Q1: Do you agree with the overall forecasts for rail freight growth in Great Britain?

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1 FREIGHT MARKET STUDY DRAFT FOR CONSULTATION: LIVERPOOL CITY REGION COMMENTS This response is written on behalf of the Liverpool City Region partners and represents the views of the six Local Authorities (Liverpool City Council, Sefton Council, Wirral Council, Knowsley Council, St Helens Council and Halton Council), Merseytravel, Liverpool Chamber of Commerce, St Helens Chamber of Commerce, and the Liverpool City Region Local Enterprise Partnership. Q1: Do you agree with the overall forecasts for rail freight growth in Great Britain? No comments Q2: Do you agree with the individual market sector forecasts in Great Britain? It is noted that the forecasts used by Network Rail differ in some areas from those produced by MDS Transmodal in their GB Freight Model. Appendix 1 of the Freight Market Study does not explain why Network Rail has chosen to do this, how it has derived the revised figures or why lower figures have been used for the Ports intermodal and Domestic intermodal sectors. We ask for further clarification on this, as we are concerned that the reduction in forecast demand for the Port Intermodal Sector does not take into account the transformational change likely to occur at the Port of Liverpool following the opening of Liverpool 2 container terminal from 2015 and the potential for a gradual build-up of container trains from the port to a national catchment in the years after Q3: Do you have any plans which will influence the demand for rail freight movements? The following freight generators and aspirations are likely to affect rail freight demand in the Liverpool City Region and surrounding areas in the future. As a result, we would like to raise Network Rail s awareness of these, so that it can take them into account as part of its long term planning process. LIVERPOOL SUPERPORT The Liverpool SuperPort initiative has been developed by a private sector-led Committee, including representatives from Peel, Stobart, Mersey Maritime, local authorities and Liverpool City Region Local Enterprise Partnership. SuperPort is one of the four main priorities of the Liverpool City Region Local Enterprise Partnership alongside the Low Carbon Economy, Visitor Economy and the Knowledge Economy. Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 1

2 The vision for SuperPort is to bring together and integrate the strengths of the Ports, Airport and Freight Community to create a SuperPort' for freight and passenger operations within the Liverpool City Region that will become a key driver of its economy. It will create the most effective and cost efficient environment for freight cargo logistics and passenger transit in the UK. It is also a major element of the Atlantic Gateway initiative (website ). SuperPort aims to develop both the infrastructure and the skills base within the City Region to enable the above vision. The main infrastructure projects are: "Liverpool 2" Deep Water In-River Post Panamax Container Terminal at Seaforth; for further details see website Port Centric Logistics 3MG Mersey Multi Modal Gateway, Widnes Mersey Gateway Bridge Liverpool John Lennon Airport Expansion Manchester Ship Canal port terminal enhancements For more information: Peel Ports Mersey have aspirations to extend the existing rail link to Seaforth to serve the new Liverpool 2 in-river post Panamax container terminal. They are looking at the potential to reinstate both the Canada Dock rail link and the Birkenhead Docks rail link to the Port of Liverpool. They also have aspirations to reinstate, or create, rail links to its current and proposed port terminals, along the Manchester Ship Canal, such as Port Wirral (Eastham Docks), Port Ince, Port Bridgewater, Port Warrington and Port Salford. Peel Ports are committed to developing rail as part of a multi-modal logistics offer and they are planning for significant growth in rail freight in and out of the Port. There are also plans by Stobart Group to reinstate the rail access to the Mersey Gateway Port at Runcorn. These, if implemented, will offer further potential for increased rail freight in the future. CONTAINERS: Port of Liverpool No container trains currently operate from the Seaforth Rail Freight Terminal at Royal Seaforth Dock in the Port of Liverpool, but they have the potential to return, with introduction of the new Liverpool 2 in-river post-panamax container terminal at Seaforth, due to open in The new Liverpool 2 is intended to have a transformational effect, and result in container trains from the Port of Liverpool to destinations across the country. From 2015, the Port of Liverpool will have the ability to serve a national catchment, similar to that of the South East container ports. Details of the expected level of demand for container freight trains are only just emerging from Peel Ports, but it will introduce a significant new element of demand Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 2

3 for rail freight movements, between the Liverpool City Region and the rest of the country. Further detail on the level of demand for train pathways for container traffic is being prepared by Peel Ports and will be included in their response to the Freight Market Study. Garston Freightliner Terminal The Garston Freightliner Terminal opened in It is a very attractive rail freight site, with electrified, direct access onto the West Coast Main Line and good road access, ideally located for multimodal freight logistics. There are currently 4 daily container train services to and from Garston, operated by Freightliner. These trains run to Coatbridge and from Southampton, Tilbury Docks and Felixstowe. They link with container shipping services from around the world operated by various shipping lines calling at Southampton, Tilbury and Felixstowe. Coatbridge Freightliner Terminal is located in Lanarkshire in Scotland and whilst not a seaport, it is a major rail freight distribution hub for Central Scotland. The Coatbridge service operated out of Seaforth Rail Freight Terminal in the Port of Liverpool until 2008, but now operates out of Garston Freightliner Terminal. On Saturdays there is an individual service to South Wales International Freightliner Rail Terminal (SWIFT) in Cardiff, returning on the following Monday, giving a total of 20 weekly services and one weekend service. We understand that Freightliner plan to continue their operations in Garston and may wish to expand in the future. 3MG Widnes 3MG Mersey Multi Modal Gateway in Widnes is one of the major intermodal terminals in the Liverpool City Region and handles around 160,000 containers per year, of which 80,000 are by rail. It is another very attractive rail freight site with direct access onto the West Coast Main Line and excellent road access, ideally located for multimodal freight logistics, although the short section of line into the terminal has not been electrified. Freight trains are operated to the terminal by Freightliner. Frequent container trains are operated to Widnes from various seaports including Southampton and Felixstowe. These trains link with container shipping services from around the world. Expansion of the rail terminal is planned in phases, with the creation of one new 630m long reception siding and one shorter bespoke siding linked into the major distribution site at 3MG in phase 1. This will allow more trains per day to be accepted; currently there are only 5 trains per day. Completion is planned for There is clearly considerable scope for expansion of rail freight into 3MG in the future. It is understood that further details on the potential for 3MG will be included in Stobart s response to the Freight Market Study. Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 3

4 COAL / BIOMASS: There are regular coal trains taking imported coal from the Eon Bulk Terminal at Gladstone Dock, in the Port of Liverpool, to Fiddlers Ferry, Ratcliffe-on-Soar and Rugeley Power Stations. The major sources overseas of this imported coal are Australia, South Africa and South America. These trains are operated by DB Schenker Rail (UK). Imported coal is transhipped by coastal vessels from Hunterston Bulk Terminal (Clydeport) near Fairlie on the Firth of Clyde to Ellesmere Port for onward transfer by rail. Coal trains taking coal from the Coal Terminal at Manisty Wharf in Ellesmere Port to Fiddlers Ferry Power Station operate on an as required basis. These trains are operated by Freightliner Heavy Haul. This traffic to the Port of Liverpool and Ellesmere Port is likely to diminish in the future, depending on Government national energy policy, as coal fired power stations are decommissioned or converted to biomass. It is anticipated that this declining coal traffic has the potential to be more than replaced by biomass traffic. In late 2012 new biomass trains started from the Port of Liverpool and Ellesmere Port Docks to Ironbridge Power Station. Peel Ports have identified biomass as one of the major growth areas in rail freight demand in the next few years. It is expected to be a rapidly growing market and will constitute a significant demand for freight rail capacity in the future. Further detail on the level of demand for train pathways for biomass traffic is being prepared by Peel Ports and will be included in their response. 3MG has planning consent for a new Biomass Facility which could be constructed in DOMESTIC WASTE: Knowsley Industrial Park, Kirkby No freight trains currently operate from Potter Logistics Kirkby Rail Freight Terminal at the Knowsley Industrial Park. The site is less well located than other local terminals, with access to the rail network from the Kirkby to Wigan line, which is only W6 loading gauge. Potter Logistics are undertaking a programme to expand the facilities at its three rail terminals in the UK, at Selby, Ely and Knowsley. This will result in extended rail sidings in order that it can handle 750m freight trains. As part of this work, the loading gauge on the Kirkby to Wigan line is proposed for upgrade to W9 loading gauge. In December 2011, SITA UK received planning permission to develop a rail loading waste transfer station at Knowsley Industrial Park, at the Potter Logistics rail freight terminal. Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 4

5 In April 2013 it was announced by the Merseyside Waste & Recycling Authority that SITA UK were the successful party for their 30 year resource recovery contract. This will facilitate SITA UK s proposed rail freight terminal at the Potter Logistics site in Kirkby, so that up to 500,000 tons of residual waste per annum can be transported by rail to the new Wilton 11 Energy from Waste plant in Teesside, which is being developed by Sembcorp Utilities UK in partnership with SITA UK. It is anticipated that both facilities, at Kirkby and Teesside, will be operational by 2016, with two trains per day operating from Kirkby to Teesside. INEOS ChlorVinyls Runcorn INEOS ChlorVinyls is constructing its Energy from Waste Combined Heat and Power (CHP) plant at Weston Point, Runcorn. This plant is a key component of its contract with Greater Manchester Waste Disposal Authority. Under the contract, Viridor Laing (Greater Manchester) Limited (a partnership between Viridor and John Laing plc) will manage the 1.3 million tonnes of municipal waste, generated by Greater Manchester each year through integrated waste management solutions including recycling services, composting, mechanical biological treatment and anaerobic digestion. The Solid Recovered Fuel (SRF) produced from municipal waste that cannot be recycled will be supplied to the Energy from Waste CHP plant at Runcorn, which will produce heat and power for the neighbouring INEOS chemical manufacturing operations at their Runcorn site. In due course it is anticipated that further contracts for SRF can be secured from other waste disposal authorities in the North West region. Construction of the plant is due to finish in late 2013, and the plant scheduled to begin providing heat and power to INEOS at their Runcorn site in The capacity of the Energy from Waste CHP plant upon full completion is expected to be 850,000 tonnes of SRF, which will generate around 100MW of electricity and heat equivalent to around 20% of the Runcorn site's total energy demand. The SRF is to be moved by rail from waste treatment sites in Manchester, Salford, Stockport and Oldham in Greater Manchester to the CHP plant in Runcorn. Freight trains will be operated by Freightliner Heavy Haul on an as required basis. Others: Additionally there are a number of other energy from waste plants proposed in the Liverpool City Region which may attract rail freight flows in the future, including various proposals at Ince Resource Recovery Park. AUTOMOTIVE: The Liverpool City Region has two automotive rail freight terminals at Speke and Halewood, which support the strong and vibrant automotive cluster in South Liverpool and Knowsley. Peel Ports have aspirations to develop the automotive sector at the Port, and would mainly use rail for transport. Further detail on the level Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 5

6 of demand for train pathways for the automotive sector is being prepared by Peel Ports and will be included in their response. It was announced recently that Briggs Automotive are relocating their car plant from Cheshire to a site on the Speke Hall Industrial Estate in South Liverpool, which will strengthen the automotive cluster there. There are also important automotive manufacturing sites in areas adjoining the Liverpool City Region; Vauxhall Motors in Ellesmere Port, Bentley Motors in Crewe, Leyland Trucks in Lancashire and Toyota s engine plant in Deeside. Developments at the Port of Liverpool may give scope for more cars to be exported through the port in future, with new and changed rail traffic flows. Speke Freight Terminal The Speke Freight Terminal is alongside the West Coast Main Line with good road access. It is owned by the Belfast based Benmore Developments but for many decades has been used as a rail terminal for the automotive sector, most recently by Jaguar Land Rover. It has electrified sidings alongside the West Coast Main Line, and plays an important role in the automotive sector in the North West, supporting the automotive cluster in South Liverpool and Knowsley. The terminal can provide overflow car storage options for Jaguar Land Rover if needed, depending on factory production levels and market demand. These storage requirements are changeable and seasonal, reflecting circumstances and demand. Expanded production at the Jaguar Land Rover car plant in turn has an impact on distribution requirements for delivery of the new cars to customers across the UK and globally. Distribution of the finished cars is handled in two ways rail and road. Regular automotive trains operate from Halewood for Jaguar Land Rover to Southampton, transporting new cars built at Halewood for export to overseas markets globally. These freight trains are operated by DB Schenker Rail (UK). In addition to the rail traffic, new cars built at Halewood are also transported by road to various other seaports across the UK for export and also to local dealerships across the UK for sale. Strong sales and production levels are likely to mean that there is potential for growth in automotive rail traffic from Halewood in the future. The Jaguar Land Rover car plant at Halewood is vital to the automotive sector in the North West and is a very major employer which fundamentally underpins the automotive cluster in South Liverpool and Knowsley. The GETRAG-Ford transmission plant, located next to the Jaguar Land Rover complex, has its own logistics arrangements primarily by road. NUCLEAR WASTE: The Capenhurst site is split into two parts, one owned by the Nuclear Decommissioning Authority (NDA) and managed and operated by contractor Sellafield Ltd, the other owned and operated by Urenco UK Ltd (UUK). The UUK Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 6

7 part of the site is an operational uranium enrichment facility. The Sellafield Ltd part of the site is a former uranium enrichment facility, which ceased operations in Since then it has focused on plant decommissioning, nuclear clean-up and the safe storage of uranic materials, which are by-product of recycling used fuel at Sellafield. No radioactive waste is received and stored at Capenhurst. It is understood that as part of its Export Capability Project, Sellafield Ltd may have aspirations to create a new rail freight terminal to serve the Capenhurst site. This rail siding, if implemented, would be used by Direct Rail Services (DRS) and Sellafield Ltd to transport uranic materials in drums to Sellafield, other UK sites and to UK Ports. The Export Capability Project will focus on two areas; firstly, it will ensure the entire stock of depleted uranium, currently stored safely at the site in mild steel drums, is repackaged to provide robust options for storage and possible future transport. Secondly, it will provide a new goods import/export capability and railhead on the site to minimise future road journeys at the site, both for Sellafield Ltd and potentially for the site s other licensee, Urenco UK Ltd. This could reduce carbon dioxide emissions associated with traffic to the site by 96%. QUINN GLASS: Most silica sand in the UK is transported by lorry and bulk tanker vessels. The only silica sand operation in the UK today with a dedicated rail link is Middleton Towers, Kings Lynn in Norfolk. This quarry is operated by Sibelco UK Ltd which has a number of sites across the UK. From the Middleton Towers site in Kings Lynn, freight trains are used to transport the sand to glass manufacturers in Northern England, including Quinn Glass at Ellesmere Port. Sibelco UK Ltd is a wholly owned subsidiary of Sibelco Group, a privately owned Belgian group with silica sand interests worldwide. Freight trains taking sand for glass making from Sibelco UK Ltd s Middleton Towers quarry in Kings Lynn in Norfolk to Quinn Glass in Ellesmere Port operate around 3 times a week or on an as required basis. These initially operated from Ellesmere Port Docks but moved to the new rail freight terminal at the Quinn Glass (600 jobs) site from late The trains are operated by Freightliner Heavy Haul. It is anticipated that Quinn Glass will actively pursue rail freight opportunities for additional raw materials deliveries (40,000 tonnes Limestone) and bulk consumer liquids imported from abroad for their filling hall. Initial trial runs of container trains carrying finished glass products for Quinn Glass were operated from 3MG Widnes to Glasgow but were not deemed to be successful and as a result it was decided not to proceed with a regular service. Quinn Glass is prepared to consider rail freight for finished glass products in the future. The destinations will depend on customer contracts, locations and volumes. However there are gauge constraints for container trains on the local rail line which they would be interested in trying to resolve to unlock further potential for rail freight in the future. Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 7

8 SCRAP METAL / STEEL / PAPER: There are other rail freight flows into the Liverpool City Region including for scrap metal, steel and paper. Port of Liverpool Scrap metal trains for European Metal Recycling (EMR) operate to the EMR Recycled Metals Terminal at Alexandra Dock from their rail connected EMR Terminals across the UK including Swindon, Sheffield, Lincoln, Hull, Birmingham Landor Street, Smethwick and Kingsbury (Tamworth), transporting scrap metal for export and recycling at steel mills and foundries overseas. There is also a regular scrap metal train from Mossend (Glasgow) to Alexandra Dock. The trains operate 3 times a day or as required and the origin of the trains varies according to demand. These trains are operated by DB Schenker Rail (UK). Additionally scrap metal is also brought in by sea (coastal shipping) and road to both European Metal Recycling at Alexandra Dock and S. Norton & Co. Ltd at Canada Dock for export and recycling at steel mills and foundries overseas. Steel trains to the Gladstone Steel Terminal at Gladstone Dock transport finished steel products from iron foundries in Sheffield for export on the Atlantic Container Line (ACL) container ship service to North America and operate once a week. These trains also occasionally pick up steel flows in Warrington, that have arrived from Tata Steel Europe s South Wales steelworks (Llanwern and Port Talbot). These trains are operated by DB Schenker Rail (UK). Dee Marsh Sidings A steel train operates from Margam and Tata Steel Europe s South Wales steelworks (Port Talbot and Llanwern) to Dee Marsh Sidings for Tata Steel Europe s Shotton Steelworks on a weekly basis. These trains are operated by DB Schenker Rail (UK). Tata Steel Europe also has tonnage to several destinations that currently goes by road that could be converted to rail if there was a viable service and a suitable terminal. A new freight flow transporting paper from UPM Paper Milling at Shotton restarted in 2009 to Barking. Currently we understand that this operates two trains per week and is operated by DB Schenker Rail (UK). HS2 The issue of the future of HS2 is not directly related to the Freight Market Study, but there is a recognition that decisions about HS2 will affect long term capacity on the network, including capacity for freight. It will be important in considering the capacity on the network that the impact of HS2 is taken into account. The current HS2 consultation will be completed before the route studies are undertaken, but it will be essential to ensure that the two processes are linked. Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 8

9 HS2 has the potential to create capacity on the existing network. It will be important that this capacity is utilised effectively and that the balance between demand for freight train paths and passenger train paths is managed to maximum benefit. In the medium term, it will also be important to ensure that capacity for freight is not reduced on the network in the northwest to accommodate passenger trains coming off the first phase of HS2 to Birmingham. SUMMARY The view of the LCR is that demand for rail freight is growing and will continue to grow, especially once Liverpool 2 is open. Significant growth in rail freight demand is expected in containers (both port intermodal and domestic intermodal), biomass, automotive, scrap metal and waste. This will increase pressure on the local network and on access to the national route networks. The new container facility is expected to generate demand for access across the country, to Yorkshire and Humberside in the east, to Scotland in the north and to central and southern England in the south. It will be important for the future of the LCR to have the rail capacity to meet the expected demand and help to achieve the expected long term economic benefits of the SuperPort and the expanded Port of Liverpool. Liverpool City Region Response to Freight Market Study Consultation July 2013 Page 9