Electric Rail Freight Needs Fairer Costs and Strategic Electrification, Industry Warns

Rail industry leaders say targeted overhead line investment and lower electricity charges are essential if freight operators are to shift away from diesel and help deliver Britain's decarbonisation ambitions.

Britain's rail industry is calling for a fresh approach to freight electrification, warning that the high cost of electric traction is undermining efforts to move more goods by rail and reduce carbon emissions.

A new report published by the Railway Industry Association (RIA) argues that targeted electrification of key freight corridors, combined with reforms to electricity charging, could unlock significant environmental, economic and network capacity benefits.

Industry leaders believe relatively modest infrastructure investment could allow more freight services to operate under electric power while reducing reliance on diesel locomotives.

Electric Traction Still More Expensive

Despite being cleaner and more energy efficient, electric freight services remain more expensive to operate than diesel in many circumstances.

According to the report, electricity charges currently mean operators can face higher operating costs when using electric locomotives.

David Clarke, Senior Technical Adviser at the Railway Industry Association, believes addressing that imbalance should become a priority for Government.

He said:

"One of the challenges is a differential in the cost of fuel. Making it economically viable for a freight operator to use electric is key."

Clarke added that greater engagement with Government could demonstrate the wider benefits rail freight delivers through improved network capacity and lower emissions.

Calls for Smarter Charging

Freightliner says electricity pricing remains one of the biggest barriers to wider adoption of electric haulage.

The operator estimates that electric traction currently costs around 20% more than equivalent diesel operations.

Peter Graham, Freightliner's Policy and Government Affairs Director, believes Great British Railways could help address this through a revised charging framework.

He said future discounts should support the use of lower-carbon traction and suggested the Traction Electricity Chargecould better reflect the operational characteristics of freight services, particularly their greater use of the network during off-peak periods.

Targeted Electrification Could Deliver Big Returns

Rather than advocating wholesale electrification of the railway, the RIA report recommends strategically wiring relatively short sections of track capable of unlocking much larger benefits across the freight network.

The report concludes that while fully electric locomotives remain the long-term objective, bi-mode electric/diesel locomotives provide an important transitional solution, with battery-electric technology also expected to play a growing role on certain routes.

Clarke said relatively small infrastructure schemes could deliver disproportionately large operational improvements.

He added that the Department for Transport's forthcoming Rolling Stock and Infrastructure Strategy must ensure freight requirements are fully reflected within future investment decisions.

Key Missing Links Identified

Industry experts have highlighted several priority schemes where relatively limited electrification could transform freight operations.

Julian Worth, Chair of the Rail Freight Forum at the Chartered Institute of Logistics and Transport (CILT), identified the three-mile London Gateway branch as one of the clearest examples.

Electrifying the route would allow Freightliner's Class 90 electric locomotives to haul trains directly into the port, improving both efficiency and network capacity.

The scheme is estimated to cost around £10 million, although no delivery programme has yet been announced.

Further recommendations include electrifying the connection between the North London Line and the West Coast Main Line at Willesden Junction, alongside major freight corridors such as:

• The Berks & Hants Line

• The Hope Valley route

• The South Wales Main Line west of Cardiff towards Margam

Worth warned that without further electrification, even new locomotives such as the Class 99 would be unable to haul today's heaviest freight loads across several strategic routes.

Supporting Net Zero Logistics

As demand grows for lower-carbon freight transport, the report argues that removing financial barriers to electric haulage should sit alongside targeted infrastructure investment.

Together, the measures could improve rail freight competitiveness, reduce emissions, increase network capacity and help remove thousands of HGV movements from Britain's roads.

For the rail freight sector, the message is clear: electrification alone will not deliver decarbonisation. Without a charging system that makes electric operation commercially viable, many operators will continue relying on diesel despite the availability of cleaner technology.