Rail Regulator halves freight charges, heralding rail freight renaissance

18 October 2001
ORR/22/01

The Rail Regulator, Tom Winsor, today confirmed that the charges that freight operators pay to Railtrack for use of the network will be halved.

Commenting on his review of freight charging policy, Tom Winsor said:

"These measures make a positive contribution to the Government's objective of achieving a substantial growth in rail freight over ten years, and delivering social and environmental benefits by relieving road congestion and reducing air pollution. This provides the catalyst that rail freight needs for a true renaissance."

This review represents a radical shift from the current negotiation-based approach to an essentially tariff-based approach. It takes account of increased competitive pressures from other transport modes and recent decisions on 44 tonne lorries and vehicle/fuel duty which have given road haulage a competitive edge over rail. The shortfall in Railtrack's revenue from freight operations resulting from this decision, some £500 million over the current control period, will be funded by the Strategic Rail Authority.

Notes for editors:

1. The Regulator published his first consultation document on the review of freight charges in May 2000, Review of freight charging policy: A consultation document, ORR, London.

2. The Regulator set out his emerging views on the freight review in a second document published in August 2000, Review of freight charging policy: Emerging views on key issues, ORR, London.

3. The Regulator published a further consultation document on costs in November 2000, Review of freight charging policy: Consultation on costs, ORR, London.

4. The Regulator published provisional conclusions on the new regime for freight charging in April 2001, Review of freight charging policy: Provisional conclusions, ORR, London.

5. The Regulator's final proposals are published today, on the new regime for freight charging, Review of freight charging policy: Final conclusions, ORR, London.

6. The Regulator's first national survey of rail freight customers in the UK was published in August 2000, National survey of rail freight users: Summary of results, ORR, London.

A copy of the document - Review of freight charging policy : Final conclusions - is available here or from 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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