Rail Freight Prices To Rise

The Office of the Rail Regulator’s (ORR’s) has announced its intention to raise charges for rail freight. The proposed increase could result in up to a 23% rise in tariffs to access tracks, with the transportation of certain commodities, such as spent nuclear fuel, seeing freight specific charges phased in between 2014 and 2019. As a result of this new commodity based charge, power stations, those in the steel sector and others could see a sharp rise in transport costs. The UK Rail Freight Group (RFG) have raised serious concerns over the proposed charges, Maggie Simpson, RFG Executive Director, commented: “The rail freight sector is committed to increasing its efficiency and contributing to a lower cost railway. But significant increases in access charges – such as the potential 23% rise for all traffic – risks de-stabilising the sector and forcing business back to road. We will be pressing ORR and Network Rail to ensure that a more satisfactory position can be reached by the summer.”