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

  • US toll roads stable for 2014, says Fitch
    December 18, 2013
    Within a broader review of US transport infrastructure securities, including ports and airlines, Fitch Rating analysts say the recent slow growth in aggregate traffic is likely to continue but that many established toll roads look financially solid because of their pricing power - tolls that have been well below revenue maximising levels. Their pricing power has been somewhat reduced, Fitch says, by strong increases in toll rates on many toll roads, which mean they have less scope for big increases in to
    Read More
  • ITS market size ‘to reach US$38.68 billion by 2020’
    December 21, 2015
    The global ITS market is expected to reach US$38.68 billion by 2020, according to a new study by Grand View Research. Increasing demand for alleviating traffic congestion and growing need for enhancing existing transportation networks is expected to drive demand over the forecast period. Growing urban population and increased fund allotment by various governments across the globe is driving need for advanced transportation network. This is estimated to be fulfilled by proper use of wireless communication
    Read More
  • Transport and traffic management for major sporting events
    February 2, 2012
    Maurizio Tomassini, Isis, and Monica Giannini, Pluservice, detail the STADIUM project, which is intended to provide those responsible for planning major international events with a blueprint for success
    Read More
  • Technology holds the key to painless parking
    March 21, 2014
    Parking has been the most innovative of all the transportation sectors in the past five years. Richard Harris, Solution Director, Xerox Services outlines some of the key drivers and trends
    Read More

Highlighted Content