What if you could cut logistics costs by up to 30% and reduce your carbon footprint? Rail freight could be the solution you’ve been looking for
By Ben Green, Director, Development, SEGRO
As the logistics sector navigates rising operating costs, supply chain pressures and the drive towards net zero, rail freight remains a compelling solution that balances efficiency, resilience and environmental performance. For high-volume parcel operations and nationwide distribution networks, the integration of rail into the transport mix can create both immediate and long-term value.
Recent data from Maritime Transport, one of the UK’s leading intermodal freight operators with terminals at SEGRO Logistics Park East Midlands Gateway and SEGRO logistics Park Northampton, highlights that journeys completed by rail produce 48% less CO₂ equivalent than the same journeys by road, cutting almost 21,300 tonnes of emissions annually in their operations alone. Importantly, these savings are achieved without adding cost. In fact, as road haulage costs continue to rise, rail is becoming increasingly competitive, particularly where estates are directly connected to the rail network.
The cost implications are significant. Moving goods by train for the long-haul portion of the journey and limiting HGV use to first and final-mile legs can reduce spend on fuel, driver hours and vehicle maintenance. Analysis of typical goods movements shows that rail can reduce costs by up to 30% for each journey in four out of five typical scenarios based on journeys between ports and warehouses and from warehouse to warehouse compared with all-road journeys. For large-scale operators dispatching thousands of loads a week, those savings quickly reach into the millions over the course of a year.
Beyond cost, there are operational benefits that resonate in a market where reliability is under pressure. Rail services are less vulnerable to road congestion and the impact of driver shortages, and they offer predictable scheduling that can support tighter delivery windows. When paired with low-emission vehicles for local distribution, the model creates a cleaner, more resilient supply chain that can strengthen service performance while meeting increasingly stringent environmental targets.
Maritime’s own expansion of its terminal network and services in recent years, including its partnership with SEGRO, illustrates how the right infrastructure can make rail integration practical for more businesses.
For a UK-wide distribution network, the opportunity lies in considering rail-linked estates not as a niche solution but as a core part of the operational strategy. The potential for cost savings, emissions reduction and service resilience makes it a conversation worth having at board level, particularly as the sector looks to align profitability with progress towards net zero.