Government sets 2040 Rail Freight Growth Target

Government sets 2040 Rail Freight Growth Target 

On 8 September 2026, the Secretary of State for Transport, Heidi Alexander, announced a new target to increase rail freight volumes by at least 40% by 2040, measured in net tonne kilometres. The target is an interim milestone towards a longer-term ambition of at least 75% growth by 2050, and is accompanied by commodity-specific objectives including a 65% increase in high-value goods and a 45% increase in construction goods. If the 2040 growth target is met, it is estimated to raise the annual value of goods moved by rail from £33.7 billion to £49.5 billion.

Legislative Foundation: The Railways Bill

It is anticipated that the rail freight growth target will have a statutory footing. Section 17 of the Railways Bill, currently before Parliament, places a duty on the Secretary of State to set and publish a target to increase the use of the railway network in Great Britain for the carriage of goods. It further requires Great British Railways (GBR), when exercising its statutory functions, to have regard to that target. 

The Bill also imposes a broader duty on Ministers, GBR, and the Office of Rail and Road to exercise their functions in the manner best calculated to promote the use of the railway network for the carriage of goods.

The Role of GBR

GBR will be central to the delivery of the target. The Railways Bill provides GBR with strategic oversight over network access and imposes duties on GBR to support freight growth. 

A dedicated freight member will sit on the board of GBR, the idea being that this will help to ensure that freight operators' needs are embedded in decision-making. A central freight team will also provide a single point of contact for users, with flexibility to offer targeted discounts on track access charges to promote new rail freight services.

Environmental and Sustainability Benefits

The environmental case for modal shift to rail is compelling. A diesel-hauled rail freight service may reduce carbon emissions by up to 76% per tonne compared with road haulage. The Secretary of State’s written statement to Parliament states that meeting the 2040 target could save up to one million tonnes of CO₂ per year compared to if the freight went by road. 

In the context of the UK's net zero commitments, rail freight offers a sustainable logistics option, helping businesses move goods efficiently while easing pressure on the road network. 

Industry Response

The rail freight community has welcomed the announcement as a signal of the Government's commitment to growing rail freight. In particular, freight operators are pleased to see recognition of the role that rail freight can play in enabling economic growth, particularly in areas such as housebuilding and the green energy transition. 

Looking Ahead

Grounding the rail freight growth target in statute through the Railways Bill is an important step, but the real test will be whether the wider regulatory, contractual and investment framework enables the industry to deliver the target in practice.

Stakeholders will be watching the Bill’s parliamentary passage closely, alongside related developments such as the consultation on the Access and Use Policy. In particular, the sector will want to understand how future access arrangements, charging structures and network decision-making support new and expanded freight services.

If implemented effectively, the target has the potential to provide a clearer long-term signal for operators, customers and investors. The challenge now will be to translate that policy commitment into the certainty, capacity and commercial conditions needed to support sustained rail freight growth.