Archived decisions

Contact: Michael Hedderly, ext 5492 email: [email protected]

1. Summary

1.1 This report informs Members of the latest position regarding the prospects for further development of rail freight in the county and the constraints which are preventing capacity increases.

2. Corporate Strategy

2.1 This report supports Aims 2 and 3 (Stewardship of the Environment and Achieving Economic Prosperity) of the Corporate Strategy by advocating measures which will lead to a reduction in lorry journeys and greater use of the rail network for freight movements.

3. Rail Freight Issues

3.1 There are currently three live issues concerning rail freight in Hampshire:

(i) gauge enhancement for 9ft 6in containers between Southampton and the West Midlands;

(ii) possible development by English, Welsh and Scottish railway (EWS) of an intermodal terminal on part of the former Alstom site at Eastleigh; and

(iii) use of rail for certain flows to and from the Onyx MRF facility at Holybourne.

4. Gauge Enhancement

4.1 In its Freight Strategy published in 2001 the Strategic Rail Authority (SRA) recognised the requirement for an enhanced loading gauge (the `train kinetic envelope') - designated W12 - on the network and particularly on the routes to ports. This was deemed necessary to accommodate the growing number of 9ft 6in containers (known as `Hicubes') on standard deck height flat wagons designed for the former standard 8ft 6in high units and would thereby obviate the need for specialised rolling stock. The SRA reasoned that unless the network infrastructure was enhanced accordingly, existing inter-modal flows would be lost to rail as customers switched to Hicubes, which would have to be conveyed by lorries with the consequential impact on Hampshire's roads and environment.

4.2 The key port-connected routes were to link Felixstowe and Southampton to the core network enabling through operation to the Midlands, the North and Scotland. The Felixstowe scheme was completed in 2004 and funded by the SRA. The Southampton scheme, although approved by the SRA (even without the additional traffic levels which Dibden Bay would have contributed), has been approved but its implementation is stalled due to lack of funding. The new Rail Group within the Department for Transport has taken over the strategic planning function from the now defunct SRA, but the situation vis-à-vis gauge enhancement is unchanged.

4.3 Not only does this continue to put the Port of Southampton at a competitive disadvantage compared to Felixstowe, but it could lead to freight being redirected through Rotterdam and Antwerp which would gain business at Southampton's expense; this could also adversely affect the region's economy.

4.4 There is a trend towards the greater use of longer (40ft) containers through Southampton - increasing from 66% to 77% by 2011. Partly this is due to customers maximising available capacity but also because no new 8ft 6in high containers are being constructed; therefore when they reach the end of their productive life after 10 years they will be replaced by Hicubes.

4.5 The effect of these changes over time is that whereas 29% of Southampton's current throughput (import and export) of 928,000 containers is in Hicubes, by 2011 Hicubes will represent an estimated 46% of the projected throughput of 1,316,000 boxes.

4.6 If it is unable to offer rail transits for this growing section of the market, Southampton's ability to attract business (compared with other ports) will be compromised and containers will be moved in increasing numbers by road. Thus the road network will be more heavily congested. Every full container train means about 70 fewer lorries on the road.

4.7 Recognising that the economic prosperity of the region is dependent on the continued success of Southampton's port, the County Council last year joined with representations from the Hampshire Economic Partnership, Southampton City Council and Southampton MPs to the Minister for Transport asking for the gauge enhancement, the cost having come down to around £50 million, to go ahead without delay.

4.8 The County Council has also supported representations to the Government from the train operators, Freightliner (the dominant player in serving the port) and EWS.

4.9 More recently, officers from the County Council have been involved with Southampton City Council, ABP, Southampton Container Terminal and Freightliner in setting up a sub-group specifically to develop the case for the upgraded infrastructure. The sub-group will also seek the active support of SEERA and SEEDA and local authorities further north on the A34 in continuing to press Government for a positive decision.

4.10 The gauge enhancement scheme has recently been the subject of a joint bid by Southampton City Council and Hampshire County Council for funding as part of the Government's Transport Innovation Fund. On 16 September 2005 a meeting was held with the Department for Transport to discuss this bid. The Government's representative was receptive to the notion of the TIF being used to support an initiative such as this, which would have national strategic benefit.

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5. Possible Development by English, Welsh and Scottish Railway of an Intermodal Terminal on part of the former Alstom site at Eastleigh

5.1 In the context of the Chickenhall Lane Link Road scheme in Eastleigh and a possible Eastleigh chord rail line (to enable trains to run through from the Botley line towards Southampton Airport Parkway without reversing), joint discussions have been held recently by County Council and Eastleigh Borough Council officers with representatives of EWS with a view to understanding the freight company's aspirations for the Eastleigh rail complex, including the site of the Alstom rail works.

5.2 It was learned that EWS is keen to establish an intermodal terminal for handling containers to and from Southampton Docks. It has not been possible for EWS to share Freightliner's facilities at either of the two container terminals in the Millbrook area. Discussions with ABP over siting a terminal within the docks had foundered on grounds of cost and EWS was therefore looking at the possibility of developing a terminal at Eastleigh, including part of the Alstom site, where containers would arrive by lorry from the docks to be loaded onto rail wagons. Despite the double-handling inherent in this method of working, EWS considers this to be the most economical solution from its point of view and the company proposes to develop the concept further. The environmental impact would be assessed at the appropriate time, when the company's plans become further developed.

6. Use of Rail for Certain Flows to and from the Onyx Mineral Recycling facility (MRF) at Holybourne

6.1 Currently all materials going into and out of the MRF facility at Holybourne are carried by road. However it is known that certain flows of waste paper products could be carried by rail between Holybourne and Shotton (near Chester).

6.2 EWS, which already serves the oil siding at Holybourne on a daily basis, has been looking at the possibility of developing a movement plan and, if successful, quoting for this particular flow. In the longer term, if a viable rail flow can be established, a private siding might be installed, but in the meantime EWS could seek agreement with Star Oils for use of its adjacent siding.

6.3 There are infrastructure considerations affecting the operation of the Alton passenger trains over the single line between Bentley and Alton which also need to be addressed. Installation of a loop or partial redoubling of the line would assist punctuality and performance of the Alton train service by insulating the passenger trains from the adverse effects of freight movements serving Holybourne. These issues are being taken forward with Network Rail and South West Trains in the context of infrastructure enhancements desirable to improve reliability of the Alton line passenger trains.

7. Impact Assessments

7.1 This report provides a position statement only, therefore an impact assessment in terms of the Race Relations (Amendment) Act has not been undertaken. Where a new terminal is proposed (as referred to in 5.2) an impact assessment would be carried out as part of the pre-consultation process were the proposal to be implemented.

Recommendation

That this report be noted.

516/MH