Rail Freight

Lord Hendy of Richmond Hill Excerpts

Monday 13th April 2026 Lords Chamber

[Lord Moylan]

To ask His Majesty’s Government what progress they have made towards achieving their target to increase rail freight volumes by 75 per cent by 2050.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, this Government have a clear ambition for rail freight growth, with a target of 75% by 2050, and we continue to work collaboratively with freight operators and Network Rail. My department’s modal shift revenue support programme and Network Rail’s access charges discount policy have been hugely successful, awarding £39 million over two years to eight freight operators and supporting 19 new flows. We continue to progress the Railways Bill, which will enable GBR to further support rail freight growth with the first ever statutory target for growth.

[Lord Moylan (Con)]

My Lords, it is encouraging to hear the Minister repeat the Government’s commitment to that target, which they inherited, of course, from the previous Government and which we support. However, the rail freight industry is, I think, finding it increasingly unconvincing, because the Government have refused, so far at least, to put this target into the Bill which is currently in the other place. They are leaving it, in effect, to the discretion of Great British Railways, which will of course be in competition with the freight operators for the very same paths on the railway. Would the Government not like to strengthen this target by making it part of the statutory obligation imposed upon Great British Railways in the Bill?

[Lord Hendy of Richmond Hill (Lab)]

The Government have been quite clear that setting a statutory target is in the Bill, and we have also been clear that it is 75%. In practice, that protects those freight paths that have been in the timetable for a long time but are not necessarily used other than at short notice. That is the reason for the proposed statutory inclusion in the Bill. For that reason, GBR will not be in competition for those paths. Those paths will have to be reserved in order to allow the target to be effective in the future.

[Lord Berkeley (Lab)]

My Lords, my noble friend the Minister mentioned the issue of competition for rail freight. I am pleased to hear him say that the Government are keen to grow rail freight, but it is difficult to see, in the text of the Bill, how Great British Railways, which will have control of most passenger services as well as access to the track, will be able to treat fairly open access passenger operators and rail freight operators. Is this something on which the Government have consulted the Competition and Markets Authority to see whether there is any potential for conflicts of interest?

[Lord Hendy of Richmond Hill (Lab)]

The Railways Bill is framed to give Great British Railways the authority, for the first time in over 30 years, to control access to the railway and make sure that it is fairly distributed and serves the nation’s economic and social purposes. That is in Clause 60. Clause 63 talks about GBR operating passenger services. The reason that the freight target is specified in the Bill is so that GBR will have the obligation to leave both freight paths that are used in the timetable for freight trains and those paths that are not used but will be needed for the expansion of freight services and are needed at short notice to be used by freight operators.

[Baroness Pidgeon (LD)]

My Lords, what consideration are the Government giving to increasing the capacity at London Gateway, Britain’s second largest container port, by the electrification of just three miles of track to the port, which would allow for the use of faster electric locomotives for freight?

[Lord Hendy of Richmond Hill (Lab)]

I am glad that the noble Baroness asked me that question. Network Rail has found some money to do studies on greater access to London Gateway, and that is the right thing to do. The question of electrification is one of the subjects that we need to discuss with the port’s owners, DP World. The other subject is the level crossings, which are probably a greater barrier to more freight trains there. I have recently written to the local district council about this, and my department is looking to have a meeting with DP World, Network Rail and the freight operators to decide how best to take that forward.

[Lord Redwood (Con)]

My Lords, will the Government speed up digital signalling and proper traffic information in the cab so that there can be more slots for all types of rail traffic, because obviously we want to expand rather more than the Government are suggesting in the short term?

[Lord Hendy of Richmond Hill (Lab)]

How right the noble Lord is. The digital signalling programme for the east coast main line does absolutely as he describes, which is to give more capacity on the existing track. It is in train, as far as I know; it is on target and on budget for the south end of the east coast main line. It is subscribed to by all the operators, including all the freight operators that use it. One of its principal objectives is to get more train paths out of the same railway.

[Viscount Thurso (LD)]

My Lords, does the Minister agree that, if we are to get a substantial move of freight on to the railways, we need to move to palletisation as opposed to containerisation as the principal unit that is used, and that to do that we need to construct proper freight villages in order to have the transfer that is necessary, and that without those infrastructure improvements we will not get to the target?

[Lord Hendy of Richmond Hill (Lab)]

It was a privilege for me to open the ninth Maritime Transport rail freight hub in Northampton about six weeks ago. I had a long discussion with John Williams, the chief executive, and we discussed precisely that. We were discussing how we should measure this, because tonnage is maybe not the best way of measuring container loads—in fact, the numbers of containers might be a better method of doing it, if we could find a way. The Government are very active in this, as am I personally. It is clear that intermodal container traffic, and indeed national container traffic, is the largest growth feature of this market and we should do everything we can to encourage it.

[Baroness McIntosh of Pickering (Con)]

My Lords, the Minister will be aware that there are a number of existing barriers to rail freight, particularly between East Anglia, the port of Felixstowe, north Yorkshire and the rest of the north of England. One of the barriers is the urgent upgrade needed to Haughley junction. Does the Minister have a timetable for when that upgrade will be made?

[Lord Hendy of Richmond Hill (Lab)]

There is no use upgrading Haughley junction without upgrading Ely. Previous Governments have not found the money to do that and, regrettably, in the financial circumstances that this Government find themselves, we have not so far found it either. But I have had some useful discussions with local Members of Parliament and the combined authority mayor of Cambridgeshire and Peterborough about what we can do both to improve the business case for Haughley and Ely junctions and to reduce the cost. One of the crippling costs of that upgrade is the number of level crossings needed because East Anglia is very flat; there may be some things that local highway authorities can do which would make that project easier to do and give it a better business case in the future.

[Lord Faulkner of Worcester (Lab)]

My Lords, does my noble friend agree that one of the secrets of growing rail freight is to increase the versatility of freight locomotives? In that context, will he welcome the development of tri-mode freight locomotives—electric, battery or diesel—so that they are able to run anywhere in the country?

[Lord Hendy of Richmond Hill (Lab)]

My noble friend clearly knows a lot about it—probably more than I do—but I was at the launch of the Class 99 locomotives last autumn, which I think are the ones he is referring to. There are 30 being leased and operated through GB Railfreight, and he is right that they will be versatile to run anywhere. In fact, that may solve the issue at London Gateway port that the noble Baroness, Lady Pidgeon, referred to, because if there were battery-electric locomotives then we would not need fixed electrification. It is right that the rail freight fleet needs to be updated. That investment is very welcome, and I expect it to be followed by investment by the other freight operators which believe that there is a long-term future in freight on the railway.