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Rail freight to stay private under Labour plans

[ April 25, 2024   //   ]

Freight services will not be included in a plan by the Labour Party to renationalise rail services within five years if it wins the next election.

Under the plans a new body, Great British Railways (GBR), would take over passenger service contracts from private firms as they expire but the scheme would not include freight services operated by companies including DB Schenker, Freightliner, DRS and GB Railfreight.

In response, Logistics UK senior policy advisor, Ellis Shelton, said: “Logistics UK welcomes the Labour Party’s support for rail freight and recognition of the significant contribution it makes to the UK economy and role it can play in reducing carbon emissions. We will examine the suggestions in detail, but it is important that any proposals for increasing rail freight are supported by appropriate incentives and policies, including the creation of a national freight network with rail playing a key part in it, support for the establishment of rail freight terminals, and a commitment to electrify the entire rail network.”

Freightliner said it welcomed the vision for rail announced by Labour as itrecognised the importance of harnessing the potential of the sector in delivering environmental and economic benefits. The commitment to grow the size of the freight sector and ensure that the future Great British Railways has a legal duty to support growth was particularly welcome. 

GB Railfreight chief executive, John Smith, added: “We welcome Labour’s plans to seize the huge economic potential of rail freight – an industry which already contributes £2.45 billion to the UK economy.

“Rail freight helps to deliver millions of items to consumers across the UK each year, from pinot grigio to paracetamol, all the while helping to reduce road congestion and carbon emissions.

“We look forward to the opportunities Labour’s plans may present to our industry in the future.”

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