragingprogress has been made in planning howits future growth can be accommodated onthe rail network. Network Rails Freight RouteUtilisation Strategy, published in March 2007,has helped set the agenda, while the

Government has recognised the case forfunding infrastructure enhancement schemeswhich benefit freight. In July 2007, theupgrade of the Barking Gospel Oakline became the first project from theproductivity part of the TransportInnovation Fund to gain funding. Theprovision for funding a Strategic FreightNetwork in the Railways White Paper(July 2007) is also welcome.

However, there are still significant challengesto face. Some parts of the rail freightindustry have not shared in the generalsuccess, for example Channel Tunnel, andopportunities for modal switch are beingmissed because of a lack of suitableinfrastructure and facilities.

Transport for London supports freight onrail because it helps deliver progress witha number of the Mayors priorities. For

example; per tonne carried, rail freightproduces nearly 90% fewer emissions thanHGVs and it is also considerably safer thanroad freight. In London during 2005, therewere 1,040 road accident casualtiesassociated with goods vehicles. Therewere no casualties caused by rail freightaccidents in the whole UK.

The rail freight industry needs help to deliverthe wider benefits of rail freight to Londoners

and the UK. TfLs Rail Freight Strategy shows

that there is a good business case forintervening to support the industry andpresents a series of solutions that reflectboth passenger and freight growth needsover the next ten years.

During the preparation of the Strategy, we

undertook a number of engagement activitieswith stakeholders including rail industrypartners, such as Network Rail. This closecollaboration has ensured the developmentof realistic solutions, which are consistentwith TfLs Transport 2025 initiative.

The Strategy, which forms part ofLondons forthcoming sustainable freightstrategy (due to be released later in 2007),is published with a Planning Policy Toolkit,

a Development Control Toolkit and a listof potential small to medium sized sitesfor rail freight development in London.Together they form a planning resource toassist the development of rail freightterminals in London. The sites list alsoserves as a companion to the GLAsSupplementary Planning Guidance Landfor Transport Functions.

The strategy is intended to help drive forwardthe agenda for rail freight. It will inform TfLsinput to industry planning processes andprovide the basis for TfLs recommendationsfor investment in the Strategic FreightNetwork. We believe it demonstrates acommitment to growing the railwayscontribution, passenger and freight, makingLondon a more sustainable and liveable city.

Ian Brown

Managing Director, TfL London Rail


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Section 2

Executive summary

2.1This Rail Freight Strategy sets out howTransport for London (TfL) would like to seerail freight develop in London over the next10 years. TfL believes it is important for railfreight to flourish alongside a developingpassenger railway in London. Rail freight alsomakes an increasingly successful contribution

to the economy and quality of life ofLondoners and people throughout the UK.

2.2TfL estimates that implementing thestrategy will remove between 110 and 176million lorry miles from the UKs roads eachyear, which will produce benefits of between80 and 126 million a year.

2.3Freight is a vital element of the nationseconomy, but one associated with a number

of negative impacts on the environment andquality of life. Generally, these impacts aremuch more limited in the case of rail this iswhy the use of rail, rather than lorries, shouldbe encouraged. Rail is associated with feweraccidents, lower emissions of greenhouseand other harmful gases, and it alleviatesroad congestion, although not all types offreight can realistically be transferred to rail.

2.4Care is needed if the rail freight network,and facilities connected to it, are to beplanned in a cost-effective, affordable waywhich also delivers strong benefits for theeconomy, the environment and society asa whole.

2.5The rail system is currently enjoyinggrowth in both passenger and freightdemand. A balance of solutions will beneeded if the problems of success are to beaddressed in ways which meet national andregional policies at an affordable cost.

2.6The rail industry must strive to exploitexisting capacity to the full before proposing

the construction of expensive newinfrastructure. The right balance of solutionswill require the rigorous use of approvedguidelines and stakeholder consultation.

2.7The purpose of this Strategy, acompanion document to Londons

sustainable freight strategy, is to set out TfLsview of the rail freight challenges facingLondon over the next 10 years, together withthe actions necessary to address them. Thedocument outlines in detail how TfL aims tomeet its obligations in the London Plan andMayors Transport Strategy for rail freight. Itis intended to complement other industryplanning processes, notably Network RailsCross London and Freight Route UtilisationStrategies (RUS), and the Department for

Transports (DfTs) Regional PlanningAssessments (RPAs). It identifies a numberof proposed solutions for centralGovernment to consider. Following theGovernment's announcement that fundingto develop a Strategic Freight Network willbe available from 2010, this Strategy willform the basis of TfL's recommendationsfor taking this forward.

2.8The vision for freight, which will inform

Londons sustainable freight strategy, is:

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The safe, reliable and efficient movement

of freight and servicing trips to, from,

within and, where appropriate, through

London to support Londons economy, in

balance with the needs of other transport

users, Londons environment and

Londoners quality of life.


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2.9From this vision, the sustainable freightstrategy developed a number of objectivesunder the themes of Economy, Environmentand Society, which have been used to identify

a set of seven rail freight challenges forthe strategy to address. These are alsoimplicit in national rail freight forecasts,which TfL endorses.

2.10The main considerations for London areas follows:

Accommodating Londons growthandhelping to deliver key projects such as the2012 Olympic and Paralympic Games,Stratford City and the wider ThamesGateway. These are expected to increase

the volume of rail freight traffic, notablyaggregates, retail goods (includinginternational flows from Continental

Europe), and possibly some waste flows.There will be an associated increase in thevolume of freight handling at terminals andalso growth in passenger traffic, which willresult in competition for track access

Byincreasing rails mode share, rail canmake the transport system more

sustainable by meeting reduction targetsfor CO2emissions, as set out in theMayors Climate Change Action Plan. This


Economy objectives

Nationalfreig

htforecasts

Regional growth

Growing rail mode share

Port growth

International connectivity

Planning issues

Changes in competitive environment

Customer requirements

Environment objectives

Society objectives

Figure 2.1: Londons Rail Freight Challenges


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will increase the demand for capacity on therail network which serves London, and atterminals in and around the city

Accommodating expectedgrowth in deepsea container trafficbetween the Havenports (Felixstowe and Bathside Bay) and

North Thameside ports (Tilbury, LondonGateway) and the rest of the country

Improving Londons internationalcompetitiveness byimproving connectivitywith European rail freight networks.This supports the Eddington Review byfocusing on one of the key prioritieswhere transport investment is mosteffective, ie International Gateways. Inparticular, there are opportunities for

developing greater use of the ChannelTunnel for rail freight, notably the openingof HS1 in November 2007 and theprogressive liberalisation of Continental railfreight markets

Improving planning procedureto betterbalance strategic rail freight benefits andthe local impacts of freight activities

Responding to keychanges including incompetetive environment:

Accommodating expected growth in thehigh cube deep sea container market 1

The impact of European legislation, suchas the Working Time Directive on thecompetitiveness of the road haulageindustry

The impact of national road user charging

UK Government grant support for rail

freight facilities and flows Possible changes in the structure and

level of track access charges

Accommodatingrail freight customersrequirementswith others use ofthe network

In order to test possible interventions toencourage freight, a forecasting model wasdeveloped using industry forecasts of freight

growth and a number of sensitivity checks to

reflect housing growth scenarios in London,and the availability of strategic rail freightdistribution facilities.

2.11Potential interventions were groupedinto five categories:

a.Capacity and capability schemes withinLondon including:

London Overground routes, encompassingan upgrade of the North London Line, theWillesden - Gospel Oak - Barking route toW9 and W10 standards, and some workson the West London Line. On 25 July 2007,the Government approved 18.5m offunding towards the capacity and gaugeenhancement of the Willesden - Gospel

Oak - Barking route, following anapplication from Network Rail and TfLthrough P-TIF2

Lengthening of passenger services onother radial corridors to allow for growthin passenger numbers without impactingon freight

The Crossrail project, which includesenhancements to protect freightcapability while significantly increasing

passenger services

b.Capacity and capability schemes outsideLondon, in particular:

A staged upgrade of the Felixstowe -Peterborough - Nuneaton route betweenthe Haven Ports and the ECML and WCML

Extension of electrification outside London

c. Promotion of measures to make moreefficient use of the network.

Longer freight trains including infrastructureworks to support them on the network andat terminals

Opportunities for more efficientpossessions planning which can helpincrease the available capacity of thenetwork

Measures to improve the allocation andefficient use of train paths

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1 This refers to the new ISO international standard for container heights of 96 rather than 86.2 Productivity part of the Transport Innovation Fund


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d.Initiatives to promote terminaldevelopment to:

Increase the opportunities for usingrail in logistics operations, by encouragingthe development of large-scale railconnected distribution facilities in

appropriate locations

Identify and promote suitable sites inappropriate locations in London to supportthe construction and other industries thatrail can serve

Realise the potential of HS1 for reducingfreight haulage costs and increasing railsshare of UK/Continent trade flows

e. Promotion of policies designed to improve

the competitive advantage of rail freightover road freight, such as liberalisation ofEuropean rail freight market.

2.12The Strategy identifies a Do Minimumcase and evaluates both a Do More and aDo Most package of solutions for TfL andothers to undertake. The Do More packagehas a BCR of 3.3:1 and the Do Most packagea BCR of 2.5:1.

2.13The delivery programme shows thatsome key constraints can be addressedby 2013.

2.14To enable and support the package ofidentified solutions, the following approachwill be required:

Joint business cases that capture benefitsfrom enhancements to both freight andpassenger users

Ensuring that new freight facilities areincluded in Londons strategic planningframeworks, and existing terminal sitessafeguarded where appropriate

Planning guidance for freight terminal sitesto supplement Strategic Planning Guidanceon Land for Transport functions

Investigating and supporting, whereappropriate, innovative rail freight solutionssuch as rail freight consolidation centres,the use of Central London terminals forfreight, etc

Ensuring transport assessments consider

rail options

A fuller understanding of rail freightscontribution to sustainability and reducingCO2emissions

Three separate documents have beenproduced to accompany the Strategy:

A Planning Policy Toolkit, aimed atassisting Borough planning officers in

designating suitable sites for rail freight inBorough development plans

A Development Control Toolkit, to assistBorough development control officers inreacting to rail freight planning applications

A list of suitable sites for rail freightin London Boroughs



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Section 3

Strategic background

Introduction and purpose

of strategy

3.1This Rail Freight Strategy outlines howTfL believes rail freight should develop inLondon over the next 10 years. TfL believes itis important for rail freight to flourishalongside a developing passenger railway inLondon, and that the industry makes anincreasingly successful contribution to theeconomy and quality of life of Londoners andpeople throughout the UK.

3.2TfL estimates that implementation of theStrategy will remove between 110 and 176million lorry miles from the UKs roads eachyear, which will produce benefits in terms ofthe environment, congestion relief and roadsafety, worth between 80 and 126 milliona year.

3.3The background to this is a recognitionthat rail plays an important role in carryingthe nations freight and reducing the numberof lorries on the roads. It is associated withfewer accidents, lower emissions ofgreenhouse and other harmful gases, and italleviates road congestion. However, it is alsoimportant to understand what type of freight

can realistically be transferred to rail.

3.4Rail is particularly effective in somefreight markets generally where large,relatively standard volumes are travelling longdistances, such as aggregates or deep seacontainers. While, historically, rail has beenfar less able to compete in other markets, itsability to compete over shorter distances andin non-bulk markets is improving. Carefulstrategic analysis is therefore needed if the

rail network and facilities connected to it areto be planned for freight in a cost-effective,affordable way which then delivers strong

benefits for the economy, the environmentand wider society.

3.5Rail freight volumes have grown by 60%since 1995 and rails market share hasincreased from 8.5% to 11.5%. The industry,led by Network Rail, forecasts continuing

strong growth over the next 10 years. Thiswill add to the challenges on the rail networkfrom growing passenger demand. Nowhere isthis pressure more acute than in London, dueto the large and rapidly growing amount ofcontainerised freight from ports, as well asvery strong passenger demand.

3.6A balance of solutions will be needed ifthe problems of success, which the railindustry now faces, are to be solved in ways

which address national and regional policiesat an affordable cost. While the solutions willinclude schemes to expand the capacity andcapability of the rail infrastructure both inand outside London such schemes areexpensive and take time to plan and deliver,so less costly, shorter-term solutions willalso be needed.

3.7TfL needs to be confident that theproposals made offer best value for money.Finding ways of using existing capacity moreeffectively should be explored before lookingat the construction of expensive newinfrastructure. Operators should beencouraged to treat the paths they use as avaluable resource. Ways of improving the useof existing infrastructure capacity includeoperating better loaded and longer freighttrains (where this doesnt unduly compromiseperformance), and encouraging operators tomake best use of the paths available over

24 hours. For example, there may beopportunities for encouraging more freight totravel at night, subject to operational

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feasibility, including Network Rail engineeringneeds, and environmental acceptability(particularly in terms of noise).

3.8The right balance of solutions is likely toinclude some compromise, and this calls fora mature approach by the various industry

players. It involves acknowledging that thevarious users of the rail network havedifferent needs. Fast, reliable turn up and goservices will be important for passengers inLondon. A higher priority for freight operatorswill be maintaining consistent service qualityat minimum cost, and meeting theircustomers requirements in the highlycompetitive logistics industry.

3.9The strategy sits within an existing

national and regional policy framework. Thisincludes the 2007 Railways White PaperDelivering a Sustainable Railway, DfTsSustainable Distribution Strategy, the NetworkRail Eastern and Southern RPAs as well as theCross London and Freight Route UtilisationStrategies. It is a companion document toLondons sustainable freight strategy, whichitself is rooted in the existing London Plan,published in February 2004, and the MayorsTransport Strategy. It is also consistent with

T2025, TfLs 20 year Transport Vision forLondon. The Strategy, like the London Plan,looks 10 years ahead, so covers the period upto 2016. Three separate documents havebeen produced to provide guidance on thedevelopment of rail freight terminals:

Planning Policy Toolkit, aimed at assistingBorough planning officers in designatingsuitable sites for rail freight in Boroughdevelopment plans

Development Control Toolkit, to assistBorough development control officers inreacting to rail freight planning applications

A list of suitable sites for rail freightin London Boroughs to accompanythese documents

Overview of Rail freight in

and around London3.10The relative scale of road and rail freightmovements serving London is shown inFigure 3.1.

Figure 3.1: Estimated freight flows in London

(million tonnes per annum)

Rail 2000 Road 2001

Source: London Rail Freight Study, 2004

3.11Of the total freight serving London, railtonnage makes up approximately 6%. Thissuggests that rail plays only a marginal role inLondon. While it is true that rail may not bewell suited to all freight markets in London, it

plays a vital specialist role, which is likely toexpand.


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3.12In particular, the construction industryin London is heavily reliant on rail for thedistribution of building materials around thecity. Approximately 60% of the quarriedstone used in London is transported by railand, overall, rail plays a role in the transport

of 40% of all construction materials used inthe Capital. In addition, 790kt 3, or 29%,of municipal solid waste was moved byrail to landfill sites in regions outside Londonin 2005.

3.13However, this only tells part of thestory. The majority of rail freight in London istravelling through the city and doesnt serve itdirectly. The largest element of this transitfreight is deep sea container flows between

the major ports to the East of London andthe rest of the country. Other flows includeChannel Tunnel traffic and flows of nuclearwaste for reprocessing between nuclearpower stations in the East and South East ofEngland and Cumbria.

3.14This situation reflects Londons positionas the hub of the UK rail network. Therailways were built as a series of radial routesserving the main London termini. The orbitalroutes (North, West, South London Lines,Gospel Oak to Barking route, etc) allowfreight to pass between these radial routes.This arrangement has worked wellhistorically, but competing needs haveemerged more recently due to thesignificant growth in both passenger andfreight services.

3.15TfL wishes to introduce step changeimprovements in the quality of orbitalpassenger rail services in the next few years.At the same time the volumes of freighttransiting London but not serving the city are expected to continue growing at a fasterrate than rail freight in general, mainly due tomajor port developments. Strategic solutionsare required which recognise the orbitalroutes new role as intensively used mixedrailways. In this light a major task of thisstrategy is to set out TfLs view of whichroutes should be developed as part of the

Strategic Freight Network.

3.16Figures 3.2 and 3.3 provide an overviewof the main existing and planned terminals /ports for rail freight in London andsurrounding regions, together with the mainflows in and around the Capital.

Structure of documentSection 4 deals with the strategic policy

context of the Strategy, setting out theframework of national and regional policieswithin which it sits.

Section 5 identifies seven areas of railfreight challenges which the Strategy needsto address if its to meet its obligations

Section 6 identifies possible solutions in

five groups: capacity and capabilityschemes in London; capacity and capabilityschemes outside London; better use of theexisting network; terminal development;and other policies to improve thecompetitive advantage of rail freight

Section 7 sets out the appraisalmethodology and groups the measures intoDo More and Do Most packages. Theseare appraised against a Do Minimum

Section 8 provides an action plan whichincludes details of the envisagedpartnerships which will be needed to bringabout implementation and funding

Section 9 outlines a brief set of next steps

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3 Source: Waste Recycling Group


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Figure 3.2: Location of main freight generators and flows to and from London and the South East

Figure 3.3: Location of key freight flows schematic

Reproduced from Ordnance Survey material with the permission of the Controller of Her Majestys Stationary Office Crown Copyright.Unauthorised reproduction infringes Crown Copyright and may lead to prosecution or civil proceedings.Transport for London licence number LA100032379 2007


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Section 4

The strategic and policy context

TfL London Rail role

4.1TfL London Rail is responsible fordeveloping and implementing measuresrelated to the national railways in Londonthat address the Mayor of Londons transportobjectives, as set out in the London Plan and

the Mayors Transport Strategy. This is all setwithin policy on rail freight which issummarised below:

National Rail Freight Policy

4.2The 2007 Government White PaperDelivering a Sustainable Railway setout policies on freight, which aresummarised below:

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Growth is expected over the next10 years

Rail freight operators should use railwaycapacity as efficiently as possible, usingthe principle of use it or lose it

A Strategic Freight Network will becreated. 200 million will be available tobegin this during the HLOS period

Growth is to be encouraged to supportgoods being moved in a sustainableway which maximises benefits to theeconomy and society

The aim of seeing freight travelling byrail instead of road, wherever this makes

most sense, is to be delivered by acompetitive and dynamic private sectorrail freight industry the Governmentdoes not intend to get involved in thefreight operators everyday business andoperational issues

The Government will ensure thatpolicies and regulations do not createunnecessary obstacles to future growth.It will provide financial support where

it is affordable and offers the greatestenvironmental, congestion andsafety benefits


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Eddington Transport Study

4.3The Eddington report on the linksbetween transport and the economyrecognised the high economic value ofshorter journey times for business and freighttravel a 5% reduction in journey time for

such modes would deliver 2.5bn ofeconomic benefit. One of three strategicpriorities it identified was the UKsInternational Gateways. The Eddingtonreview presents a strong economic case forinvesting in infrastructure leading to keyports, making the point that some of theseare suffering from issues of congestionand unreliability.

4.4The Eddington study also emphasises the

importance of efficient urban and inter-urbantransport links. Since rail freight shares theselinks there is a clear connection between anefficient rail freight industry and an efficientoverall transport sector.

London Plan policies

4.5The Mayors London Plan is committedto reducing the environmental impact of road

freight movements where possible andimproving safety on Londons roads. To helpaddress this it aims to foster a progressiveshift of freight from road to more sustainablemodes such as rail It supports finding newcapacity by avoiding the most congestedpassenger routes and integrating newterminals within a routing policy. Thefollowing policies are relevant:


Policy 3C5: Londons international,

national and regional transport links

The Mayor will work with strategicpartners to:

Improve and expand Londons national

and international transport links forpassengers and freight, to supportLondons development

Achieve the spatial priorities of the plan,especially to support growth in theThames Gateway, and to achieveregeneration benefits while mitigatingadverse environmental impacts

Seek improved access to airports, portsand international rail termini by public

transport

Develop proposals with neighbouringregions to allow long distance traffic,especially rail freight, to bypass London

Improve links between London andsurrounding regions


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4.6The Plan also required in policy 3C4 thatSupplementary Planning Guidance (SPG) onLand for Transport should be prepared, andthe GLA has completed this. The draft SPGfor Industrial Land also encourages locatingindustrial development on rail connectedsites. This guidance is used by the

Mayor/GLA/TfL to ensure that developmentproposals do not result in a net loss of landidentified as needed for transport purposes.

Climate Change

Action Plan

4.7An increasingly important area of policyinfluencing transport is climate change. TheMayors Climate Change Action Plan sets the

target of stabilising Londons emissions at60% below 1990 levels by 2025 and limitingtotal CO2emissions between now and thento 600m tonnes.

Regional Spatial Strategies

4.8The East of England Regional Assemblyprepared a Draft Regional Spatial Strategy (RSS)in 2004. This was subjected to an Examination

in Public, and the Government Office for theEast of England has now published itsproposed alterations. It has the followingpolicies relevant to rail freight:

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Draft Policy T10: Strategic Freight

Movement

Priority should be given to the efficientand sustainable movement of freight and,in particular, seeking to increase the

proportion of the regions freight carriedon rail and by water where those are themost efficient modes

High priority will be given to measures toprovide adequate rail freight capability andcapacity on routes leading to the regionsexisting major ports of Tilbury andFelixstowe, and to Bathside Bay (Harwich)and London Gateway if and as approveddevelopment requires it

Provisions will be made for at least onestrategic rail freight interchange within theEast of England to serve London and theregion, at a location with good access tothe strategic rail routes and the strategichighway network

Existing well-located freight wharves andfacilities for rail and water freight interchangeshould be safeguarded for future use, wherethere is a reasonable prospect of developing

them for port operational uses andimproved provision made at locations withgood road and rail access to end users

Policy 3C25: Strategic Rail Intermodal

Freight Facilities

The Mayor will, and boroughs should,support the provision of strategic rail basedintermodal freight facilities. Each proposalwill be considered on its own merits and inthe context of wider policies in this plan.

Policy 3C24: Freight strategy

The Mayor will promote the sustainabledevelopment of the full range of road,rail and waterborne freight facilities inLondon and seek to improve integration

between modes and between majorrail interchanges and the centres theyserve. The development of a London railfreight bypass routes is supported. UDPpolicies should:

Implement the spatial aspects of thefreight element of the Mayors TransportStrategy as developed by the LondonSustainable Distribution Partnership

Seek to locate developments that

generate high levels of freight movementclose to major transport routes

Ensure that suitable sites and facilitiesare made available to enable the transferof freight to rail and water through theprotection of existing sites and theprovision of new sites

Ensure developments includeappropriate servicing facilities, off roadwherever practicable

Ensure collections and deliveries cantake place away from the main bus andtram routes


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4.9Among the supporting text to thepolicy is:

Access to ports is an important factor in the

definition of the network hierarchy. Theinvestment and management required for thenetwork to provide for existing and approvedmajor ports (Felixstowe, Harwich includingBathside Bay, and Tilbury and LondonGateway) needs to be considered inaccordance with Policy T10. Port developersshould contribute to the delivery of theseimprovements, and all developmentassociated with the regions ports shouldavoid any adverse impact on sites of

European importance for wildlife.

4.10The South East England RegionalAssembly published a Draft Regional SpatialStrategy in 2006. This was subjected to anExamination in Public and is not expected tobecome an official document until 2008. Ithas some policies that deal with rail freight,as below:


4 The Strategic Rail Authoritys powers were transferred to DfT in July 2005, with responsibility for strategic planningtransferred to Network Rail. This is carried out through the RUS process.

Draft Further Policy T4: Ports and Water

Transport states:

Access to the regions ports should bemanaged and enhanced to support theirdevelopment, and should be such as toenable them to contribute to national andregional objectives in relation to economicgrowth and regeneration. In accordance

with Policy T10, a key priority will be tomaximise the proportion of freight,particularly long distance freight, travellingto destinations beyond the region, bymodes other than road, consistent withcommercial viability.

Proposal 4E.8: TfL will work with the

Strategic Rail Authority 4 to ensure:

Additional network capacity for freight isprovided to tackle existing pinch pointsand to ensure that the growth in railfreight does not impose limitations onexisting or planned passenger services

The development of freight bypassroutes around London, wherever possibleremoving non-London traffic from denseresidential areas and releasing capacity

for expanded passenger services andLondon-based freight

Draft Policy T12: Rail Freight

The railway system should be developedto carry an increasing share of freightmovements. Priority should be given inother relevant regional strategies, Local

Development Documents, and LocalTransport Plans, providing enhancedcapacity for the movement of freight byrail on the following corridors:

i Southampton to West Midlands

ii Dover / Channel Tunnel to / through andaround London

iii Great Western Main Line

iv Portsmouth / Southampton to

West Midlands.

Draft Policy T13: Intermodal Interchanges

The Regional Assembly should work jointlywith DFT Rail and Network Rail, NetworkRail, Highways Agency, Freight TransportAssociation and local authorities, to identifybroad locations within the region for up tothree intermodal interchange facilities.

These facilities should be well related to:i Rail and road corridors capable of

accommodating the anticipated level offreight movements

ii The proposed markets

iii London.

Previously used rail accessible sites,including those owned by non-railwaybodies, should be protected from demandby non rail-based uses where there is areasonable prospect of developing themfor rail freight use


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Mayors Transport Strategy

4.11The Mayors Transport Strategy,published in 2001, contains a number ofpolicies and proposals of relevance to railfreight (albeit subject to subsequent changesto industry structure).

Transport 2025

4.12In 2006 TfL published its vision for

Londons transport system up to 2025. Itsvision is to create:

4.13The analysis showed that in the longer

term significant expansion in public transportcapacity, especially rail, is needed toaccommodate growth in Londons populationand employment. The Rail Freight Strategysupports both the vision and the morespecific rail objectives within T2025.

Londons sustainable

freight strategy

4.14The Mayors Transport Strategyproposed the establishment of a LondonSustainable Distribution Partnership (LSDP)

to bring together the wide range of interestsin freight in London to identify andimplement solutions. The LSDP has takenkey responsibility for the developmentand ownership of Londons sustainablefreight strategy, and this was consulted on

during 2006.4.15The vision for freight, identified by ahigh level working group of the LondonSustainable Distribution Partnership (LSDP),to inform Londons sustainable freightstrategy is:

4.16This vision drives the followingobjectives:

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Economy objectives:Support Londons growth in population

and economic activityImprove the efficiency of freight

distribution and servicing within London

Balance the needs of freight and servicingwith those of other transport users anddemands for Londons resources

Environment objectives:Improve air quality in London and

contribution to climate change byreducing emissions of local air pollutants

and CO2caused by freight and servicingImprove quality of life in London by

minimising the impact of noise andvibration caused by freight and servicing

Society objectives:Improve health and safety in London by

reducing the number of deaths andinjuries associated with freightmovement and servicing

Improve quality of life in London byreducing the negative impacts of freightand servicing on communities

The safe, reliable and efficient movement

of freight and servicing trips to, from,

within, and where appropriate, through

London to support Londons economy, in

balance with the needs of other transport

users, Londons environment and

Londoners quality of life.

A world class transport system that

delivers the safe, reliable and efficient

movement of people and goods that

enhances Londons economy,

environment and social exclusion

Policy 4.L:Londons international

transport links for passengers and freightshould be improved and expanded,subject to environmental constraints, andthere should be efficient and sustainablepublic transport access to airports andinternational rail termini.

Proposal 4K.5:TfL will work with (theStrategic Rail Authority) and the Londonboroughs to help ensure suitable sites andfacilities are made available to enable thetransfer of freight to rail, both through thedevelopment of existing sites and theprovision of new ones.


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Section 5

Key Challenges

Introduction

5.1The rail freight industry has a competitivestructure and services are not planned andspecified as they are for passengers.

Nevertheless, national, regional and localpolicies are important in determining how theindustry grows and develops. In identifyingthe key challenges facing rail freight inLondon over the next 10 years, it is necessaryto examine both forecast growth generatedby competitive factors including global and

national economic forces and issueswhich emerge from policy objectives(see Section 4).

5.2This section identifies seven keychallenges which face rail freight. These

are informed by the Economy, Environmentand Society objectives described in Section4.16. This analysis is consistent with theNational Rail freight forecasts contained inthe Network Rail Freight RUS and CrossLondon RUS.

Economy objectives

Nationalfreight

forecasts

Regional growth


Port growth


Planning issues



Environment objectives

Society objectives

Figure 5.1: Londons rail freight challenges


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Regional Growth

5.3Londons population is expected toincrease over the next ten years by around500,000 people and employment by around400,000 jobs. There will also be majorpopulation growth in the East and South Eastof England. The locations of the major

housing development areas are shown inFigure 5.2. This will also have a large impacton London, through higher numbers ofcommuter trips, since there is a high degreeof economic interdependence betweenLondon and its surrounding regions.

20

Figure 5.2: Major Development Areas in London, the South East and East of England


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5 Daventry International Rail Freight Terminal - this is a large rail connected distribution centre in the Midlands, adjacent to the M1. It hashad success in attracting new types of traffic to rail, including international and domestic non-bulk traffic for major supermarket chains.

5.4This growth presents a number ofchallenges and opportunities for rail freight

5.5Higher rates of housing and employmentconstruction will generate an increase in thedemand for construction materials. Giventhat rail currently has a share in the market

for delivering these in London ofapproximately 40%, it is likely that there willbe a need for greater terminal capacity and ahigher number of paths onthe network.

5.6Land for development will becomescarcer and this could have an impact on theavailability of land for rail freight facilities, ifformer industrial / railway land is sold off forresidential and other uses.

5.7The additional population will generatean increase in demand for goods which willincrease the volume of freight trips to, fromand within London, adding to congestion onthe roads if rail cannot carry some of thisfreight. The London Plan forecasts thatdemand for goods and services to 2026 willincrease by between 12% and 15%. Railcould help reduce this growingenvironmental footprint of London by

playing a greater role in the primarydistribution of retail goods. This will requiresuitable modern facilities, which to date havehad difficulties in gaining approval in theLondon area.

5.8The population and employment growthwill also lead to additional demand forpassenger rail services. Without new capacityon the London rail network, there will befewer paths available for new rail freight

flows. This is a particular issue on the currentorbital routes such as the North London Lineand West London Line, where there issignificant planned expansion in thefrequency and scope of orbital passenger

services, as well as growing freight demand. Itwill be important to ensure that adequatenetwork capacity exists for passenger andfreight needs, in the context of a growingLondon and South East region.

Growing rail freight

modal share

5.9The Mayors policies support measuresto increase rails mode share, largely forsustainability reasons. The scope for thisvaries by type of commodity. TfLs view ofthe prospects in each of the main marketsfor rail freight in London are as follows:

Construction: The construction industry inLondon is already a mature market for railand it is unlikely that significant additionalshare of this market can be captured.Nevertheless, major projects, includingthe 2012 Olympics, present opportunitiesfor rail.

Retail Distribution: Rail currently has alow share of the market for the primarydistribution of retail goods and lacks

suitable facilities. Where rail is involved,there is usually a long final road leg froma remote rail terminal such as DIRFT5. Ifsuitable facilities can be provided aroundLondon, there is an opportunity for rail togrow its share of this business substantially,helping to reduce Londons environmentalfootprint. This will require a number ofStrategic Rail Freight Interchanges to bedeveloped. There may also beopportunities for supplying Central Londonretailers by rail through some of the majorstations, such as Euston.


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International trade: UK trade has refocusedtowards the EU and towards greaterunitisation in recent decades. The openingof the Channel Tunnel has presented amajor opportunity for rail to capture asubstantial part of this trade, but to date it

has been largely unsuccessful. The reasonsfor this are mainly institutional. TfL believesthey can be resolved. Eurotunnel hasestimated that the market for rail basedfreight through the Channel Tunnel isbetween 6 and 14 million tonnes a year,which is equivalent to 200 to 500 trainsper week (in 2006, the volume carried wasestimated to be 1.6 million tonnes). Theincreased opportunities to move high gaugefreight using HS1 offers a major

opportunity for rail freight developmentin London.

Waste: About 6.7 million tonnes of allLondons waste 6 is taken to landfill sitesthat are located mainly outside the Capital.This is expected to decrease to 3.1 milliontonnes by 2020 7 as the Mayors strategiesto manage 85% of Londons waste insideLondon take effect. Only a small portion ofthis is currently taken by the more

sustainable modes of rail (0.8 milliontonnes) and water (0.7 million tonnes) 8

and there are opportunities to move moreof this waste in the future. There will alsobe increasing quantities of recyclatesaccumulated at waste managementfacilities across the Capital. It is essentialthat potential bulk loads are captured fortransport by rail. Suitable bulk recyclatestreams will include wastes frompackaging, electrical and electronicgoods and vehicles.

Port growth

5.10Structural changes in the UK economy,which reflect global economic trends, havemade the UK more reliant on imports ofmanufactured goods from Asia. As a result,the largest source of forecast rail freightgrowth over the next 10 years in London isthrough-traffic between the deep sea portsin the South East and East of England, andthe Midlands, North and Scotland. Felixstoweis the largest container port in the UK andthe Port of London the third largest. Between1994 and 2004, container volumes passingthrough the Port of London grew by 74%; thistrend is forecast to continue. The totalmarket for containers is forecast to grow by

60% between 2004 and 2016 9. Almost 50%of the UKs container handling capacity is atFelixstowe and London Ports 10 so volumesthere can be expected to grow substantially.

5.11There is also planned major new portcapacity at the following locations (all withplanning consent):

London Gateway, site of former ShellHaven refinery (North Thameside)

Bathside Bay (Haven Ports)Felixstowe South (Haven Ports)

226 All Londons waste include municipal solid waste, commercial and industrial waste and construction and demolition waste7 The London Plan: Spatial Development Strategy for Greater London: Housing Provision Targets, Waste and Minerals Alterations, Greater

London Authority, December 2006


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5.12The capacity of these new or expandedfacilities is shown in Figure 5.3

Figure 5.3: Existing throughput and planned new

port capacity in Haven Ports and North Thameside

Planned Actual throughput 2005

5.13This shows that the total plannedadditional capacity in the Haven Ports andNorth Thameside ports roughly equates tototal UK deep sea container throughput in2005. Forecasts of freight flows in the CrossLondon, Freight and Anglia RUS predict theneed for around 20 additional freight trainsper day by 2014/15 on the route from theHaven Ports (Great Eastern Main Line - North

London Line - West Coast Main Line). TheLondon Gateway development is forecast togenerate a further 10 to 15 trains on theNorth Thameside route.

23Transport for London rail freight strategy8 Figures obtained from Waste Recycling Group and Cory Environmental.9 UK Port Demand Forecasts to 2030 - MDS Transmodal for DfT

10 Maritime Statistics 2005 DfT

0

Lon

don

Gateway

Baths

ide

Bay

Tota

lnew

capac

ity

AllUKports

Fe

lixstowean

dLon

donports

Fe

lixstowe

South

80008000

9000

7000

6000

5000

4000

3000

2000

1000


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24

5.14Figure 5.4 shows the expected increase in intermodal trains from the Haven portsand North Thameside ports. In the longer term there is forecast to be a capacity gap in theLondon area.

Figure 5.4: Increase in freight demand from ports and Channel Tunnel


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Figure 5.5: Existing and Planned W10 Routes serving London

5.15The capacity challenge which thisgrowth presents for the rail networkbrings with it a further challenge: theaccommodation of the growing proportion ofdeep-sea traffic which is transported in highcube containers (the latest deep sea

container standard is 96 height, as opposedto 86). In 2002, the proportion of high cubecontainers was 28%. It was 31% in 2003,35% in 2004, and it is forecast to reach 45%by 2010. These containers can only betransported on a limited number of rail

routes (those with W10 gauge capability)using standard wagons. On other routes,where specialised wagons are required, fewercontainers can operate per train path, so thatrail is less able to compete with road. Thecurrent W10 routes between the South East

and East of England ports, and the Midlands,North and Scotland are through London, asshown in Figure 5.5. Options foraccommodating growth need to takegauging and electrification considerationsinto account.


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Planning issues

5.16Sufficient quantities of suitable land willbe required if rail freight is to play a greaterrole in serving Londons needs. The planningsystem has a vital role to play in facilitatingthe provision of new freight services. Thechallenge for the planning system is weighingup the balance of local concerns againststrategic benefits. There are a number ofpotential conflicts between the strategicneeds of rail freight and local planning policyand development pressures. These include:

Critical Mass: In order to accommodatefreight trains and supporting facilities, largesites of 40 Ha upwards with nearby roadand rail links and labour sources arerequired if rail is to develop new markets.There is a shortage of sites suitable forsuch Strategic Rail Freight Interchangeswithin and around London

Higher value uses: Housing, employmentand leisure often create higher value thanrail freight facilities which puts existing andpotential sites under development pressurefor alternative uses

Planning targets: Strategic housing andplanning targets place increasing pressurefor development on land which could beused for rail freight facilities

Perception: Rail freight uses are notperceived as being neighbour-friendly.Local authorities and residents are oftenkeen for alternatives such as housing tobe developed

Employment creation: Rail

freight/warehousing uses do not, in general,create as many jobs as other types ofemployment, for example, business parks,and the jobs are often perceived to berelatively unskilled

5.17Furthermore, the planning process isperceived to be slow. Delays in reachingplanning decisions raise costs and adduncertainty to the rail freight industry, withnegative implications for Londons economyand environment. For example, following the

refusal of planning permission for a strategicrail freight interchange in West London atColnbrook (LIFE) in 2002 no similiaralternatives have been delivered to date.


5.18Rail freight gains competitive advantageover road as distance increases whichsuggests rail should be able to capture a

relatively high share of the UK-Continenttrade in goods, through the use of theChannel Tunnel. Transport investment inInternational Gateways was also a priorityfor the Eddington Review. However, despiteearly success, Channel Tunnel rail freight hasnot managed to achieve a large share ofcross-Channel freight. A number of barriersto the development of international railfreight services using the Channel Tunnel,and the integration of the UK intoContinental rail freight networks remain,including:

The loading gauge on the UK national railnetwork severely restricts the range of railfreight and intermodal services which canbe operated in the UK. It reduces the poolof available wagons and units which can beused; this affects certain sectors such as,primary retail, household goods, andautomotive components. It also preventsstandard piggyback services from beingoffered

The slow implementation of Europeandirectives in some continental marketsaffects service quality

The uncertainty of cross-Channel railfreight access charges after the withdrawalof UK Government subvention of existingcharges, on 30 November 2006. There are

now thought to be only 3 to 4 freight trainsoperating through the Channel Tunnel,according to the Rail Freight Group11

26

11 RFG press release 26 January 2007 24% hike in charges causes more Channel Tunnel rail freight services to close12 UIC-GB+: This is the highest gauge currently available on mainland European railway systems


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14 Low Emission Zone, Lorry Control Scheme, Congestion Charge in Central London and a limited number of tolls forbridges etc.

5.19HS1, due to open in November 2007,will be the only rail line in the UK capable ofhandling the largest continental wagons. It isbuilt to a continental loading gauge12 and cantherefore help integrate London more fullyinto a continental freight network. It has

capability for high gauge, high payload trainswhich can offer much higher productivity forcertain commodities.

5.20The large pool of high-gauge wagonswhich exists on the Continent would also beable to serve the UK for the first time,offering further opportunities for reducingfreight business costs. However, there areissues to resolve if HS1 is to be used forfreight including a lack of compatible electric

traction, and a lack of approvals for tractionand rolling stock on HS1.

With support from the EuropeanCommission through its Marco Polointermodal development programme, anoutline offer of grant funding was made bythe EC to EWS in Summer 2007. This shoudhelp establish the commercial case forfreight on HS1.

5.21If the full potential of HS1 is to be

realised for freight, suitable facilities adjacentto the line in London will also be required. Infuture, HS1 may also provide access for high-gauge services to destinations to the north ofLondon, if gauge-cleared routes withadequate capacity can be developed. Thiswould allow a London HS1 freight terminalto develop a regional function in the longterm, ie primarily serving London and thesurrounding regions.

5.22TfL supports the Government's plans toensure that the British network can interfacewith the EU planned freight network. Wehave been working with the Rail FreightGroup and local boroughs to explore scopefor creating a phased development of a raillinked international distribution park in theBarking/Dagenham area, linked to HS1. TfLwill also support efforts to ensureappropriate access and charging regimes areput in place on HS1, the Channel Tunnel and

on Continental networks.

Changes in the

competitive environment

5.23A wide range of other factors in thecompetitive environment affect demand forrail freight services. There are a number of

changes which can be expected over theperiod of the Strategy:

European Directives: The road haulage andrail freight industries are subject to safetyand other regulation. The rail industry has asignificant safety advantage over roadhaulage. The European Working TimeDirective is expected to significantlyincrease the costs facing the road haulageindustry, and exacerbate an existing

shortage of lorry drivers in the UK. Railoperators are expecting to gain competitiveadvantage from this

Road User Charging: Access to the roadinfrastructure does not require priorplanning as is the case for rail, althoughcurrently road freight is subject to a varietyof schemes to regulate access in London14 .On the railways, scarce capacity is rationedthrough planning, and there is independent

regulation by the ORR of pricing andaccess. The Government plans to introducea national road pricing scheme, which isexpected to provide a more level playingfield between road and rail. This issue wasnot considered in the quantitative analysiscompleted for the Strategy as no detail isavailable yet on the nature of the scheme.However, TfL plans to undertake researchinto the likely effects of RUC on rail freightin London

Rail infrastructure charging: The conditionsunder which freight trains can access thenetwork may change following the ORRsreview of the track access regime in 2008.Any change is likely to lead to rail freightoperators being incentivised to operatetheir trains at times when the network isless congested, although the impact of thison behaviour in practice remains uncertain


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The industry is expected to reduce itsdependence on Government grant supportfor facilities and flows over the period ofthe Strategy

Customer requirements5.24If rail is to meet the challenges andopportunities it faces, and deliver against itsobjectives, it must offer an attractive serviceto its customers and accommodate theirneeds. These can be summarised as:

Quick journey times using reasonably directroutes: These are needed to keep fuel andcrew costs down, and also to allow anefficient utilisation of freight operators

assets. There are sometimes costthresholds which operators will want toavoid reaching, eg when a change in journeytime affects the number of round trips alocomotive and wagon set can completewithin 24 hours

Sufficient numbers of train paths to serve acustomers needs: For some commoditiesthese needs are variable, in terms oflocations served, timing of requirements or

volume. Freight operators need to be ableto respond to these variations in demand ifthey are to compete with road hauliers,who tend to offer high levels of flexibilityto their customers

A high level of reliability: Logistics providersneed to be assured that their goods willarrive within whatever time window theyexpect them there is some evidence thatmore work needs to be done to improve

perceptions of reliability15. This is clearlymore important for some commoditiesthan others. For products involved incomplex supply chain logistics, reliabledelivery within a fairly constrainedtimeframe is likely to be important. Forbulk products such as road stone, where

the train often delivers to a stock pile, thismay be less of an issue. Many supplychains are now lean meaning that thestorage of stock is kept to a minimum.This has implications for providing ondemand services

A high level of security: Customers needtheir goods to arrive safely and in thecondition they expect. Again theimportance of this issue will depend onthe commodity

Commercial needs: Train paths should becapable of handling trains which meetcustomers commercial needs. Thecapability of a route affects the way pathscan be used and this has an impact on their

viability. For certain types of traffic,improving the capability of the route, witha higher loading gauge, electrification orthe ability to operate longer or heaviertrains, improves the economics of aparticular flow.

28

15 Rail Freight Group - The Value of Rail Freight


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Figure 5.6: Recent and Forecast Growth in key rail freight sectors, 2001 - 2016

Construction: Channel Tunnel: Deep Sea:

Actual Actual Actual

Forecast Forecast Forecast

Network Rail

freight forecasts

5.25Network Rail forecasts overall UKtonnage growth of 27 to 31% between2006 and 2014/15. These forecasts are

unconstrained and generally assume currentpolicies continue. TfL has developed aforecasting methodology which draws heavilyon these forecasts but with a number ofmodifications to reflect particular strategicinterventions. This is explained inAppendix B.

5.26TfL has examined the implications ofthe forecasts for London. Estimates of tonne

kilometres have been derived for three of themain categories of freight, which either serveLondon or pass through it. These predict amuch higher growth rate in the Capital thanfor the UK overall. The reason for this is thatthe fastest growing sectors, such as

intermodal and Channel Tunnel are importantin London, whereas many of the slowergrowing (or declining) sectors such as coal, oiland minerals are much less important inLondon. Figure 5.6 shows national growthbetween 2001 and 2005 in deep seacontainers, Channel Tunnel and construction,three rail freight sectors of particularimportance in London, and forecast growthto 2016 (based on National Rail Freight RUS).

5.27Network Rail published its Freight RUSin March 2007. This sets out the expectedgrowth on the entire network used by freight,as well as a strategy for dealing with thisincrease. In terms of the London area, itpredicts growth of over 15 trains per day onthe North London Line, and over 15 trains

per day on the South London and WestLondon Lines (above 2004/05 levels). It alsosuggests growth of between 10 and 15 trainsper day on the Barking to Gospel Oak line.

02001 2002 2003

Year

Billionnettonnekms

2004 2005 2016

8

7

6

5

4

3

2

1


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Section 6

Proposed solutions

6.1The five groups of proposed solutions are designed to address the seven key challengesidentified in Section 4.

Challenges Proposed solutions

30

Capacity and capability schemes

in London

Capacity and capability schemes

outside London

Better use of networkNationalfreightfor

ecasts

Regional growth


Port growth


Planning issues



Terminal development

Other pro rail policies

Figure 6.1: Challenges and proposed solutions

Introduction


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Capacity and capability

schemes in London

6.2The main radial freight routes are:WCML, GWML, GEML, ECML, MML15 roughlyin order of importance, together with theChannel Tunnel access routes through southLondon. These are linked by a series oforbital routes including the NLL, GOB, WLL,SLL and Kew East route.

6.3Line capacity is in short supply onLondons rail network, and in the short termwill come under increased pressure fromplans for additional off-peak passengerservices especially on the NLL, GOB, WLLand Kew East orbital routes.

6.4Gauge enhancement works will increasethe route options available and thereforepotentially improve the reliability of some railfreight services. They will also permit railcontainer flows to maintain and grow theirmarket share.

6.5The packages propose a number oftargeted capacity and capability schemeswithin London, as below:

London Overground routes

6.6TfL will take over responsibility formanagement of a number of orbitalpassenger routes on Londons rail network inNovember 2007. These are shared withfreight trains over substantial sections,

including:NLL between Stratford and WCML (both

routes via Primrose Hill and Gospel Oak)

GOB line (route joins NLL at Gospel Oak)

WLL between Willesden Junction andClapham Junction;

Kew East Line (Willesden Junction toSouth Acton)

6.6Intensification of services, together withother improvements, is planned. The servicewill be known as London Overground.Infrastructure works to enable passengerservice improvements are taking freightneeds into account.

6.7These lines are examined below:


15 See Appendix E for definition of acronyms.


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North London Line

6.8TfL, along with its partners NetworkRail and the Olympic Delivery Authority, isplanning and funding a major infrastructureinvestment project to support theintroduction of London Overground services.

Most of the required work is on the NorthLondon Line, and in particular, on theStratford to Camden Road section. Theinfrastructure is being designed on the basisof providing capacity for broadly four freightpaths per hour. Maintaining this freightcapacity represents the majority of theinvestment TfL and its partners areundertaking within the project, including:

Four-tracking sections west of Dalston

A Channelsea avoiding Line

Extension of the Angel Lane Loop

Willesden - Gospel Oak - Barking Line

6.9TfL is working with Network Rail toprovide a major phased upgrade to theWillesden - Gospel Oak - Barking corridorwhich will benefit both freight users andpassengers. This involves:

Strengthening/reconstruction of bridges andearthworks and track renewal on Barking toGospel Oak route

W9/W10 gauging to provide:

Diversionary capability during theplanned blockades for the North LondonLine works in 2009 and 2010

Long term network resilience and

capacity benefits. In particular, this routehas the advantage of offering a gradeseparated crossing of the Great EasternMain Line for North Thameside freight

Additional signalled capacity allowingheadway improvements on the GospelOak to Barking section to provide capacityfor four passenger and four freight trainsper hour

In the long term, and subject to anadequate business case, electrificationfrom Gospel Oak to South Tottenham west

junction and from South Tottenham eastjunction to Woodgrange Park. This wouldfacilitate improved environmental

performance of freight services through thesubstitution of electric traction for diesel 16

6.10In July 2007, the DfT announced thatthe gauge and capacity enhancement for theBarking to Gospel Oak/Willesden route wouldbe funded through P-TIF (the productivityelement of the TIF scheme). By helpingNorth Thameside freight avoid the GEMain Line and Stratford, this will facilitatefuture passenger service improvements as

well as improve network resilience andcapacity for freight.

West London Line

6.11TfL wishes to see an increase in thepassenger service on the West London linebetween Willesden Junction and ClaphamJunction, to up to six trains per hour (fourOverground and two services run by otheroperators). Additional stations will also open

shortly to serve local developments,increasing the complexity of pathing trainsalong this route.

6.12The interaction of freight and passengerservices on the West London Line is subjectto further investigation, to ensure sufficientcapacity is provided in future. As part of theNorth London Railway Infrastructure Project,capacity enhancements are planned.

Kew East Line

6.13This route will be used by LondonOverground services serving Richmond. Nointensification of this service (four passengertrains per hour) is planned and no works tothis route are envisaged as part of the NorthLondon Railway Infrastructure Project.However, TfL believes the route has potentialto be developed in terms of both capability

32

16 This would require the procurement of electric locomotives for freight services, which is not currently planned.


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and capacity as a diversionary route forfreight using the West London Line. This maybe dependent on significant electrification,capacity, and signal immunisation works,including removing a flat junction at Barnes,and works on the District and Piccadilly Tube

lines where the Kew East Line crosses them.

South London Line

6.14The initial London Overground plans donot include services to Clapham Junction.However, a 4tph passenger service isenvisaged as an extension of services. TheSouth London Line has generally fewerconstraints or growth pressures than theNorth London Line. However, in order to

provide for TfLs passenger aspirations onthis route and maintain sufficient freightcapability, it is anticipated that someinfrastructure works will be necessary. Theseare considered likely to involve theinstallation of bi-directional signalling on thesection of the route near Clapham Junction,where future London Overground servicesmay share tracks with freight services.

Crossrail line 1

6.15The Crossrail project is being developedjointly by TfL and DfT. Although the schemeinvolves a significant intensification ofpassenger services on existing radial routes,particularly in the west, many of theenhancements being proposed are to permitfreight to continue existing operations withsome capacity for growth. A number ofprojects, such as the gauge enhancement and

capacity scheme for the Barking to GospelOak/Willesden and Felixstowe to Nuneatonroutes have a facilitating role for Crossrail.

Other passenger capacity enhancementschemes

6.16TfL London Rail is promoting a range ofschemes to increase rail capacity to meetLondons needs by 2025. These are designedto minimise the impact on network capacity

for other users, including freight. Theyinclude train lengthening schemes, whichprovide additional capacity without affectingthe availability of paths on the network.

Capacity and capability

schemes outside London

6.17There are schemes outside London

which TfL supports because of theirbeneficial impact within London. In particular,TfL supports the phased upgrade of theFelixstowe - Peterborough - Nuneaton routein order to enable more freight capacity fromthe Haven ports to the West Midlands andthe North West, using a cross-country routefrom Ipswich to Nuneaton. This couldeventually be used to divert some freighttraffic away from busy cross-London routes,and creating additional capacity for passengerservices. This proposal is supported byNetwork Rail in the Freight RUS and WestAnglia RUS. The proposals will ensure thatgrowth in rail freight flows, operating via theHaven ports is not hampered by capacityconstraints on the GEML.

6.18The means of achieving this are:

Staged gauge clearance between Ipswichand Nuneaton, with Ipswich to

Peterborough as a first stage to give accessto the ECML, and then betweenPeterborough and Nuneaton to give accessto the WCML

Staged capacity enhancements betweenIpswich and Peterborough and thenbetween Peterborough and Nuneaton

Train lengthening in the long term toprovide extra capacity



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6.19TfL supports Network Rails applicationfor Transport Innovation Funding from theDfT for gauge enhancements betweenPeterborough and Nuneaton. The DfTannounced that this scheme was being takenforward to the next stage of assessment in

December 2006. The gauge enhancement ofthe Felixstowe to Peterborough section isbeing funded through a Section 106agreement with the developers of BathsideBay/Felixstowe South ports. TfL supports theincorporation of this route into the StrategicFreight Network.

6.20The map in Figure 6.1 shows there issufficient capacity for all additional portgrowth if both the Felixstowe - Nuneaton and

Gospel Oak - Barking routes are developed.

Encouraging more efficient

use of the network

6.21The analysis of supply and demand inSections 4 and 5 presents a snapshot of thepressures on the network in 2016. This

enabled TfL to assess the requirements forpassenger services in the long run. However,it does not capture the longer term impactsof the port developments, which will not befelt on the rail network until a number ofyears after 2016. A strategic approach toroute development will therefore require alonger term view to be taken. This shouldinclude consideration of the full range ofways in which capacity can be delivered inaddition to infrastructure works aimed atproviding higher numbers of paths.

34

Figure 6.2: Rail demand and capacity on key port routes


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The following opportunities shouldbe considered:

Opportunities for more efficientpossessions planning

6.22The development of alternative parallel

W10 gauge routes provides scope forimproving the utilisation of the network in away which may add capacity. In particular, astrategic gauging strategy (see figure 5.5)could facilitate a significantly improvedengineering possessions regime. Theavailability of alternative routes at nightallows the possibility of full line possessionsto be exploited, which if properlycoordinated would allow greater timetabledcapacity at night. Inefficient single-line

working could be eliminated, and longerpossessions could be implemented.

Freight train lengthening

6.23A way of increasing capacity forcontainer trains is train lengthening. In thelong term, train lengths could be increasedfrom 540m to up to 775m, which in principleprovides almost 40% additional capacity perpath. For Haven Ports traffic, this wouldrequire a major reconfiguration of IpswichYard and the lengthening of a number ofloops on the GEML. Inland terminal facilitieswould also have to be upgraded which couldbe done on an incremental basis. Longertrains would also require sufficientlypowerful traction to make efficient use of thepaths they use. This option should becarefully coordinated with proposals forelectrification policy on the deep seacontainer routes, and is considered to be a

medium to long-term measure.Use and allocation of paths

6.24The efficient operation of passengerand freight trains on the same lines ismuch more complicated than the operationof just one or the other. In the absenceof the construction of new routes, thiswill have to continue on large parts ofLondons rail network. However, the efficientuse of the network can be achieved by

encouraging performance of passenger and

freight trains to be as similar as possible (ieacceleration, running speed, braking, etc).This may require higher power to weightratios for freight trains than would be impliedby the operators own needs.

6.25TfL believes the structure of charges

could be designed to encourage rail networkusers to make better overall use of thescarce capacity available. This does not implythat the overall level of charges shouldnecessarily be higher.

6.26TfL has done some analysis into therelative value of train paths. This shows thatpaths which are used for freight do not varysignificantly by time of day, although inabsolute terms they are often higher than the

value of passenger paths. In contrast, thevalue of passenger paths varies significantly,with those in the peaks much more valuablethan outside the peaks. This relativitysuggests that the network can best beutilised by giving greater priority to passengertrains at peak times than freight. Thishappens through the current administrativesystem, but the merits of allocating capacityaccording to economic principles should beinvestigated.

6.27As part of the 2008 Periodic Review, theOffice of Rail Regulation is planning theimplementation of some form of reservationcharge in Control Period 4. The aim of this isto promote the efficient holding ofslots/rights by operators by encouragingthem to give up rights they do not use orvalue. This will provide an additionalincentive based on pricing rather thanadministrative means.



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6.28The ORR also considered freight-specific fixed costs further in their PeriodicReview 2008, including taking into accountthe Governments position that freightshould pay the full costs of freight-only lines.This concluded that only the coal and nuclear

markets could bear to pay the full costs oftheir use of freight-only lines.

6.29TfL would like to see the proportion offixed versus variable charge adjusted wherenecessary. This would reflect an accuraterecovery of Network Rails costs, correctlyapportioned between users and based onroute-specific circumstances.

6.30ORR published Advice to Ministers anda Framework for Setting Access Charges

document in February 2007. It decided thatthere was support in the industry for thereform of access charges, and is developing amore detailed proposal to introduce areservation charge. It is also working on analternative scheme which would tighten upexisting administrative procedures to betterreflect scarcity value.

Terminal development6.31Many of these issues can be addressedlocally. TfL wants to work with Londonboroughs to give more emphasis to thepositive aspects of rail freight, in particularthe strategic benefits of encouraging morefreight onto rail.

6.32Transport assessments used to supportplanning applications for all types of majordevelopments should prioritise moresustainable modes, such as rail, where this isappropriate in the construction andoperational phases.

Guidance on development of rail

freight terminals

6.33Provision of new rail freight terminalsand transhipment points is required in theLondon area to increase rails market share ofgoods moved to the Capital. Although

strategically vital, such terminals oftengenerate significant local opposition. TfL

wants to promote rail freight terminals inLondon by giving local authorities moreinformation about potential sites, the railfreight aspects of planning for suchdevelopments, and the benefits of railfreight.

6.34TfL wants to encourage thedevelopment of three types of sites inLondon over the period of the strategy.These are:

Large, new, multimodal distribution centreson the periphery of London, adjacent to theM25 or motorways radiating out of Londonto allow rail to develop its role in theprimary retail distribution market; TfL plansto work with other regional authorities to

provide further guidance during 2007 aboutthe development of Strategic Rail FreightInterchanges to serve London

Facilities to support international freightusing HS1 see below; the main marketswhich could benefit are primary retail,automotive and white goods

Smaller, single-user freight terminals,generally offering basic functions for bulkbusinesses, particularly in the constructionand waste sectors, concentrating on localmarkets. These could be developed fromfreight terminals in current operation totake additional rail volumes whereoperationally and commercially feasible,and from the development of terminalsthat have fallen into disuse. There is anincreasing need for temporary sitesreflecting the growth in large constructionsites served by rail

6.35TfL has commissioned work to developour understanding of potential sites, theirfacilities, associated planning constraints,road and rail access and capacity issues.

6.36Alongside this strategy, TfL is providingthree additional resources to support thedevelopment of smaller sites within London.These are:

A list of potential sites (there is a separate

note describing how this should be used)

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A Planning Policy Toolkit

A Development Control Toolkit

6.37These toolkits are designed to helpplanning agencies, in particular LondonsBoroughs, work better to deliver the freight

facilities the city needs through their planningprocesses. They should also provideguidance to developers about the potentialof rail, and how best to prepare planningapplications.

6.38An assessment of all Londons wastetransport movements is being undertaken byTfL in the Pan London Construction andWaste Transport Modelling project. Thislogistics model will help identify key

locations for new rail-linked wastemanagement sites.

HS1 freight terminal

6.39The opening of HS1 provides aparticular opportunity to delivera major productivity enhancing project byconnecting the UK to the high loading gaugecontinental rail network. High gaugeEuropean trains cannot currently access the

UK and substantial works would be neededto provide penetration on the classicnetwork. The Ripple Lane/Renwick Road areaof Barking, and the Ford site at Dagenham,form the only suitable location within theGLA area which is adjacent to HS1 andtherefore capable of accommodating thesetrains without gauge clearance works.

6.40There is now a charging regime forfreight on HS1, but it imposes heavyperformance penalties. This makes the mostlikely type of freight on HS1 time-sensitive,high value freight, as substantial investmentin expensive high performance locomotives

may be required. The majority of slowfreight will probably continue to use theexisting lines through Kent.

6.41TfL have identified the need for anextensive modern rail facility on the DIRFTmodel. This would allow international freightactivities to agglomerate around the HS1connection at Ripple Lane. EnglishPartnerships have recently completed aRegeneration Framework Study of the A13

corridor which makes provision for such afacility. This could provide up to 200,000square metres of floor space which isestimated to be capable of supportingbetween 1,400 and 2,500 jobs directly, andbetween 500 and 900 jobs indirectly.

6.42TfL plans to continue to work with theborough and relevant agencies to gainsupport for the principle of rail-connecteddevelopment on this site.


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Other pro-rail

policy initiatives

6.44There is also a range of policy initiativesthat could help to support the wellestablished Government policy of

encouraging modal shift from road freight torail by making rail freight more competitive.

Promotion of liberalisation of accessto rail infrastructure in Continental Europe.This will promote environmentalsustainability and rail freights role inassisting London, and the UK, to meet itsCO2reduction targets

Introduction of a road pricing scheme thiswill help to create a more level playing fieldin terms of payment for infrastructure atpoint of use. The impact of road usercharges on rail forecasts is beyond thescope of this strategy, as there is nodefined scheme and the effect of roadpricing is likely only to be felt at the end ofthe strategys planning horizon. The effecton the attractiveness of rail is not yet clear,as reduced road congestion could act toencourage freight to be transported by

road. However, access to rail terminals,such as Willesden, could be improved,which would have a positive impact on railfreights mode share. TfL plan to undertakeresearch on the effects of RUC on freightin London.


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Section 7

Appraisal

Appraisal and forecasting

methodology

7.1The appraisal takes into account:

Rails generally lower pollution andcongestion costs. These values are

incorporated in a measure called SensitiveLorry Miles (SLM), which represents thevalue to society of switching a lorry milefrom road to its rail equivalent

SLM values represent the environmentaland social benefits of removing HeavyGoods Vehicle (HGV) journeys from theroad network by switching the freight to amore sustainable mode, such as rail orwater. This is quantified in terms of

emission and noise costs of HGVs,congestion costs of HGVs by road type,and accident costs avoided

Effects on government revenuesand expenditure

Capital costs of freight-relatedenhancements

7.2The appraisal does not take into accountthe difference in freight haulier costs for

transporting goods by rail rather than by roadbecause no satisfactory differential could beestablished from analysis. Also, it does notaccount for any impact on rail passengerrevenues, as it was considered that theimpact of additional freight trains on thenetwork would be broadly neutral topassenger services, as most growth wouldtake place at off-peak times, or infrastructurewould be upgraded to cope with theadditional trains.

7.3The appraisal took into account thefollowing:

Future market led demand, sourced fromthe Freight and Cross London RUSdocuments, and TfLs Anglia Rail CorridorPlan

The provision of additional rail connectedwarehousing, sourced from estimates ofadditional traffic from site promoters

Policy led interventions

Additional regulation of the roadhaulage industry

Measures to promote the liberalisationof the rail freight market in Europe

7.4Additionally, the impact of a new HS1 railfreight terminal at Ripple Lane in Barking wasconsidered using information contained withthe Network Rail Cross London RUS. Thiswould receive freight trains from Europe, viathe Channel Tunnel and the HS1, making useof the European standard loading gaugeavailable on these routes. It should be notedthat this project is in the early stages ofdevelopment.

7.5It was also assumed that train lengthswould increase in future, enabling each trainto carry more freight and remove a greatervolume of traffic from the road, generatingadditional benefits.

7.6Appendix B has more information aboutassumptions and calculations.

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Scenarios

7.7Three scenarios were defined for thepurposes of appraising the predicted futureyear freight flows. These scenarios reflecteddifferent levels of growth in the rail freightmarket, and investment in the rail network to

accommodate these flows, incorporating theimpacts of adjustment to public policy thatcould affect rail freight.

7.8The material included in the scenarioscan be linked back to the main challengesreferred to in section 3. Continuing growth inLondons economy and the flows of freightthrough the South East ports are reflected inthe freight forecasts used for each scenario.Growing modal share and changes in the

competitive environment are modelled in thescenarios through the application of policiesthat are pro-rail freight, such as additionalregulation of road haulage. Internationalconnectivity is addressed in the scenariosthrough the provision of additional facilitiesto encourage the growth of rail freightthrough the Channel Tunnel. Finally, planningissues were addressed through theincorporation of additional Strategic RailFreight Interchanges in the freight forecasts,

reflecting a positive outcome for TfLsattempt to influence planning policy in thisarea.

7.9Three scenarios were modelled, DoMinimum, Do More and Do Most'. Theywere structured to reflect the likelihood ofthe various outcomes and policies discussedin the Strategy. The most likely outcomeswere included in the Do Minimum scenario(such as the growth in traffic via the ports),

with the less likely being included in theother two scenarios.

7.10Items in the Do Minimum are assumedto be included in the Do More and the DoMore items are assumed to be i