The Government has set a 40% rail freight growth target by 2040, aiming to strengthen supply chains and support economic growth.
The UK Government has set a target to increase rail freight by at least 40% by 2040, establishing a new milestone towards its longer-term ambition of increasing freight by at least 75% by 2050.
The announcement is being positioned as a way to provide greater certainty for the rail freight industry, encouraging businesses to invest while strengthening the role of Great British Railways (GBR) in supporting economic growth.
Rail freight already transports goods worth almost £34 billion to the UK economy each year. The Government estimates that achieving the new target could increase this figure by around £15 billion, allowing more products and materials to be transported across Britain by rail.
Freight growth and economic activity
The Government expects the increase to support a range of supply chains, including construction, retail and essential goods. A single freight train can carry enough materials to build around 30 homes, while Network Rail estimates that the new targets could increase the movement of construction materials by 45%.
The Government also expects rail freight carrying goods such as cars, wine, white goods and medicine to increase by around two-thirds.
Transport Secretary Heidi Alexander said: “Great British Railways will have a clear mission to help grow our economy by moving more of the goods British businesses rely on.
“Our new target gives the rail freight industry the certainty it needs to invest, helping businesses move more products, deliver the materials needed to build new homes and infrastructure, and support jobs across the country.”
The Government also highlighted the environmental benefits of shifting freight from road to rail. Meeting the target could save up to one million tonnes of carbon dioxide annually compared with transporting the same goods by road, while reducing pressure on the road network.
Great British Railways to oversee freight growth
The announcement comes as the Railways Bill begins its Committee Stage in the House of Lords. The legislation will establish Great British Railways and provide it with powers to support the new freight target.
These include strategic oversight of network access and two duties focused on supporting freight growth. A dedicated member of the GBR Board will also be responsible for freight, ensuring the needs of freight operators and their customers are considered in decision-making.
The Government said the changes are intended to help GBR work more closely with freight operators to identify additional network capacity and support investment.
Jeremy Westlake, Network Rail’s Chief Executive, said: “Rail freight is a vital part of our transport network and the UK economy, moving millions of tonnes of goods every day – putting food on our supermarket shelves, delivering the materials that build our homes and critical infrastructure, and much more besides.”
The Rail Freight Group has also welcomed the announcement, describing it as a further signal of the Government’s commitment to growing the sector.
Maggie Simpson OBE, RFG Director General, said: “Government has committed to rail freight growth as an essential part of delivering its ambitions for the UK. Moving more products by train is a critical enabler of good growth, be that in housebuilding, green energy or reindustrialisation. This new target will enable a focussed action on delivery across industry, Government and Great British Railways as it is established.
The 40% target provides the industry with a defined milestone before the longer-term 2050 ambition. Its delivery will depend on the railway creating sufficient capacity and enabling freight operators to respond to increased demand.
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