The Government has set a new target for Great British Railways to increase the amount of freight moved by rail by at least 40% by 2040.
Transport Secretary Heidi Alexander formally announced the new milestone in a written statement to Parliament on Tuesday, saying it would support economic growth, strengthen supply chains and help cut carbon emissions.
The 2040 target is intended as an interim step towards the Government's existing ambition of increasing rail freight by at least 75% by 2050.
According to the Department for Transport, rail freight currently moves goods worth £33.7 billion a year. Ministers estimate that meeting the new target could increase that figure to £49.5 billion.
The Government also expects substantial growth in several categories of freight by 2040, including a 65% increase in high-value goods, a 45% increase in construction goods and a 7% increase in critical goods, measured in net tonne kilometres.
Ministers say the shift could save around one million tonnes of carbon dioxide each year compared with transporting the equivalent freight by road.
Target to be embedded in Great British Railways
The announcement comes as the Railways Bill continues its passage through Parliament.
The legislation will provide for the Transport Secretary to set a rail freight growth target for Great British Railways, meaning the commitment is intended to become part of the new publicly owned body's statutory framework rather than remaining solely a policy ambition.
The Department for Transport said Great British Railways would have strategic oversight of network access and two clear duties to support freight growth. A dedicated member of the organisation's board is also expected to have responsibility for freight.
Ms Alexander said the new target would give the rail freight industry greater certainty to invest while helping businesses move more products and materials around the country.
Network Rail chief executive Jeremy Westlake also backed the announcement, arguing that increasing freight on the railway could support economic growth while reducing road congestion and emissions.
The Rail Freight Group welcomed the target, saying there were significant opportunities to move more goods by rail and that the industry was ready to support the Government's growth plans.
Formal statement to Parliament
In her written statement, Ms Alexander confirmed that the Government expects the 40% increase to be measured in net tonne kilometres.
She said the target was designed to improve supply-chain resilience, support economic growth and help decarbonise the logistics sector.
The Railways Bill began its committee stage in the House of Lords on 8 September.