GOVERNMENT DERAILS RAIL FREIGHT HOPES

The UK Government is suspending 312m worth of funding from the Strategic Rail Authority's grants budget over the next three years. The decision will have major repercussions for those truck operators applying for either Freight Facilities Grants which help offset the capital cost of providing rail-freight handling facilities for either new or existing schemes, or Track Access Grants which help goods service operators to meet the charges paid to Network Rail (formerly Railtrack). It is suggested that the change will preclude the 80% increase in rail freight planned in the Government's 10-year Transport Plan. However the Government may intend to stop or slow rail freight growth because of overcrowding on the rail network. The knock-on effects for road congestion are considered.