Gloom over rail grants
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by Karen Miles • Disappointed intermodal operators are this year facing a much smaller increase in railfreight grants than they had expected.
As the Government concludes its review of the grants, insiders say it is likely to go up from 5p per mile to 10 or 15p—but not to the 20-25p which is said to be an essential condition for moving substantial amounts of freight from road to rail.
The Rail Freight Group, which represents rail users, warns that a rise to 15p a mile will not boost Channel Tunnel wagon services, nor will it make financially viable a London-Scotland overnight lorry shuttle service jointly planned by the Transport Development Group, bimodal equipment manufacturer RoadRailer and bulk rail freight operator Transrail. "I don't want to be churlish about it but it certainly looks like we're going to get a gesture from the Department of Transport rather than a real commitment," says RFG director Julia Clarke.
In the summer the DOT admitted that the 5p rate was too low to attract freight off the roads, and after it asked the National Audit Office to study the grants scheme, there were hopes of a big rise.
Last year the DOT allocated around £14m for capital and track access grants to entice freight on to the railways, but only around £2m was spent. Users say this is because the system is too inflexible and lengthy.