Network Rail must invest much of its £747 m profit in capacity and capability for freight’, according to RFG chairman Tony Berkeley, commenting on Network Rail’s results for the six months to 30 September 2006, announced on Tuesday 27 November.

Rail freight schemes, be they gauge or capacity enhancements, or improved freight routes to relieve capacity for passenger services on other lines,   generally demonstrate good value for money, and in environmental benefit compared with road freight

RFG welcomes the improved performance recorded by Network Rail with over 90% of trains being on time - freight does even better with some customers recording 98% on time.

RFG also welcomes the 7% increase in investment by NR, but believes it should have been much greater, probably reflecting an inability of NR to develop schemes quickly enough.

A 25% reduction in costs over the last 2 ½ years, mean that the company is well on its way to beating the 31% cost reduction required by the Office of Rail Regulator over the current five-year control period.

Tony Berkeley commented: ‘These results demonstrate that Network Rail is more than capable of reducing costs still further - we believe that a further 40% reduction over the next five years is achievable and should be specified by the ORR.  That will lead to lower access charges and make rail freight more competitive.

‘Secondly, new investment must be speeded up, with a substantial increase in funding from the £747 m profit, with parallel moves to reduce the capital costs of new works.’

He concluded - ‘industry forecasts substantial growth in demand; now is the time to invest in the new capacity and capability needed to meet it and ensure that new business is not turned away’