Picture shows an EWS Channel Tunnel freight train loaded with cars
The amount of freight moved on the rail network in Britain rose by 9.5% during 2004/05 to 20.7 billion net tonne kilometres.
The increase was announced as the European Commission approved an extension to the payment of rail freight Channel Tunnel tolls. This is a boost to EWS's new European rail freight subsidiary, Euro Cargo Rail, which will start operations in France later this year.
The increase of 9.5% means that rail freight has grown by 60% since 1995, and that the amount of freight moved, measured by billion net tonne kilometres, is at its highest level since 1977.
Rail freight operator EWS says it has facilitated this growth by continually improving its service.
New long-term contracts have been won by EWS over the past year from customers in the construction, petroleum, aggregate, coal, intermodal and general merchandise markets.
EWS has created an additional 4.3 million tonnes of coal haulage capacity over the last year by operating longer services to power stations.
The effects of the working time directive and rising fuel costs have also seen EWS win long-distance trunk haulage from the road network, with local distribution provided by road creating a new partnership between the two modes.
Future growth in rail freight is expected to continue by increasing services for bulk haulage, general merchandise and fast-moving consumer goods.
EWS also expects that rail freight services to and from mainland Europe will see significant growth, delivered by Euro Cargo Rail. In planning for this overall growth, EWS is investing £61million during 2005/06 in new wagons, international terminals and line re-openings.
In a further boost to rail freight growth, the European Commission has announced its approval for the extension of the existing agreement between EWS International and the UK Government on freight tolls through the Channel Tunnel.
This agreement, which will last until November 2006, will encourage international freight traffic and pave the way for a long-term charging agreement from December 2006.
The growth in European rail freight will be facilitated by the operation of rail freight services in France under the newly formed Euro Cargo Rail.
Based in Paris, Euro Cargo Rail will play an active role in expanding the amount of rail freight in Europe, in line with European Commission policy.
The new company is part of a strategy to expand international rail freight volumes, not only in Britain and through the Channel Tunnel, but also in mainland Europe, building on EWS's existing European expertise.
Initial services will operate in France and interest from potential customers is high.
Euro Cargo Rail is a wholly owned subsidiary of English Welsh & Scottish Railway Holdings Limited.
Rail freight in Europe currently accounts for 8% of the total freight transportation base. Following legislation from the European Commission to facilitate rail freight growth and competition, this is forecast to rise from 8% to 15% by 2020.
Keith Heller, EWS Chief Executive, said: "This has been a record-breaking year for rail freight in Britain. By operating efficiently and creating the right packages for customers more business has been won to rail.
"Much has been achieved and we have a blueprint to win significant new volumes to rail over 2005/06. While we achieve this, we have exceptional people who deliver these services and I'd like to thank all of the staff at EWS for delivering a great service to our customers and a good result for rail freight."
On European services, Mr Heller said: "The European Commission decision also enables EWS to begin active discussions on the appropriate and realistic level of charging by Eurotunnel for freight services to use the Channel Tunnel after November 2006.
"During these discussions, EWS will continue to secure additional new tonnage to its European and Channel Tunnel operations."
Information from EWS.
www.ews-railway.co.uk