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New report shows how Luxembourg Rail Protocol can save the UK up to £ 5.2 bn
A new report published on 30th November by Oxera and the Rail Working Group outlines how the ratification of the Luxembourg Rail Protocol could bring significant economic benefits to the UK over the next thirty years. The report estimates that adoption of the Protocol would lower the cost of financing, helping UK businesses save up to £5.2bn.
The report quantifies the direct micro-economic benefits of introducing the Protocol for the UK economy. Key findings include:
- Introducing the Protocol would lead to £5.166bn in savings for the UK economy at net present value, over the period between now and 2049;
- This represents £129m in savings every year;
- 93% of these savings would relate to purchasing of new rolling stock.
The report suggests that these savings could be even greater if any road freight capacity transfers onto rail, which is likely as part of the UK Government’s push to decarbonise freight transport.
Andrew Meaney, Partner and Head of Transport at Oxera, said: “Despite highly uncertain times for the rail industry, ratifying the Luxembourg Protocol would cost nothing, and save significant amounts of money for rail customers and taxpayers in the long term. Few policy choices governments can make offer such strong payoffs. Moreover, additional benefits could emerge over and above those we have quantified, if the UK were able to build on its long history of private finance for rolling stock and become a global centre for rolling stock financing.”
To see the complete report click here
