A Network Rail report casts new light on the capacity of major passenger stations to handle light logistics. A broader return to handling less than wagon load and parcels traffic has been on the agenda for some time. The concept has gained traction since the pandemic, and there is an impetus to fill the capacity abandoned by commuter traffic. The report is a concerted effort to identify broader opportunities.
Looking at almost all of the twenty major stations directly managed by the infrastructure agency, the report, subtitled “a capability review for express freight and urban logistics”, is the first comprehensive network examination. It looks for modern, fit for purpose opportunities for the rail industry to recapture a market for door-to-door delivery. That once-lucrative revenue stream was surrendered en-masse in the last decade of the twentieth century. The conclusions are encouraging for the would-be players seeking to enter the market.
Space at passenger terminals
Like vinyl records, light logistics never really died out. Rather like their music counterparts, parcels by rail has become a high-end, premium niche, serving discerning connoisseurs rather than the high-volume, low-margin mass market. The huge growth in passenger traffic over the past twenty years has hampered entry back into that arena, squeezing handling capacity out of the network. However, with the recovery in passenger numbers giving cause for long-term concern, Network Rail has begun a serious look at filling that gap with new revenue streams.
Established bespoke operators like InterCity RailFreight have been promoting the idea of using space at passenger terminals for some time and have been successfully operating there, almost unnoticed, for years. Network Rail has been examining a rather more conspicuous return to operations. Despite some disappointments with recent light logistics trials, there is optimism and commitment from operators eager to enter the market.