British rail freight statistics show intermodal incentives working

Britain’s Office of Rail and Road has published a regular review of quarterly rail freight statistics, covering 1 July to 30 September 2024. Total freight moved was 4,198 million net tonne-kilometres in the latest quarter. That’s up 2%, compared with the same quarter in 2023. Biomass, intermodal non-maritime and domestic waste had the largest percentage increases in freight moved.

Rail freight figures offer a barometer of the UK’s national economy. In that respect, it is encouraging to find that freight moved was higher than in any quarter since January to March 2022. Although, it should be noted that by the metric of weight by distance, road transport still accounts for 80% of the total. The shape of the UK economy does tend to suit the lightweight short haul at which modern road transport excels. On the other hand, rail is the champion of “heavy and long”. In that respect, the rail picture is steady, if not leaping ahead.

Modal shift programme encourages container growth

British rail freight by commodity share Q3 2024. Intermodal maritime is significant, given the size of the contribution.

The overall commodities picture remains unchanged. The big contributors – containers at ports and the all-encompassing “construction materials” are still each responsible for a third of all freight tonnage. While the latter eased off by two percentage points, it is still at record levels. Intermodal maritime however increased by four per cent, year-on-year rising to 1,601 million net tonne-kilometres in the latest quarterly figures.

The Office of Rail and Road notes that rail freight serving the Port of Southampton is contributing to this intermodal growth. They put it down to the DP World Modal Shift Programme incentive package, which has increased rail freight’s share of the market at the port. DP World is paying freight forwarders a cash bonus if they move their boxes inland by rail. “Furthermore, there have been new services, such as between Tilbury and Manchester,” said the ORR, referring to the growth in domestic intermodal. This smaller sector is nonetheless booming, with an eleven per cent increase. In part, a new domestic flow for supermarket giant Tesco helped boost figures (pictured above), along with new scheduled runs from competing rail freight operators. “As the commodity with the largest share of freight moved, it accounted for 38% of all freight moved between July and September 2024.

A shift in the expected commodity pattern

Britain’s house-building shortage is challenging politicians, but citizens are throwing out more trash from the homes already built. That might be a statistical assumption too far, but the relentless growth of aggregates traffic, fuelled by house building, has stalled, at least for a quarter. Instead, Britain is transporting more domestic waste by rail. Does that mean British recycling is on a downward trend? Probably not. Britain is actually producing less domestic waste and is transporting more of that diminished tonnage by rail.

British rail freight totals in Q3 2024 and historical comparison

The domestic waste figures could reflect the growing importance of so-called “energy from waste” operations. Burning non-recyclable domestic waste is big business, and operations like the Severnside Energy Recovery Facility in Avonmouth in Bristol take huge volumes of raw waste – much of it delivered by rail from as far away as west London (as reported by RailFreight.com). Including that commodity, total freight lifted was 18.6 million tonnes in the latest quarter, an increase of 6% compared with the same quarter last year (2023). However, that total freight moved marginally less distance. The overall figure of over four billion net tonne-kilometres in the quarter was up just two per cent.

Biomass and punctuality

There was a large jump in support of the energy generation sector. Biomass volumes leapt ahead by 46%, accounting for 272 million net tonne-kilometres. This was put down to the increasing use of biomass at the huge Drax power station complex in Yorkshire, in the north of England. While there exists some controversy about the description of biomass as a ‘green’ fuel, it is nonetheless a money-spinner for rail freight, with around 17 daily trains operating to the complex.

Construction made up a third of all freight moved in the quarter, representing the second-largest share of all freight moved. Freight volumes in this sector decreased by 2%, falling to 1,407 million net tonne-kilometres. However, this still represents the second-largest value of any quarter since the time series began in April 1998.

Also falling off was punctuality. The proportion of freight trains cancelled or arriving after 15 minutes, 8.3%, on a daily roster of about 600 trains. That’s about 25 trains a day officially behind schedule – which is a reflection of the high-reliability standard to which the railways are held. However, it is 1.1 % worse than the corresponding quarter last year.

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