Regulator reduces freight charges by 50% to win freight to rail

5 April 2001
ORR/11/01

The Rail Regulator, Tom Winsor, has announced a significant contribution to the Government's objective of achieving an 80% growth in rail freight traffic by 2010, by halving the access charges freight operators pay to Railtrack for use of its network. The Regulator's provisional conclusions on the new regime for Railtrack's access charges to freight operators, published today, provide the necessary conditions for the strong and sustainable growth in rail freight.

Commenting on his proposals for freight charges, Tom Winsor said:

"My new regime brings an essential transparency to freight access charges. No longer will freight operators have to negotiate with Railtrack in the dark, with unpredictable outcomes and uncertainty about the quality of the deal they have been able to get. Under these proposals, Railtrack's costs and charges for freight traffic will be published and so will enable operators, potential operators and their customers to see what they are. This will bring about a much needed levelling of the playing field between freight operators.

"My proposals give Railtrack an incentive to grow the volume of freight traffic on its network. They also effect a very substantial reduction in freight access charges from current levels. The reduction in charges does not affect Railtrack because the lower revenues will be made up by higher subventions from public funds. At the least, this change is cost-neutral to Railtrack, and it has the upside of higher freight volumes and therefore higher revenues in the longer term. It is therefore good news for Railtrack."

Notes for editors:

The following documents can mostly be reached from our Freight index page

1. The Regulator published his first consultation document on the review of freight charges in May 2000.Review of freight charging policy ORR, London.
2. The Regulator set out his emerging views on the freight review in a second consultation document published in August 2000. Review of freight charging policy: emerging views on key issues. ORR, London.
3. The Regulator published his final conclusions on the periodic review of Railtrack's access charges in October 2000. The periodic review of Railtrack's access charges:final conclusions, volumes I and II. ORR, London.
4. The Regulator published provisional conclusions on freight charging policy in November 2000. Review of freight charging policy: consultation on costs, ORR, London.
5. The Regulator's provisional conclusions, published today, on the new regime for freight charging Review of freight charging policy - provisional conclusions. ORR, London, April 2001.
6. The Regulator's first national survey of rail freight customers in the UK was published in August 2000. The national survey of rail freight users - summary of results, ORR, London.

These documents are available from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045, e-mail: rail.library@orr.gsi.gov.uk.

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