Rail freight has been given a boost with the scrapping of track access charges for the first six months of a new flow. Network Rail said the cost of TACs is about £1000 for each round trip, depending on the motive power, length and weight of the train.
As Network Rail is state-owned, the concession amounts to a government subsidy of rail freight, although two grants were already available. These are the Mode Shift Revenue Support scheme and Freight Facilities Grants.
The Modal Scheme evens out the cost of moving freight by road or rail, and the Department for Transport estimates that it removes 900,000 heavy lorry movements from the roads each year.
Freight Facilities Grants only exist in Scotland and Wales, and help with the costs of rail freight terminals.
The 600 freight trains which run on an average day save more than a million tonnes of carbon emissions a year, and ambitious targets have been set by the governments in London and Edinburgh encourage the sector to grow.
Network Rail says the reason for scrapping track access charges until a new flow can become established is its commitment to support the growth of rail freight.
Rail minister Lord Hendy said: ‘The rail freight sector plays a crucial role in keeping the country moving, providing a faster, greener and more efficient way of transporting goods. The Government’s policy is to promote and grow the use of freight services across the country and make moving goods by rail the obvious choice for businesses, and this initiative will do just that.’
Rail Freight Group director general Maggie Simpson has welcomed the new discount. She continued: ‘Many businesses are looking to move more freight by rail, but it can be a big step to start new services. This scheme provides welcome support for the first six months of operation, helping customers and operators to open up new routes.’