ORR Considering Raising Freight Charges

[whole diary]

[EBrown]

The ORR^» (Office of Rail and Road formerly Office of Rail Regulation - about) is considering increasing Freight charges to raise more money. The largest rise I can see (I've only scanned through this) is the proposed increase in coal costs, which the ORR believe should be increased by 400%. I think (this document is long and confusing to a simple mind like mine) that the increase is coal is due to its in-elasticity, hence allowing a lower increase for other freight (i.e. not scaring other customers off).

Anyway, it's a riveting read: http://www.rail-reg.gov.uk/pr13/PDF/freight-charge-consultation-may2012.pdf 

[eightf48544]

Oh dear oh dear. We really do have our knickers in a twist over railfreight. I thought the whole idea was to get freight onto rail to cut the number of lorries on the road.

The problem is that we have so little rail freight capacity what with all the short passenger trains running about and lack of sidings unloading points etc. that we have start raising charges to stifle demand.

I don't believe coal is that inelastic to take a 400% rise, i am sure you could find 50 20 tonne trucks to ship a train load of coal from Immingham to Drax for less than the rise. Besides which any additonal cost of coal transport will put up all our electricty bills.