The company is like an intermediary co-ordinating body between logistics operators, financial markets, governments and railways.
International logistics operators and hauliers don't want to drive on congested motorways any more than the rest of us do. They add value by ensuring that their customers get their deliveries exactly when and where they are needed. They don't mind if the railways subcontract to take much of the motorway haul off their hands for less money than it costs to hire a driver and a HGV tractor to do the job, as Central Railway proposes. The more so if they also get faster journey times and greater reliability too. There would be opportunities for specialist hauliers to focus on onward delivery from the new rail/road transfer terminals. And anyway in the UK, as in North America, it is getting harder to find people who want to be lorry drivers. Hauliers, especially larger hauliers, tend therefore to be supporters of the concept, most publicly in 2004 when the Road Haulage association signed a letter to The Times supporting the scheme, along with the TUC, leading MPs from each major party, most rail unions, and regional and business organisations.
Now there is growing interest in the financial markets in infrastructure. These can be big stable businesses which face fewer competitive pressures because of the barriers to entry making it costly and hard for other people to create competing infrastructure. Back in 2003, at the UK Government's request, the company secured letters of support from very big capital markets institutions and potential industry partners indicating that Central Railway's proposals were in principle capable of being financed in the capital markets. Clearly no proof of a construction financing's feasibility exists until investors actually write their cheques. This project is three years away at least from raising construction financing and may well change significantly in the mean time (indeed it already has changed since 2003). Nevertheless these letters of support and the work behind them constitute a big vote of support from the financial markets.
As for governments, the scheme represents a big, environmentally friendly increase in effectively road as well as rail capacity - capacity which governments might very well otherwise have to fund themselves in the form of more motorway development. Central Railway obviously offers substantial benefits. Not surprisingly therefore there is considerable latent cross-party political sympathy for the project in the UK. However the size of the project and the nature of planning and approval processes mean that the project requires public political support in each of the countries benefiting from the project. But in looking to support the project, governments have first sought support and reassurance from their railway industries.
In France there has been a long term interest in schemes, including Autoroute Ferroviaire and Central Railway, for a strategic approach to reversing rail freight's decline by establishing strategic freight lines somewhat akin to the successful TGV high speed passenger lines. The company has a cooperation agreement with SNCF the French national railway operator. The previous French Government was supportive when the UK government was thinking about supporting an earlier version of the project in 2003. At EU level Central Railway is completely in line with its New Opera initiative which is looking at establishing a wider European system of freight lines with bridges high enough to carry double stack 2*9'6" containers as well as lorry trailers and all sizes of bulk freight trains. Indeed Central Railway could be the first element in such a system.
In contrast, in the UK Central Railway failed to establish good relations with the railway industry which was in large measure due to mistakes made by Central Railway.
In any case, however, the industry, in particular Eurotunnel, believed that the key to making the Channel Tunnel work was high speed passenger traffic and not freight. Eurotunnel's effort therefore went into securing government support for the CTRL fast passenger line project between London and the Channel Tunnel, which is now nearing completion. It was also genuinely believed in official circles that traditional, single container, rail freight techniques could divert a big share of the UK - Continent freight market through the Channel Tunnel without the need for Central Railway. But it didn't work out that way and there is now an opportunity for some fresh thinking all round.
We have been trying hard to mend fences with the UK industry and thanks to the open mindedness of senior figures within it there is now an opportunity for constructive dialogue.
A few years ago we made a particular effort to secure quotes from a range of organisations demonstrating the understandably broad range of potential support for the project and some of these are set out here by way of illustration.
Evidence to the Transport Select Committee, 20 November 2002 from Graham Good, Project Manager, MidMan Multimodal Study, Arup,
We did look at the impact (of Central Railway) on our study area (the M6 between Manchester and Birmingham) and we came to the conclusion that it would provide valuable extra rail freight capacity in the corridor and so would be welcome.
Resolution adopted by Sheffield City Council, 25 October 2002
That this Council
(a) notes the proposals from Central Railway Ltd. to build and operate a lorries-on-trains freight and passenger railway linking Yorkshire, the North of England and the Midlands with Northern France via the Channel Tunnel;
(b) believes that such a project will provide a significant economic boost to both Sheffield and the wider region, has the potential to provide many jobs and benefit the environment;
(c) accordingly resolves to support in principle the project and urges the Secretary of State for Transport to support the project when considering the Strategic Rail Authorities report on the project;
(d) resolves to engage fully in any consultation which follows to ensure that the details of the project fully reflect the needs of Sheffield; and
(e) resolves to write to the Secretary of State for Transport, the Sheffield MPs, the Chairman of the Strategic Rail Authority, the Chairman of Central Railway, the South Yorkshire Passenger Transport Authority and Director General, South Yorkshire Passenger Transport expressing this Council's support in principle for the project.
The North West Business Leadership Team - Letter to Rt Hon John Spellar MP, Minister for Transport - 24 September 2002
The continuing delays over the upgrading of the West Coast Main Line, its apparent capacity limitations for freight, and the increasingly congested motorway network, all serve to illustrate the importance of the work currently being undertaken by the Strategic Rail Authority in relation to the proposed Central Railway project. Central Railway proposes to build and operate a lorries-on-trains freight railway linking Liverpool and Manchester to northern France via the Channel Tunnel. It is committed to providing the required freight capacity throughout the entire route, thus offering environmental benefits and a vital link to European markets for a significant section of the UK's productive economy whilst easing pressure on both the road and passenger services. As members of the North West Business Leadership Team, representing major businesses throughout this region, we see the Central Railway project as precisely the kind of long-term scheme that is needed if this country's future competitiveness is not to be constantly hampered by poor transport links and road transportation is to be effectively managed. We await the outcome of the SRA's assessment with growing interest and urge the Government to give early consideration to the necessary enabling legislation for this project.
Ronnie Porter, President of The Institution of Highways and Transportation - Belfast - 18 September 2002
I found your presentation most informative and wish you and Central Railway success as you progress this visionary concept of a new rail link.
John Monks, General Secretary -TUC (Letter to Rt Hon John Spellar MP, Minister for Transport) 13 September 2002
I believe that the SRA will be reporting to you shortly on the prospects for the proposals for Central Railway to build a new freight line to link the North West with the channel tunnel. I thought that this would be a good time to remind you that the TUC supports this project. We share the government's aim that more freight should be carried by rail. It is clear that lack of capacity is constraining both the volume and the efficiency of rail freight business at the moment. Unless the capacity problem is addressed it will be very difficult for the government to meet its targets for increasing rail freight. Better transport links to the North West would also bring greater prosperity to the region, and this would be a highly desirable outcome. It will certainly present exciting new opportunities for business in the region. As you know, rail freight had a very hard time indeed after Hatfield. Central Railway are to be praised for maintaining their vision and commitment through this difficult period. It is heartening to know that in this time when it is fashionable to knock the railways, there are still some people with big ideas for the industry. I hope that the SRA's report will allow you to give Central Railway the signal to proceed. If there is anything that the TUC can do to help to get the project started, please let me know.
Local Government Joint Channel Tunnel Initiative -Letter to Rt Hon John Spellar MP, Minister for Transport 11 September 2002
I understand that you will shortly be receiving the recommendations about the Central Railway project from the Strategic Rail Authority, following the further investigation by their consultants that you asked for. I therefore felt that it was an apposite time to remind you of the position taken by the Joint Local Government Channel Tunnel Initiative, the body representing local authorities throughout Great Britain. You will recall that our interest in the project began after an examination of the network capacity problems which we recognised were likely to inhibit the growth of the railway, especially for freight. It became apparent that the Central Railway idea offered a major opportunity to solve that growing problem (which has indeed got worse since we identified it some years ago). It is therefore important that this project is fully and properly tested, and not allowed to go by default. There are certainly a number of concerns being expressed, especially about local impacts, and we support the concept of proceeding by way of the Hybrid Bill as a way of ensuring that these are properly exposed and dealt with. We also recognise the institutional interfaces that the scheme is involved with and we trust that you will not permit these to loom so large as to prevent the project going forward. We hope that you will feel that the Bill route, involving as it does steps like the full Environmental Statement and the surrounding public consultation, is the proper way to proceed. It is through that process that people will be in a position to judge the overall worth of the project. Otherwise, our fear is that in a few years time we will all look back on an opportunity missed. We look forward to your positive decision to back the Hybrid Bill.
Extract from "Driving Business Forward in the North West" (The North West Chamber of Commerce Transport Priority Plan 2002)
The West Coast Mainline (WCML) is in the middle of a major upgrade to achieve faster and more reliable journey times. Completion of this project must now be driven forward with real determination as the delays experienced to date have resulted in unacceptable levels of service. The cost of this upgrade has spiralled to £12 billion ? a significant proportion of the total transport budget. In order to achieve transport upgrades and new developments with limited funding, it is critical that cost projections are more accurate and managed effectively. The Government's reform of the planning process must ensure that unnecessary delays are avoided. We support the concept of creating additional rail capacity for both passenger and freight traffic on the rail network. There are currently two proposals aiming to deliver quality rail links to the region, securing long term capacity. These are: High speed passenger North/South link Central Railway's bid for a freight link from Liverpool to Lille via the Channel Tunnel Both of these lines could bring benefits for the North West through capacity relief on the WCML.
Thames Valley Chamber of Commerce July 2001
Mary Flavelle, policy and communications executive at the chamber, said: "They (LACRC) are putting the cart before the horse. They say that they want traffic off the roads but they have not put in place any alternatives for businesses." Chamber president Jean Charmark expressed his disappointment at LACRC's attitude saying: "These councils claim that they want to see cars and lorries taken off the roads but when they are presented with a proposal which may achieve their wish, they oppose it on environmental grounds." Taken from: http://www.thisisbuckinghamshire.co.uk/buckinghamshire/archive/2001/07/20/bucksnews52403RM.html
Railway Development Society, evidence to Transport Select Committee enquiry on Rail Investment June 2000:
We welcome the much improved positive environment for rail investment, as evidenced by ... revived Central Railway proposals for new freight route.
South West Transport Network (written) evidence to the Transport Select Committee 15 May 2002
Connections between the South West and Europe are important. For passengers by rail, enhancement of the line to Waterloo will help, and when St Pancras is the terminus for Eurostar good connection from the Great Western will be desirable. For freight via Channel Tunnel there is much to be said for the Central Railway project, to which we would expect a connection from the Great Western at Colnbrook, where a major freight area is in development, associated with Heathrow. The possibility might also be examined of a connection from the L&SW line where it would cross the Central Railway (adjoining M25) at Byfleet.
