New Group to Accelerate Transfer of Freight from Road to Rail

A new special interest group has been launched to accelerate the transfer of long-distance freight from road to rail.

Railfreight Interchange Investment Group (RIIG) is being headed by four leading UK developers to promote greater investment in railfreight interchanges and a more consistent planning policy that recognises their importance to the economy.

The lead developers in RIIG are:

• BAA Lynton (the property arm of the airports group BAA);

• Burford Group;

• Helios Properties and

• Prologis.

The group is supported by other companies in the property and freight industries including several major occupiers.

The aim of the group is two-fold:

• To promote the investment, employment and environmental benefits of railfreight interchanges, delivering the success of such developments across mainland Europe;

• To seek a more constructive approach by Government planning policy towards railfreight interchanges, to maximise the benefits to UK plc

Mike Hughes, Chairman of RIIG and a Director of Helios Properties, said:

"The transfer of freight from road to rail is supported by the public, industry and Government alike. But in order to achieve its own 80% growth target for railfreight over the next decade, Government recognises that new interchanges will be required, where freight can be transferred between trains, trucks and warehouses.

"The success of these 'freight villages' is proven in continental Europe, where some handle more railfreight in a year than passes through the Channel Tunnel - each taking up to half a million lorry trips off the roads. European examples accommodate up to 100 companies and 2,000 employees on site, and provide focal points for wider regional regeneration, investment and employment of up to 25,000 people.

"We are prepared to commit the necessary investment in developing similar interchanges on the UK rail network - industry sources suggest the current proposals alone amount to £2bn of investment - but not if this investment is then wasted on abortive schemes and drawn-out planning inquiries. The current planning process is frustrating these efforts and the opportunities which could be created. We have therefore created this new group to focus on these issues and promote a balanced debate to issues and solutions.

Mr Hughes added: "We want to help Government and industry switch significantly more freight from road to rail, so reducing road traffic growth and its environmental consequences. This would help the development of regional economies, and creation of local jobs. The companies we represent are planning to commit major private-sector investment into the rail network, through new rail freight interchanges. In return, Government needs to stand by its policies on rail freight growth and interchange development."

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Notes:

1. Further information and press contact via RIIG secretariat, telephone 01825 841103, fax 01825 841049 Website: www.riig.org, email: info@riig.org

2. Strategic Rail Authority published documents state: "Rail freight demand forecasts show that non-bulk traffic will grow significantly. This traffic includes general distribution and consumer goods, the customers for which are rarely directly connected to the railway. To support development of rail in the general freight market, a small number of large new interchanges will be required."

3. Department for Transport published documents state: "The performance of these 'hubs' in our distribution networks is vital both to promoting greater use of inland intermodal freight, and in maintaining efficient trading links. Therefore our economy needs a clear, national policy framework within which the future development of our major freight interchanges can be planned and considered."

4. RIIG chairman Mike Hughes has recently addressed 'The 11th Annual Rail Freight conference' on 4 June at London's Marriott Hotel and is due to speak at the 'Developing Rail Freight Terminals: Life after LIFE' conference at Radisson SAS Portman Road, London on 8 July.

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