Transport Secretary Heidi Alexander has set a new target for rail freight to grow by at least 40% by 2040, measured in net tonne-kilometres. The Government says achieving the target could save around one million tonnes of CO₂ every year compared with moving the same freight by road.
The policy is intended not simply to grow rail freight in isolation, but to encourage more goods to move by train instead of travelling the entire journey by road. The biggest shift is expected in high-value goods. By 2040, the Government sees potential for high-value rail freight to increase by 65%, while construction goods could rise by 45% and critical goods by 7%.
The high-value category includes goods such as containers, cars, white goods, wine and medicines — precisely the kind of freight that can currently form part of long-distance road transport operations.
Road currently dominates UK freight
The scale of the proposed change becomes clearer when compared with the current freight market. Road remains by far the dominant mode for domestic freight in Britain. The latest comparable Department for Transport figures show that 82% of domestic freight was moved by road in 2024, measured in tonne-kilometres, compared with around 8% by rail.
That means the Government is trying to increase rail’s share of a market in which HGVs currently carry the overwhelming majority of goods. However, the 40% rail-growth target does not mean road freight volumes are expected to fall by 40%. Overall freight demand may continue growing, and many rail movements still rely on trucks for the first and final parts of the journey.
Nevertheless, moving more containers and other goods by rail over long distances could reduce the amount of trunking carried out entirely by road.
Containers are central to the plan
Intermodal freight is expected to play an important role in delivering the target. Freightliner chief executive Chris Lawrenson said moving more containers by rail would be “central” to achieving the Government’s ambitions. Freightliner, now part of CMA CGM, is investing in 150 new Shortliner wagons due to enter service next year, with further investment planned. For road operators, increased intermodal rail freight could change rather than eliminate transport work.
HGVs would still be required to move containers between ports, rail terminals, warehouses and customers, but a greater proportion of the long-distance section of those journeys could take place by train.
Government gives rail freight greater weight
The policy will also be backed by the planned creation of Great British Railways. Under the Railways Bill, the Transport Secretary will be required to set freight-growth targets for GBR, while the organisation will have formal duties relating to freight and a board member specifically responsible for the sector.
The Government estimates that the value of goods transported by rail could rise from £33.7 billion to £49.5 billion if the 2040 target is achieved. Rail Freight Group director general Maggie Simpson said the target reflected significant opportunities to move more goods by rail.
The challenge will now be whether the rail network has enough capacity, suitable terminals and competitive services to persuade shippers to move freight away from road on the scale the Government envisages.
