Institute for Transport Studies Infrastructure damage costs and access charging: •New research on cost variability of infrastructure costs with respect to damage characteristics of vehicles - The relative cost of different damage mechanisms is not well understood •New approach combines engineering and statistical methods - Research being developed to move research from pilot to policy relevant stage •Also new British and Swiss econometric studies on renewals - expected to update CATRIN findings (currently 35% cost variability with track damage) •Work to understand the effectiveness of existing access charges in influencing the decisions of operators and rolling stock firms with respect to ‘track friendly’ to inform the design of more differentiated access charge systems B enefits ofS US TRA IL (U K route) £ (at2015 prices) S US TRA IL0 SU STR AIL1 SU STR AIL2 Infrastructure (vehicle only) (140kph) M anager (IM ) Net Benefit 0 28,197,865 19,497,750 FreightO perators -interm odal Net Benefit 2,678,537 3,752,989 438,294 FreightO perators -other Net Benefit 0 219,922 218,892 End U sers -interm odal Net Benefit 13,065,676 18,524,206 16,630,955 End U sers -other Net Benefit 0 1,559,543 997,880 3rd P arties Net Benefit 520,411 4,817,941 4,807,794 Path C apacity Benefits 0 0 23,550,000 N etP resentValue (NP V ) 16,264,623 57,072,466 66,141,565 Innovationsin vehicle-track system ↑availability;↓cost Supply Conditions Dem and response (↑ ) ↑ M arketshare: sustainable freight Environm ental footprint – rail freight(↓ ) M ore sustainable European freight Rail economics research Rail Freight Business Case and Economic Research Freight market modelling: •LEFT GB market model (2015/2030) •Road/rail competition •Price and quality responsive, ~8% increase in rail freight mode share in SUSTRAIL Research in SUSTRAIL was funded by the European Commission under Grant Agreement no: 265740 FP7 - THEME [SST.2010.5.2-2.]. SUSTRAIL research was undertaken with partners including Network Rail, Universities of Huddersfield, Sheffield, and Newcastle, Lulea Tekniska Universitet, VTU Sofia, UP Madrid and TATA Steel. Path capacity valuation: •Benefits of improved capacity utilisation due to higher freight speeds (140kph) •Model estimated using ticket sales data & National Rail Travel Survey data •Rail capacity unlocked , valued at £14 per path km ‘SUSTRAIL’ Business case: •Innovative intermodal wagons + upgraded track (using premium rail steel) •Win-win for all industry groups and third parties − costs down for IM and operators 10.1% saving in track M&R, 11.8% saving in wagon ownership & maintenance − improved reliability and journey time − strong freight user benefits − ~8% shift to rail in container freight market − strong environmental benefits (CO 2 from road) − large path capacity benefits on congested networks SUSTR AIL 0 – vehicle improvem ent S U S TR A IL 1 – vehicle and track im provem ent S U STR A IL 2 – vehicle track and speed im provem ent Vehicles w ithin the S U STR AIL vehicle class 10.4% 17.4% 15.2% Othervehicles 0% 6.9% 4.8% Access charge reduction from base in each of the SUSTRAIL scenarios, due to track-friendly vehicles and resilient track Freight & logistics innovation: •Green Logistics research (supported by EPSRC/DfT /TfL) − decarbonising freight − urban logistics & hubs - now in ‘TURBLOG’ − rail-road connectivity •enhancement of freight modelling (e.g. LEFT and TRANSTOOLS3) www.its.leeds.ac.uk/research/groups/economics-and-discrete-choice/ www.its.leeds.ac.uk/research/themes/freight/

Rail freight business case and economic research

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Page 1: Rail freight business case and economic research

Institute for Transport Studies

Infrastructure damage costs and access charging:•New research on cost variability of infrastructure costs with respect to damage characteristics of vehicles - The relative cost of different damage mechanisms is not well understood •New approach combines engineering and statistical methods - Research being developed to move research from pilot to policy relevant stage•Also new British and Swiss econometric studies on renewals - expected to update CATRIN findings (currently 35% cost variability with track damage)•Work to understand the effectiveness of existing access charges in influencing the decisions of operators and rolling stock firms with respect to ‘track friendly’ to inform the design of more differentiated access charge systems

Benefits of SUSTRAIL (UK route) £ (at 2015 prices)SUSTRAIL0 SUSTRAIL1 SUSTRAIL2

Infrastructure (vehicle only) (140kph) Manager (IM) Net Benefit 0 28,197,865 19,497,750

Freight Operators - intermodal Net Benefit 2,678,537 3,752,989 438,294

Freight Operators - other Net Benefit 0 219,922 218,892

End Users - intermodal Net Benefit 13,065,676 18,524,206 16,630,955

End Users - other Net Benefit 0 1,559,543 997,880

3rd Parties Net Benefit 520,411 4,817,941 4,807,794

Path Capacity Benefits 0 0 23,550,000

Net Present Value (NPV) 16,264,623 57,072,466 66,141,565

Innovations invehicle-track system

↑availability ; ↓cost

Supply Conditions

Demand response (↑)

↑ Market share:sustainable freight

Environmental footprint – rail freight (↓)

More sustainable European freight

Rail economics researchRail Freight Business Case and Economic Research

Freight market modelling:•LEFT GB market model (2015/2030)•Road/rail competition•Price and quality responsive, ~8% increase in rail freight mode share in SUSTRAIL

Research in SUSTRAIL was funded by the European Commission under Grant Agreement no: 265740 FP7 - THEME [SST.2010.5.2-2.]. SUSTRAIL research was undertaken with partners including Network Rail, Universities of Huddersfield, Sheffield, and Newcastle, Lulea Tekniska Universitet, VTU Sofia, UP Madrid and TATA Steel.

Path capacity valuation:•Benefits of improved capacity utilisation due to higher freight speeds (140kph)•Model estimated using ticket sales data & National Rail Travel Survey data•Rail capacity unlocked , valued at £14 per path km

‘SUSTRAIL’ Business case:•Innovative intermodal wagons + upgraded track (using premium rail steel)•Win-win for all industry groups and third parties

− costs down for IM and operators10.1% saving in track M&R, 11.8% saving in wagon ownership & maintenance

− improved reliability and journey time− strong freight user benefits − ~8% shift to rail in container freight market− strong environmental benefits (CO2 from road)− large path capacity benefits on congested

networks

SUSTRAIL 0 – vehicle

improvement

SUSTRAIL 1 – vehicle and track

improvement

SUSTRAIL 2 – vehicle track and

speed improvement

Vehicles within the SUSTRAIL vehicle class

10.4% 17.4% 15.2%

Other vehicles 0% 6.9% 4.8%

Access charge reduction from base in each of the SUSTRAIL scenarios,due to track-friendly vehicles and resilient track

Freight & logistics innovation:•Green Logistics research (supported by EPSRC/DfT /TfL)