A study commissioned by Cross River Partnership (CRP) and Impact on Urban Health explores the potential of using existing station infrastructure in Southwark and Lambeth to support sustainable rail-based freight deliveries into Central London. Building on CRP’s 2022 Rail Freight in London Feasibility Study, it identifies areas needing further evidence, particularly regarding station suitability for freight operations.
The study presents a strategic case for integrating rail freight into supply chains, highlighting benefits such as reduced road freight pollution, improved air quality, lower carbon emissions, congestion reduction, and increased rail industry revenues through the better utilization of network capacity.
Strategic case
There is a strong strategic case for developing rail freight services at London stations, aligning with the priorities of key stakeholders for achieving net zero. Rail offers a viable option for replacing road vehicles in the linehaul or middle-mile stage of freight transport.
Building on the earlier study by Momentum Transport, this review evaluates additional evidence and previous trial outcomes. While rail freight at stations is feasible in principle, significant barriers remain to its wider development.
For the “parcels as passengers” concept (Concept A), the main finding is that there is currently no incentive for Train Operating Companies (TOCs) to integrate logistics into their operations under the current National Rail Contract (NRC) model. Without policy reform and a mandate from the Department for Transport (DfT), scaling this concept in the short to medium term is unlikely. These barriers limit CRP’s ability to significantly reduce freight emissions in Lambeth, Southwark, and broader London areas.
Concept B, involving the development of a dedicated freight multiple unit (FMU), offers a much larger opportunity. Tailored to logistics market needs, FMUs could capture a share of linehaul and last-mile logistics flows, leading to a direct reduction in HGV and LGV movements. As road-based logistics becomes increasingly challenging in London, large logistics companies are actively seeking alternative transport modes.
Key Findings
-
Passenger TOCs currently have no incentive to carry parcels, with most unwilling to participate.
-
Without DfT intervention, the “parcels as passengers” concept is unlikely to achieve significant environmental benefits soon.
-
A dedicated freight multiple unit concept is likely to be more attractive to the logistics sector and could bring pre-sorted volumes directly into boroughs like Southwark and Lambeth.
-
CRP should prioritize developing a dedicated proof-of-concept project, focusing on a freight multiple unit approach, using London Waterloo as the central London hub.
Implementing either concept would deliver environmental and economic benefits while supporting national and local government efforts to achieve transport decarbonization. Both concepts can be developed in parallel and should not be seen as an ‘either/or’ choice.
The study also found strong interest from the logistics sector in both concepts, particularly to enable fast, same-day deliveries into London.
Key Barriers to Overcome
For the Dedicated Freight Multiple Unit (FMU) Concept:
-
Significant capital investment is required to build dedicated rail-to-road cross-dock facilities within London. The lack of available risk capital for trials remains a significant barrier that needs to be addressed.
-
Although the FMU concept is currently being trialed (e.g., by Varamis and GB Railfreight), the express rail freight market is still in its early stages, with Royal Mail being the notable exception due to its dedicated infrastructure and rolling stock. This could change over the next 12 months, depending on the progress of emerging high-speed rail freight initiatives.
For the Parcels as Passengers Concept:
-
Successful implementation depends on the participation of Train Operating Companies (TOCs), who currently have no incentive to engage with service providers or end users.
-
Rail reform and the design of new Passenger Service Contracts (PSCs) by Great British Railways (GBR) could help create incentives.
-
CRP, supported by Business Improvement Districts (BIDs) and London boroughs, could play a role in influencing TOCs and encouraging greater engagement.
Source: CRP
Also read: Stadslogistiek over het spoor: onderzoekers zeggen dat het kan