INDUSTRY NEWS
RAIL FREIGHT CHARGES TO BETTER REFLECT COSTS - ORR
A new package of charges for freight operators to access the rail network, to be introduced from 2016, will better reflect costs and give businesses certainty to plan for the future, the Office of Rail Regulation (ORR) have announced.
In May 2012, ORR launched a consultation seeking views on charges freight operators must pay to use Britain’s rail network, as part of the regulator’s assessment of what Network Rail must achieve during the five years from 2014 to 2019 (Control Period 5), the money it needs to do so, and the incentives needed to encourage delivery and outperformance. Following extensive input from the rail industry and its customers, ORR will:
Set a maximum cap of £1.68 per 1000 gross tonne kilometre (kgtkm) on the average variable usage charge that freight operators will pay to access the rail network in Control Period 5 (CP5). ORR expects the final charge to be lower than the maximum cap as part of its final assessment for CP5;
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Introduce a new freight specific charge, payable for the haulage of coal for the electricity supply industry (ESI), spent nuclear fuel, and iron ore – all commodities that cannot easily or economically switch to road. For ESI coal, the charge will be capped at a maximum of £4.04 per 1000 gross tonne mile (kgtm); for nuclear fuel the charge will be capped at £11.64 per kgtm; and for iron ore at £2.96 per kgtm; and
Implement the new charges gradually to enable a smooth transition and to enable businesses to plan accordingly. The freight specific charge will not be introduced at all until 2016-17 and will then be phased in gradually over three years so that the full charge will be payable in 2018-19, allowing businesses time to adjust. ORR estimates that on average the overall price increases a customer will pay for the affected products will be between 3% and 5%.
NATIONAL EXPRESS CELEBRATES GERMAN RAIL SUCCESS
National Express Group PLC which operates rail franchise, c2c, has been selected to run two 15 year regional commuter rail contracts in Germany. Three German local authorities confirmed that they intended to award the two contracts which serve cities including Cologne and Bonn in Germany’s most populous region, North Rhine- Westphalia, to National Express. The services are currently run by Deutsche Bahn and carry around 18 million passengers per year. National Express will start operating the 15 year contract in December 2015, after first procuring 36 new electric trains on behalf of the local authorities. The contracts will generate revenues of around €1.6 billion for the 15 years as a whole.
RailCONNECT 09 09
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