Skip to main content

FTA concerned over ORR track charges proposal

Responding to the announcement by the Office of Rail Regulation (ORR) regarding its decision of the change to track access charges for 2014-2019, the FTA has said that “there is still the need for better understanding of the rail freight market and the expectations of existing and potential new customers”, and believes that the ORR's final determination which will increase freight rates by 21 per cent over the control period, four per cent per year will be a major set-back for promoting future growth for th
November 1, 2013 Read time: 2 mins
Responding to the announcement by the Office of Rail Regulation (ORR) regarding its decision of the change to track access charges for 2014-2019, the FTA has said that “there is still the need for better understanding of the rail freight market and the expectations of existing and potential new customers”, and believes that the ORR's final determination which will increase freight rates by 21 per cent over the control period, four per cent per year will be a major set-back for promoting future growth for the sector if this is passed through in full to end users”.

Previously FTA had voiced its concerns to the ORR over the proposed higher track access charges stating that this could lead to intermodal and retail traffic being pushed back off rail and onto roads.

In reply the ORR appears to have listened and responded to the Association’s and industry’s serious concerns which were expressed during the consultation process, and capped the proposed increases below that initially intended, thereby reducing the impact of the new charging regime.

Chris MacRae, FTA rail freight policy manager, said: ““FTA is pleased that ORR appears to have listened to our concerns regarding the impact the proposed charges could have on the freight industry, but it cannot be assumed that existing traffic will simply stay on rail.”

Related Content

  • Electric vehicle charging stations market
    April 7, 2016
    The growing need to reduce carbon emissions is pushing electric vehicle (EV) charging stations market along with increasing use of EVs, government subsidies and incentives according to a new research report from Reports and Reports. It forecasts the market to reach US$12.61 billion by 2022, at a CAGR of 29.8 per cent from 2016 to 2022. The growth of electric vehicle charging stations market is attributed to significant incentives offered by the Chinese government for EV buyers and tightening emission reg
  • Demand management schemes, is there a better way?
    January 31, 2012
    The European Commission is placing too much emphasis on the use of demand management, according to the FIA. Here, Wil Botman, Director-General of the FIA's European Bureau, explains why. Towards the end of last year, the European Bureau of the Fédération Internationale de l'Automobile (FIA) released a statement which criticised the European Commission's (EC's) approach to urban traffic congestion following the adoption of the Action Plan on Urban Mobility. In particular, the FIA voiced concerns over what it
  • World ITS market expected to grow at a steady rate to 2020
    August 4, 2014
    The global market for intelligent transportation systems (ITS) is expected to reach US$38.68 billion by 2020, according to a new study by Grand View Research. Growing demand for optimising fuel consumption and reducing emissions is expected to be the key driving force for the market. ITS aids in reducing incidents such as road accidents and boost safety, which is estimated to positively impact demand over the next six years.
  • Global ITS market expected to reach US$38.7 billion by 2020
    March 24, 2014
    The global market for intelligent transportation systems is expected to reach US$38.7 billion by 2020, according to a new study by Grand View Research. Growing demand for optimising fuel consumption and reducing emissions is expected to be the key driving force for the market. ITS aids in reducing incidents such as road accidents and boost safety, which is estimated to positively impact demand over the next six years. Increasing need for enhancing existing transportation networks coupled with demand for