Rail freight sector debates Brexit

2nd May 2017

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Brexit provides a welcome opportunity to make the case for increased use of the railways to move freight but uncertainty remains over how it will affect demand for goods.
 
The Rail Freight Group’s annual conference last week included a debate on Britain’s forthcoming exit from the European Union.
 
“As a result of Brexit the Government is placing an almost unprecedented focus on trade links at the moment and that ought to open up opportunities for our sector,” Rail Freight Group executive director Maggie Simpson told delegates.
 
“The issue for Government is not just what we trade and who we trade with post-Brexit, but also how we then move those goods.” Benefits of rail freight are said to include cutting road congestion and reducing air pollution.
 
Maggie Smith added that current efforts to develop Government’s Industrial Strategy, Control Period 6 for rail and the second Road Investment Strategy represent opportunities to make the case for increased use of rail freight.
 
However Rail Delivery Group head of European policy Laura Wright pointed out: “We need to see a strong economy to support continued demand for rail freight and to ensure the economic effects of Brexit do not affect freight demand.”
 
Economic consultant Oxera’s head of transport Andrew Meaney predicted that Brexit will have a slow but significant impact on the UK’s economy that could lead to people consuming less goods.
 
“Any direct impact on GDP and employment will stop people buying as many goods as they are at the moment, and for those moving goods around the country that will eventually have an effect,” he said.
 
Laura Wright added that sustained investment in the rail industry is needed and warned that the impact of any changes to border controls on already capacity constrained rail freight paths will have to be considered carefully.
 
(Photo: Network Rail)
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