Royal Mail to ditch ageing train fleet in major change to how it delivers post

The firm will instead use a combination of commercial rail services, its existing road network and reduced air services to transport mail

Royal Mail is set to ditch its ageing train fleet amid sweeping changes spearheaded by the postal giant.

On Wednesday, the company announced that its nearly 30-year-old cargo trains are coming to the end of their operational lives. As a result, Royal Mail has declared it won’t be investing in new rolling stock.

Instead, the company is opting for a mixed approach, using commercial train services, its expansive road network, and a scaled-back air transit. This move follows Roayl Mail’s announcement that is it cutting domestic air freight in half, part of a plan to enhance efficiency and to reduce itsa carbon footprint.

Currently, 3% of mail is transported by train, but with the increasing driving workload, Royal Mail anticipates it will create over 30 new full-time driving jobs.

However, the decision to scrap the use of its own freight trains has raised questions on how the postal service will maintain demand by switching to road haulage while continuing to reduce its climate impact. The move appears to be a change in direction from Royal Mail’s previous strategy to move away from planes and lorries in favour of the railways as part of net zero efforts.

Reports from 2022 had ex-boss Simon Thompson aiming to at least triple the number of parcels delivered by train. His tenure also saw the inauguration of Royal Mail’s biggest UK package processing hub at the Daventry International Rail Freight Terminal just last year.

Despite the revamp, Royal Mail remains steadfast, insisting this course adjustment will leave its carbon trail “broadly neutral” and maintains a pledge to reach net zero come the year 2040. Royal Mail, which boasts of being the UK’s most eco-friendly delivery service with its massive electric vehicle fleet of about 5,000, has been using over 10 million litres of sustainable biofuel since last June.

A spokesperson for the company stated: “Royal Mail will continue to use rail services to transport mail across the country however our own freight trains are at the end of their operational lives. The trains are almost 30 years old and it is increasingly difficult to secure parts for maintenance and the routes we need to meet our service requirements.”

“To improve reliability, increase cost-effectiveness and remain consistent with our environmental goals, over the coming months we will cease operating our own trains whilst continuing to use a mix of rail, road and air to transport mail to all corners of the UK.”

This move follows the news that Royal Mail’s parent company, International Distribution Services, accepted a £3.57billion buyout offer from Czech tycoon Daniel Kretinsky’s EP Group in May. Labour vowed to “robustly scrutinise” the takeover and give workers a “stronger voice’ in its election manifesto.

Royal Mail confirmed that there are no job losses for employees as a result of the change and that staff will be redeployed to other roles but the decision may affect freight jobs. The firm has given notice to DB Cargo UK, which operated and maintained Royal Mail’s fleet of Class 325 electric trains for the last decade, to end the relationship.

In a letter to staff, DB Cargo’s chief executive Andrea Rossi called the decision a “blow” to the company and its colleagues. Royal Mail has assured that there won’t be any job losses among employees due to this shift, with staff being reassigned to different roles, although the decision could impact freight jobs.

“I wish to be honest and transparent with all of you that we need to process and understand the implications of Royal Mail’s decision and, of course, we will be speaking to our Trade Unions to ensure we can communicate to colleagues as quickly as possible what any impact may be,” she wrote.

Rossi clarified in the correspondence that Royal Mail’s choice wasn’t a reflection on DB Cargo’s service quality, remarking: “Royal Mail has made it clear that its decision is purely down to the increasing costs of electric traction (EC4T) and the high investment needs of its ageing 325 fleet.”

Further, she mentioned that DB Cargo UK is planning “urgent talks” with the incoming Labour governance and associated figures within the industry to bridge the gap between rail freight and roadway haulage competitiveness, also mentioning the current pushback against excessive Network Rail electricity charges used for locomotion.