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Royal Mail to Cease Rail Deliveries in October

Royal Mail, the UK's national mail delivery company, will cease its rail deliveries in October due to rising electricity costs, marking a significant shift in its logistics strategy. The move, announced by DB Cargo UK CEO Andrea Rossi, has sparked disappointment within the rail freight sector and prompted calls for government intervention to address cost disparities between rail and road transport. Additionally, Royal Mail plans to halve its domestic flights this year as part of its effort to achieve net-zero carbon emissions by 2040.

William
William Carlin

10 Jul 2024 5:19 PM

Royal Mail to Cease Rail Deliveries in October
HotNotes
  • Royal Mail will end rail deliveries in October due to rising electricity costs, despite previous commitments to increase rail usage for net-zero goals.
  • DB Cargo UK CEO Andrea Rossi criticized the decision, highlighting the broader negative impact on the rail freight sector and calling for government intervention.
  • Royal Mail also plans to halve its domestic flights this year to reduce carbon emissions and modernize its operations, aiming for net-zero by 2040.
  • A Shift in Logistics Strategy


    Royal Mail, the UK's national mail delivery company, has announced it will end its rail deliveries in October this year, marking a significant shift in its logistics strategy. The decision was revealed by DB Cargo UK CEO Andrea Rossi, who expressed disappointment over the change, noting that it was not due to operational performance issues. Royal Mail, now owned by International Distribution Services under Czech billionaire Daniel Křetínský, had previously committed to increasing rail journeys as part of its net-zero plans. However, rising electricity costs on the railways, charged by Network Rail, have led to this reconsideration.


    Impact on Rail Freight Sector


    The decision to discontinue rail services has been attributed to the high costs of electric traction, which has already led DB Cargo to remove its electric Class 90 locomotives from service. Rossi criticized the move, highlighting the broader implications for the rail freight sector and the sustainability goals it supports. He called for urgent talks with the new Labour government to address the cost disparities between rail freight and road haulage, which is heavily subsidized. The end of rail deliveries marks the conclusion of a long history of mail trains in the UK, dating back to 1830.


    Further Changes and Sector Reactions

    

    In addition to cutting rail services, Royal Mail has also announced it will halve its domestic flights this year. This decision is part of a broader effort to reduce carbon emissions and modernize its operations. The company aims to achieve net-zero by 2040 and improve reliability for customers through increased reliance on road transport. Royal Mail's road fleet includes a significant number of electric vehicles and uses hydrotreated vegetable oil (HVO) as a fuel source. Despite these changes, reactions from the sector have been critical, with some viewing the shift away from rail as a setback for sustainable logistics solutions.

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