NEWS 10 HYDRAULICS & PNEUMATICS July/August 2025 www.hpmag.co.uk Make UK & Barclays report urge investment in rail & logistics hubs to drive decarbonisation and growth Britain’s manufacturers are urging the Government to resurrect the original High Speed 2 (HS2) rail plans to Leeds and Manchester, arguing it is essential for expanding freight capacity, reducing emissions, and supporting national productivity. The call comes as a new report from Make UK and Barclays UK Corporate Bank reveals that nearly nine in ten manufacturers (89%) believe the original HS2 route should go ahead. A similar number support investment in faster rail connections between major Northern cities including Liverpool, Manchester, Sheffield, Hull, and Newcastle. The findings come amid growing concern that existing rail infrastructure cannot cope with future freight volumes. The Government has set an ambition to increase rail freight by 75% by 2050 - a goal manufacturers argue is impossible to achieve without freeing up existing rail lines currently shared with passenger services. Make UK is calling for a strategic approach that links Britain’s largest port at Felixstowe through the OxfordCambridge Arc and onward via HS2 to the Midlands and the North. This would better connect the so-called “Golden Triangle” of research, innovation, and logistics - driving regional economic development while supporting Net Zero targets. Inspired by successful European models, the report proposes the creation of logistics hubs at key sites along the country’s industrial spine - such as Ely Junction and Trafford Park - to boost integration between road, rail, and port infrastructure. Verity Davidge, Director of Policy at Make UK, said: “It’s clear that the current levels of rail capacity aren’t suitable for the levels of freight traffic the Government is predicting in the future. As a result, if industry is to make greater use of rail then we need the extra capacity which a high-speed link for passenger traffic would free up. This would provide a valuable opportunity to invest in multi-mode hubs which would improve connectivity between our major ports and better integrate road and rail routes through the spine of the country.” The report reveals that 89% of manufacturers currently rely on road transport, with 59% seeing road investment as essential for just-in-time operations. Only 38% view rail investment as a priority. Cost remains the primary barrier to shifting more freight to rail, with 45% of respondents citing this as the key deterrent. Other significant obstacles include low shipment volumes (42%) and lack of access to local rail terminals (39%). Notably, the cost per tonne-mile of rail freight has risen by 10% over the past decade, compared with just a 3% increase for road transport. Nevertheless, nearly a third (31%) of manufacturers still believe rail should be the top transport investment priority, and 61% say the Government should focus on creating integrated, multi-modal transport systems that combine rail, ports, and road networks. Lee Collinson, Head of Manufacturing, Transport and Logistics at Barclays UK Corporate Bank, said: “It’s important that UK transport infrastructure is at the forefront of discussions among policymakers. Upgrading and integrating our road, rail, and port systems is crucial for boosting productivity, decarbonising transport, and supporting long-term competitiveness. By addressing key barriers and enhancing rail freight, we can achieve significant environmental benefits, reduce lorry journeys, and improve road safety. We’re excited to work with industry bodies like Make UK as we deliver for the sector, going beyond numbers and supporting its plans for growth.” The report highlights that improving freight rail access could unlock a range of secondary benefits. Nearly two-thirds (62%) of manufacturers say better rail connectivity would widen their access to labour, while a similar number would be more likely to invest in skills and capital projects as a result. With manufacturers under pressure to meet ESG goals, rail freight also offers a greener alternative to road haulage - potentially cutting millions of lorry journeys by 2050. The message from industry is clear: to meet freight growth targets, support economic development, and achieve sustainability goals, rail investment must be revived - starting with the resurrection of the full HS2 route.
RkJQdWJsaXNoZXIy MjQ0NzM=