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Rail Environmental Benefit
Procurement Scheme (REPS)
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Contents
Para
1 Introduction
1.1 Important background information 3
1.2 About the schemes 3
2 General information about REPS 4
2.1 Administrative bodies 4
2.2 Duration of the scheme
2.3 Other freight grants
2.4 How other public sector support is treated
2.5 How to apply
2.6 How applications are prioritised
2.7 The decision
2.8 Publicity
2.9 What happens if an application is unsuccessful?
2.10 What happens if an application is successful?
2.11 The contract
2.12 Payment of grant
2.13 Clawback
2.14 Business transfers
3 Rail Environmental Benefit Procurement Scheme (Bulk)
3.1 What is REPS (Bulk)?
3.2 Eligible traffic
3.3 Ineligible traffic
3.4 How does REPS (Bulk) work?
3.5 Calculation of environmental benefits
3.6 The financial appraisal
3.7 Who can apply?
3.8 Can I apply for REPS (Bulk) if I am tendering for work?
3.9 Traffic commitment
4 Rail Environmental Benefit Procurement Scheme (Intermodal)
4.1 What is REPS (Intermodal)?
4.2 Eligible traffic
4.3 Ineligible traffic
4.4 How does REPS (Intermodal) work?
4.5 How the maximum rates were calculated
4.6 How much grant will I get?
4.7 Who can apply?
4.8 Additional volume requirements
4.9 Short term temporary arrangements 15
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5 Further information & contacts
A1 Map of zones for REPS (Intermodal)
A2 REPS (Intermodal) grant rates
A3 REPS (Intermodal) environmental benefits
A4 Calculation of environmental benefits for REPS (Bulk)
A5 Financial appraisal of REPS (Bulk)
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1 Introduction
1.1 Important background information This guide is correct at the time of
publication. However, some processes may change during the lifetime of the
scheme so applicants are strongly encouraged to contact the appropriate
administrative body for the most up to date information about the scheme before
submitting an application for grant.
Applicants should note that any offer of grant remains at the discretion of the
appropriate administrative body and there is no automatic entitlement to grant
support. This guide sets out the procedures that will normally apply.
1.2 About the schemes Taking freight off congested roads and moving it by rail or
water can have environmental and wider social benefits. However, rail and water
can sometimes be more expensive than road transportation. Three schemes are
available that are designed to facilitate the purchase of the environmental and social
benefits that result from using rail or water transport instead of road. These schemes
are:
a) Freight Facilities Grant scheme (FFG): helps offset the capital cost of providing
rail and water freight handling facilities.
b) Rail Environmental Benefit Procurement Scheme (REPS): assists companies
with the operating costs associated with running rail freight transport instead of road
(where rail is more expensive than road). The scheme is a direct replacement for the
Track Access Grant (TAG) and Company Neutral Revenue Support (CNRS)
schemes in Great Britain.
REPS operates in two parts:
REPS (Intermodal) for the purchase of intermodal container movements by rail
(replaces CNRS).
REPS (Bulk) for the purchase of other freight traffic movements by rail (replaces
TAG).
c) Waterborne Freight Grant scheme (WFG): assists companies with the operating
costs, for up to three years, associated with running water freight transport instead
of road (where water is more expensive than road).
This guide only deals with the REPS scheme.
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Copies of all guides and any additional information relating to any of the other
freight grant schemes can be found on the website of the relevant administrative
body, details of which are presented in Section 5 of this guide.
Potential applicants should ensure they carefully review the relevant
parts of this document and speak to the appropriate administrative
body before submitting a formal application for grant.
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2 General information about REPS
2.1 Administrative bodies
REPS is administered by:
– Department for Transport: For flows entirely within England and for cross
border flows where the majority of environmental benefits fall in England.
– Scottish Government: For flows entirely within Scotland and for cross border
flows where the majority of environmental benefits fall in Scotland.
– Welsh Assembly Government: For flows entirely within Wales and for cross
border flows where the majority of environmental benefits fall in Wales.
Contact details can be found in Section 5.
For REPS (Intermodal), the tables in Annex 2 provide information on the lead
administrative body for each traffic flow.
For REPS (Bulk), please contact one of the administrative bodies to confirm the lead
party.
Where an application for REPS is linked to the development of FFG funded facilities
the lead administrative body will be the body who is administering the FFG
application process.
2.2 Duration of the scheme
The European Commission has approved the scheme for a period of three years, from
1st April 2007 to 31st March 2010. Any offers of REPS will be limited to this three
year period.
Prior to the approval expiring, the scheme will be evaluated to ascertain whether an
extension will be pursued. If an extension is pursued, and approved by the European
Commission, it is anticipated that the REPS (Intermodal) maximum rates will reduce.
A key factor that will affect any future scheme, should it be decided that there will be
one, will be the timing and nature of a road user charging scheme.
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2.3 Other freight grants
The Freight Facilities Grant (FFG) is administered by the Department for Transport,
the Scottish Government and the Welsh Assembly Government. Waterborne Freight
Grant (WFG) is administered by the Department for Transport and the Scottish
Government. Further details on FFG and WFG can be found in separate guides
available from the contacts detailed in Section 5.
In principle, applicants can seek FFG as well as REPS. In considering prioritisation,
the total grant requirement and total environmental benefit will be taken into account.
Applications for FFG should therefore be submitted at the same time as the associated
REPS application wherever possible.
Applicants should be aware that REPS/WFG will not be available if the benefits
associated with the traffic have been utilised as part of a previous offer/s of FFG.
2.4 How other public sector support is treated
Proposals with other public sector support (such as Objective 1 funding or the
Aggregates Levy Sustainability Fund) can be submitted and you should seek advice
from the administrative body on how this will affect the assessment of your scheme.
Assessment will be on a case by case basis depending on the specific details of the
proposal.
2.5 How to apply
For an applicant there are three key steps:
– Work up basics of proposal, including identifying the freight operator.
– Make an informal approach to the appropriate administrative body.
– If eligible in principle, submit a formal application.
Before making a formal application for REPS, you should approach the administrative
body who will be able to provide advice on whether the traffic as presented is likely to
be eligible for REPS, budget availability and any bid round processes. An initial
meeting with the administrative body is usually the best way forward and can save
unnecessary work.
Before the initial meeting, the administrative body will want to know:
– The type of traffic, including volumes and envisaged duration of flows.
– The nature of the service (e.g. single or multi-user).
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– The origin and destination of the traffic including details of the rail terminals to
be used.
– Details of any discussions with freight operating companies, ports and
terminal operators.
Standard application forms are available for companies to apply for REPS.
2.6 How applications are prioritised
Some administrative bodies may operate a bid round process, other administrative
bodies may operate on a first come first served basis. Schemes will be prioritised on
the basis of value for money. Those schemes which deliver the greatest value are most
likely to succeed. Other factors that may be considered include the financial viability
and previous record of the applicant, and the deliverability of the traffic volumes
contained in the application for grant.
An applicant can improve the value for money of their scheme by making an
application for support at a rate below the maximum grant available.
Further details on the latest prioritisation procedures can be obtained from the
contacts/websites outlined in Section 5.
2.7 The decision
A decision on an application for REPS can be expected within 6 weeks of a fully
supported application being submitted. In cases where a bid round is in operation, a
decision can be expected within 6 weeks of the closure of the bid round. This
timescale may vary in accordance with the detailed application procedures adopted by
the respective administrative bodies.
There are likely to be circumstances where the administrative body will award part
volumes for a restricted period to ensure that the volumes contained in the original
application can be delivered. On other occasions the application for grant may be
rejected.
2.8 Publicity
In order to be clear and transparent the administrative bodies will publish the rates,
value for money and duration for all awards. In addition, the total amount of
contracted REPS funding for each beneficiary will also be made publicly available.
2.9 What happens if an application is unsuccessful?
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If an application is unsuccessful feedback can be provided on request as to the reasons
why the application has not resulted in an offer of grant. It may be possible for an
applicant to reapply in future, taking recognition of the feedback received.
2.10 What happens if an application is successful?
The applicant will be informed, and a contract entered into between the applicant and
the administrative body. No REPS payments can be made unless there is an active
contract in place. REPS payments will not be made retrospectively for traffic moved
in a rail period prior to the establishment of a valid contract.
2.11 The contract
The main contract terms will be standard, varying only by the duration, volume and
type of traffic on which REPS will be paid. No payments can be made for traffic in
excess of the contracted levels.
Each REPS contract will specify a rate payable for each unit (tonnes, container,
vehicle etc) moved. This rate will be the lowest of the following:
– The amount applied for by the applicant.
– The assessed financial need.
– The environmental benefits.
– Minimum value for money criteria of the administrative body.
2.12 Payment of grant
For each four week railway period, the REPS payable will be the eligible amount,
which is equal to the contractual unit rate multiplied by the eligible volume moved
during the period.
Each contract will include an annual volume cap and once this has been reached, no
further grant will be payable that year. It is permitted to make applications for
additional volume for existing flows contracted through the REPS scheme. These will
be assessed alongside any applications for new traffic flows (and as part of a bid
round process if one is operating).
REPS is paid in arrears (i.e. once the traffic has moved). Claims for REPS must be
submitted on a standard form, supported by evidence (derived from industry recording
systems) of the traffic that has moved during the period. Applications for grant will
need to provide details of how this evidence will be provided.
Contracts will contain a time limit in which claims for payment must be made. Claims
made after the deadline stated in the contract may not be paid.
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Grant will normally be paid within 20 working days of a complete claim for payment
and full supporting documentation being received.
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2.13 Clawback
The traffic moving under the REPS contracts will be closely monitored through the
periodic payments. Where traffic levels are lower than the forecasts provided by the
grantee at the time of the agreement of the contract (and approved by the
administrative body), adjustments may be made in order to release budget for
reallocation. This will ensure the effective control of the budget and maximise the
amount of benefit that can be purchased through the scheme. The decision on whether
clawback will be pursued will be made following the regular formal contract reviews,
as defined in the contract.
The administrative body has powers to clawback volumes if, at the time of each
formal review, traffic volumes fall 5% or more below the approved forecasts. In such
a case a review will be undertaken, and the administrative body may, at its discretion,
reduce the contracted volumes for the flow concerned by up to 100% of the projected
shortfall.
Any such reductions will be made for the grant year in question, and for all future
years of the contract. Grantees will be given the opportunity to describe any external
factors beyond their control that may have affected the volumes moved, and the
administrative body will consider whether these should be taken into account.
2.14 Business transfers
The market for the movement of freight is competitive and it is possible that the
beneficiary of a grant contract may lose some or all of the respective business to a
competitor. For example, the volumes for a particular flow covered by a REPS
contract held by a freight operating company might be based on an agreement with a
particular customer. For whatever reason this customer might subsequently decide to
move its business to a competing freight operator.
The entitlement to REPS does not automatically transfer in such cases, and the
prospective beneficiary must apply for REPS in the usual way if they wish to secure
an offer of grant over the longer term. However, the appropriate administrative body
will seek to facilitate smooth transfers where appropriate, and it will consider re-
allocations within REPS on a temporary basis outside of any formal bid round
process. This will be undertaken on a case by case basis at the sole discretion of the
administrative body.
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3 Rail Environment Benefit Procurement
Scheme (Bulk)
3.1 What is REPS (Bulk)?
The scheme follows on directly from the Track Access Grant (TAG) scheme that
operated until March 2007.
For REPS (Bulk) each case is assessed individually. There are no standard rates and
the value of the environmental benefits and/or the financial need will limit the grant.
3.2 Eligible traffic
Traffic which moves on railway infrastructure as defined in the Railways
Infrastructure (Access and Management) Regulations 2005 is eligible for
consideration for REPS (Bulk), other than set out in 3.3 (below).
3.3 Ineligible traffic
REPS (Bulk) will not be paid if:
– The traffic is eligible for REPS (Intermodal).
– The best alternative mode of transport is other than by road (e.g. coastal
shipping).
– The service can be commercially justified without REPS (Bulk) or would
proceed in any event without it.
– Commitments have been entered into before REPS (Bulk) has been approved
(e.g. if there is an existing contract for freight haulage by rail).
– The use of rail is a planning or other legal requirement on the site from where the
freight is to be carried. However, situations where without REPS (Bulk) the
freight would be moved by road to or from a different site rather than the one
restricted to rail can be considered.
3.4 How does REPS (Bulk) work?
REPS (Bulk) works on the principle that a traffic flow is entitled to support if:
The environmental benefits justify it:
Environmental benefits measure the effect of removing freight from GB roads. The
benefits are calculated using set rates called Sensitive Lorry Miles (SLM) which
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quantify the value of removing lorries off GB roads. The environmental benefit
calculations have to be adjusted to take into account the environmental costs
(disbenefits) of the road legs to and from rail terminals where these occur.
The cost of using rail is greater than the cost of road (financial need):
The difference between the door to door cost of using road and the door to door cost
of a rail based solution. REPS (Bulk) support cannot exceed the financial need of any
flow of traffic.
3.5 Calculation of environmental benefits
The environmental benefits are calculated by taking the tonnage which is committed
to rail over an agreed number of years and by working out how many lorry journeys
this will remove from the road. Standard rates (SLM) are then used to calculate the
value of the benefits. The environmental benefits of the application can be calculated
using the on-line calculator (see Section 5 for website address). An example of how
the environmental benefits are calculated can be found in Annex 4.
It is for the applicant to work up the full environmental benefit calculations in the first
instance. The calculations will then be assessed in detail by the appropriate
administrative body.
3.6 The financial appraisal
The financial case is calculated by comparing the total costs of the rail-based solution
with the total costs which would be incurred if the traffic were moved by road. REPS
(Bulk) can only be given to make the costs of the rail option equal to those of the road
alternative. An example and a further explanation of how the financial case is
calculated can be found in Annex 5.
Capital investment can only be included in the REPS (Bulk) financial appraisal up to a
value of 1% of the total door to door costs of the rail option, up to a maximum of
£30,000. Only those capital items that are eligible for FFG can be included in the
financial appraisal. In instances where the capital investment required exceeds
£30,000, an application for FFG should be made in parallel with the application for
REPS (Bulk).
It is for the applicant to work up the full financial need calculations in the first
instance. These will need to be fully supported by evidence to substantiate these costs.
The calculations will then be assessed in detail by the appropriate administrative
body.
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3.7 Who can apply?
Although any company may apply for REPS (Bulk), it is payable only to the goods
service operator of the service in question (the goods service operator is the Freight
Operating Company (FOC) who is responsible for the payment of the access charge to
Network Rail but is not necessarily the train operator if train haulage is subcontracted
to another operator).
It is strongly recommended that the application for REPS (Bulk) is made by the goods
service operator. If the goods service operator does not submit the application they
will need to be closely involved as the application is assessed.
Due to the time and cost associated with assessing applications for REPS (Bulk),
some administrative bodies may stipulate a minimum application value below which
applications may not be accepted. The contacts in Section 5 can provide further
advice.
3.8 Can I apply for REPS (Bulk) if I am tendering for work?
You may intend to tender for a contract and want to include a rail option that requires
REPS (Bulk) for some or all of the work.
You can apply for grant in such circumstances but you will not be able to receive an
offer of grant until you have won the contract. You will therefore need to work up a
fully costed road option to enable a proper rail and road comparison to be made.
However, applicants should be aware that the administrative body may decide that, as
the business is in effect speculative, that it would be more appropriate to allocate
funds to other applications that have a greater chance of delivering environmental
benefits. In such circumstances funding may be restricted or even declined.
3.9 Traffic commitment
The administrative body can only pay REPS if it is satisfied that, if grant was not
provided, the freight in question would go by road, and also that it is in the public
interest for the freight to be carried by rail. To demonstrate this, there needs to be a
soundly based prediction of the type and quantity of goods that will be conveyed by
rail.
Where the freight being moved is third party consignments, it may not be possible to
secure a contract from that party and forecasts are likely to be less reliable. In such
cases, the administrative body will take a view on the robustness and accuracy of the
forecast tonnage and the strength of any third party assurances. This may result in less
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volume than was applied for being contracted or the application for grant being
rejected.
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4 Rail Environmental Benefit Procurement
Scheme (Intermodal)
4.1 What is REPS (Intermodal)?
REPS (Intermodal) is designed to support the movement of intermodal containers by
rail in Great Britain. The scheme provides continued support for the sustainable deep-
sea, short-sea and domestic intermodal container business that moves by rail. It
follows on directly from the Company Neutral Revenue Support scheme that operated
between April 2004 and March 2007.
4.2 Eligible traffic
REPS (Intermodal) is available to all traffics carried in standard intermodal units
(containers, swapbodies or piggyback trailers) on railway infrastructure as defined in
the Railways Infrastructure (Access and Management) Regulations 2005, with the
exception of Channel Tunnel traffic and those commodities highlighted in Table 1
(below).
Examples of services eligible for REPS (Intermodal) grant are:
– A service conveying deep-sea containers/tanktainers from a port to customers in
an inland city.
– A service conveying supermarket products in containers between two
distribution depots within Great Britain.
4.3 Ineligible traffic
REPS (Intermodal) is not available for the movement of non-intermodal traffic. REPS
(Intermodal) is also not available to companies moving bulk commodities in full or
part trainload services where the party has chosen to use an intermodal unit. This is
because the cost of conveying such traffic is usually different to the generalised costs
used in the formation of the REPS (Intermodal) rates. These services are also
normally viable by rail and REPS (Intermodal) is not therefore required. The
administrative body responsible for the scheme can advise on other types of grant
support for traffic which is ineligible for REPS (Intermodal). In most cases the
alternative will be the REPS (Bulk) scheme. Traffic through the Channel Tunnel is not
eligible for REPS (Intermodal).
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Table 1: Examples of commodities that are not eligible for REPS (Intermodal).
Automotive Finished cars/vans. Also includes car parts/panels where
flows typically move in clearly defined part or full
trainload volumes.
Chemicals Where flows typically move in clearly defined part or full
trainload volumes.
Conventional All commodities. wagonload traffic.
wagonload traffic
Construction materials Cement, clay, stone, granite, sand, timber etc.
Metals Coil, bar, aluminium, scrap etc.
Minerals Including coal, lime potash, gypsum, rock salt etc.
Paper and paper products Where flows typically move in clearly defined part or full
trainload volumes.
Petrochemicals Oil etc. Where flows typically move in clearly defined
part or full trainload volumes.
Waste Industrial, domestic, nuclear etc. Where flows typically
move in clearly defined part or full trainload volumes.
It is recognised that there will be traffic that does not easily fit into the commodity
descriptions highlighted in the table above. In these situations the appropriate
administrative body will review the economics of the rail operation and compare it to
the economics of the road alternative to determine eligibility.
Ultimately, determination of whether the traffic is eligible for REPS (Intermodal) is at
the appropriate administrative body’s discretion.
4.4 How does REPS (Intermodal) work? The scheme divides Great Britain into
18 zones (Annex 1). Eligible flows attract a maximum grant rate relating to each
container moved between two specific zones, whether empty or full. The REPS
(Intermodal) rates are the same for all intermodal units which are 20’ or more in size.
There are two sets of rates:
Port
Where units are loaded straight to rail at a port, trunk hauled by rail, and then
delivered by road to the final customer. These services share the common
characteristic of one road leg. The maximum port rates are presented in Annex 2.1.
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Domestic
Where units are delivered by road to a rail terminal, trunk hauled by rail, and then
delivered by road to the final customer. These services share the common
characteristic of two road legs. The maximum domestic rates are presented in Annex
2.2.
In circumstances where there are intermediate stages to the rail journey (e.g. the
container is loaded onto rail at a port or terminal and then transferred to another rail
service before reaching its final rail destination), eligibility and payment of grant is
determined against the actual origin and final destination of the container.
4.5 How the maximum rates were calculated
The maximum rates are based on the principle that a traffic flow is entitled to support
if:
The environmental benefits justify it:
Environmental benefits measure the effect of removing freight from GB roads. The
benefits are calculated using set rates called Sensitive Lorry Miles (SLM) which
quantify the value of taking lorries off GB roads. The environmental benefits have
been adjusted to take into account the environmental costs of the road legs from rail
terminals where these occur.
The environmental benefits between all zones for both Port and Domestic traffic are
shown in Annex 3. These environmental benefit tables are important for applicants as
they are the basis on which value for money calculations are made.
The cost of using rail is greater than the cost of road (financial need):
The difference between the door to door cost of using road and the door to door cost
of a rail based solution. REPS (Intermodal) cannot exceed the financial need of any
flow of traffic.
No REPS (Intermodal) payment can be made in excess of the available environmental
benefits, the financial need or the minimum rate to satisfy the value for money criteria
(if one is in operation).
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4.6 How much grant will I get?
The rates described in Annex 2 are the maximum rates that can be received between
the origin and destination zones of the rail flow. An applicant can apply for a rate
below the maximum at their sole discretion. Examples of services eligible for REPS
(Intermodal) are:
a. Movement of containers between the Port of Felixstowe and Birmingham
This flow of traffic attracts a port REPS (Intermodal) rate. The maximum grant rate
for this flow, between regions 2 and 14, is £37 per container movement as shown in
the port rates table in Annex 2.1.
b. Movement of containers between the Port of Southampton and Durham
This flow of traffic would not receive any grant as the maximum grant rate for this
flow, between regions 17 and 6, is £0 per container movement as shown in the port
rates table in Annex 2.1.
c. Movement of containers between Daventry and Mossend.
This flow of traffic attracts a domestic REPS (Intermodal) rate. The maximum grant
rate for this flow, between regions 14 and 8, is £36 per container movement, as shown
in the domestic rates table in Annex 2.2
Applicants should note Paragraph 2.6 which explains how grants may be prioritised.
Applicants should also seek guidance from the appropriate administrative body as some
bodies have minimum value for money thresholds that may prevent offers of grant being
made at the full published rate.
4.7 Who can apply?
Any company, whether or not owned or controlled by UK nationals, can apply for
support under the scheme if it is acting as the operator or contractor of an eligible rail
service.
It is a requirement for REPS (Intermodal) that the support is paid to whoever the
contracting parties propose as taking the full financial risk of running the service. We
expect that in many cases this would be the freight operating company, although it
could be any party in the supply chain who is taking the full demand risk for the
service. In such cases, the appropriate administrative body will require a letter from the
freight operator confirming their agreement to the arrangement.
4.8 Additional volume requirements
As set out in 2.12, contracts for REPS (I) will have an annual volume cap above which
no grant can be paid. Requirements for additional volumes will normally be handled as
a new application and as part of a bidding round process if one is in operation.
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No re-allocation of volumes between traffic flows within a contract is permitted except
in rail period 13. Rail period 13 adjustments (year end) can be made in retrospect
where a limited proportion of a contracted annual volume of a flow can be transferred
to another contracted flow. The purpose of this process is to discourage over estimation
of volumes on all flows, and to simplify the processes around any final bid round in
any given year.
However, the following restrictions operate:
– Transfer of volume must provide the administrative body with the same or
better value for money.
– Not more than 5% of an annual volume can be added or taken away from any
given flow.
– The overall monetary value of the contract cannot be exceeded.
4.9 Short term temporary arrangements
There may be occasions where there is a need to make temporary arrangements that
cannot be handled in the normal application process. This could include an instance
where a railway line or a port was to close on a temporary basis due to an incident, or
a key supplier was unable to provide a service meaning that the service was diverted.
These will be considered on a case by case basis once the administrative body is made
aware of an issue.
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5 Further information & contacts
Administrative bodies
England
Department for Transport
Freight Grants Team
Zone 2/24
Great Minster House
76 Marsham Street
London
SW1P 4DR
Tel: 020 7944 6847 / 6848 / 2477
Wales
Welsh Assembly Government
Transport Wales
Rail Unit
Cathays Park
Cardiff
CF1 3NQ
Tel: 02920 826169
Scotland
Scottish Government
Transport Directorate
Victoria Quay
Edinburgh
EH6 6QQ
Tel: 0131 244 0575 / 1526
Website links
Department for Transport: www.dft.gov.uk
Scottish Government: www.scotland.gov.uk
Welsh Assembly Government: www.wales.gov.uk
Environmental benefit calculator: www.dft-eb-calculator.co.uk
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Annex 1: Map of zones for REPS (Intermodal)
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Annex 2: REPS (Intermodal) grant rates
Table A2.1 Port rates (maximum)
Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 37 23 22 22 0 0 0 0 0 21 60 49 39 44 36 15 8
2 37 51 22 21 0 0 0 0 0 8 33 27 37 31 0 26 40
3 23 51 37 43 64 16 0 0 0 58 60 35 16 47 27 31 35
4 22 22 37 3 43 43 0 0 0 27 44 28 29 49 0 0 2
5 22 21 43 3 25 58 35 0 0 17 33 41 23 45 0 6 20
6 0 0 64 43 25 46 35 0 0 47 29 0 24 0 0 0 0
7 0 0 16 43 58 46 0 44 19 7 24 0 48 0 0 0 0
8 0 0 0 0 35 35 0 45 62 15 29 0 0 0 0 0 0
9 0 0 0 0 0 0 44 45 62 0 0 0 0 0 0 0 0
10 0 0 0 0 0 0 19 62 62 0 0 0 0 0 0 0 0
11 21 8 58 27 17 47 7 15 0 0 5 45 46 53 24 22 19
12 60 33 60 44 33 29 24 29 0 0 5 70 34 52 24 52 41
13 49 27 35 28 41 0 0 0 0 0 45 70 40 0 12 15 34
14 39 37 16 29 23 24 48 0 0 0 46 34 40 21 34 51 46
15 44 31 47 49 45 0 0 0 0 0 53 52 0 21 12 10 34
16 36 0 27 0 0 0 0 0 0 0 24 24 12 34 12 38 26
17 15 26 31 0 6 0 0 0 0 0 22 52 15 51 10 38 14
18 8 40 35 2 20 0 0 0 0 0 19 41 34 46 34 26 14
Table A2.2 Domestic rates (maximum)
Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 42 35 29 24 49 3 0 0 0 66 54 8 31 3 46 0 7
2 42 37 74 75 27 0 0 0 0 81 81 46 67 42 8 51 28
3 35 37 27 33 75 61 4 0 0 50 52 41 3 38 45 39 22
4 29 74 27 0 33 56 29 0 0 16 34 55 18 37 12 51 45
5 24 75 33 0 13 50 49 0 0 4 22 50 11 31 28 46 62
6 49 27 75 33 13 37 56 30 6 37 48 20 43 42 4 11 0
7 3 0 61 56 50 37 0 46 64 0 12 10 43 36 0 0 0
8 0 0 4 29 49 56 0 36 59 0 16 0 36 10 0 0 0
9 0 0 0 0 0 30 46 36 82 0 0 0 0 0 0 0 0
10 0 0 0 0 0 6 64 59 82 0 0 0 0 0 0 0 0
11 66 81 50 16 4 37 0 0 0 0 0 53 36 45 51 72 63
12 54 81 52 34 22 48 12 16 0 0 0 63 23 43 66 59 62
13 8 46 41 55 50 20 10 0 0 0 53 63 30 0 0 1 11
14 31 67 3 18 11 43 43 36 0 0 36 23 30 8 20 44 41
15 3 42 38 37 31 42 36 10 0 0 45 43 0 8 0 0 13
16 46 8 45 12 28 4 0 0 0 0 51 66 0 20 0 63 48
17 0 51 39 51 46 11 0 0 0 0 72 59 1 44 0 63 0
18 7 28 22 45 62 0 0 0 0 0 63 62 11 41 13 48 0
NOTE: The grant rates presented in the table above are the maximum rates that can be obtained for the movement of a container. Actual rates to be contracted will be dependent on the rate applied for and the relevant administrative body’s value for money and
prioritisation procedure.
For those flows coloured green SE is the lead administrative body. For those flows coloured black WAG is the lead administrative body. For all other flows DfT is the lead administrative body.
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Annex 3: REPS (Intermodal) environmental benefits
Table A3.1 Port environmental benefits
Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 37 23 59 64 99 90 97 156 175 83 72 49 39 44 88 15 8
2 37 51 93 90 125 147 153 212 230 118 106 61 77 57 130 58 40
3 23 51 37 43 81 104 113 169 188 58 60 50 16 47 58 46 35
4 59 93 37 3 43 68 78 135 153 27 44 68 29 50 66 62 70
5 64 90 43 3 25 58 62 120 138 17 33 64 23 45 61 58 76
6 99 125 81 43 25 46 88 130 148 47 63 108 73 90 104 103 110
7 90 147 104 68 58 46 0 59 78 7 24 82 56 63 78 95 132
8 97 153 113 78 62 88 0 45 66 15 30 89 64 73 87 102 141
9 156 212 169 135 120 130 59 45 86 74 88 148 124 130 145 161 199
10 175 230 188 153 138 148 78 66 86 93 106 166 139 148 163 179 218
11 83 118 58 27 17 47 7 15 74 93 5 66 46 53 64 83 94
12 72 106 60 44 33 63 24 30 88 106 5 70 34 52 78 72 83
13 49 61 50 68 64 108 82 89 148 166 66 70 40 0 12 15 34
14 39 77 16 29 23 73 56 64 124 139 46 34 40 21 34 51 52
15 44 57 47 50 45 90 63 73 130 148 53 52 0 21 12 10 34
16 88 130 58 66 61 104 78 87 145 163 64 78 12 34 12 58 94
17 15 58 46 62 58 103 95 102 161 179 83 72 15 51 10 58 14
18 8 40 35 70 76 110 132 141 199 218 94 83 34 52 34 94 14
Table A3.2 Domestic environmental benefits
Zone 1 2 3 4 6 5 7 8 9 10 11 12 13 14 15 16 17 18
1 42 35 29 24
71 83 88 149 168 66 54 8 31 3 46 0 7
2 42 37 85111 142 145 206 224 103 91 46 67 42 90 51 28
75
3 35 37 27 75 92 102 157 176 50 52 41
33 3 38 45 39 22
4 29 85 27 33 56 65 122 140 16 34 55 18 37 53 51 56
0
5 24 75 33 0 13 50 49 106 125 4 22 50 11 31 48 46 62
6 71 111 75 33 13 37 83 119 139 37 56 97 66 78 91 92 98
7 83 142 92 56 50 37 0 46 65 0 12 69 43 50 64 88 124
8 88 145 102 65 49 83 0 36 59 0 16 75 51 60 73 93 133
9 149 206 157 122 106 119 46 36 82 62 74 135 111 117 133 153 193
10 168 224 176 140 125 139 65 59 82 81 93 154 127 135 151 172 211
11 66 103 50 16 4 37 0 0 62 81 0 53 36 45 51 72 81
12 54 91 52 34 22 56 12 16 74 93 0 63 23 43 66 59 68
13 8 46 41 55 50 97 69 75 135 154 53 63 30 0 0 1 11
14 31 67 3 18 11 66 43 51 111 127 36 23 30 8 20 44 41
15 3 42 38 37 31 78 50 60 117 135 45 43 0 8 0 0 13
16 46 90 45 53 48 91 64 73 133 151 51 66 0 20 0 63 70
17 0 51 39 51 46 92 88 93 153 172 72 59 1 44 0 63 0
18 7 28 22 56 62 98 124 133 193 211 81 68 11 41 13 70 0
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Annex 4: Calculation of environmental
benefits for REPS (Bulk)
Road values
Based on published Sensitive Lorry Mile vales, the Administrative Body will value the
environmental benefits of grant applications by applying the following rates per lorry mile to
road journeys avoided over the qualifying routes:
High Medium Low Trunk & Other Trunk & Other
Principal Principal
69p 27p 4p £1.38 £1.74 53p 45p
Calculation of environmental benefits
An online calculator of environmental benefit values for use by applicants is available at
www.dft-eb-calculator.co.uk. This bespoke application calculates the value of a route in
accordance with the road values above. The environmental benefit calculator has been
developed using commercial route planning software similar to that used by other on-line
route planning applications. It has been modified to give the ability for users to replicate
accurately the route used by their vehicles. Measurements are recorded for each of the
categories of public road listed above. The mileage for each category is then multiplied by
the appropriate road value, producing the route valuation. Benefits per annum are obtained
by multiplying the number of lorry trips by the route valuation.
Annual tonnage divided by average payload of lorries gives the number of loaded trips, but
lorries will have to return either empty or with a ‘backload’. In the case of empty returns or
backloads associated with the scheme, then total lorry trips is equal to the loaded journeys
multiplied by 2. If there are backloads not associated with the scheme (i.e. lorry journeys will
continue to happen), total lorry trips will be correspondingly lower.
Example
The following example shows a scheme moving 15,000 tonnes in year one, and then 30,000
tonnes per year for a further 2 years. The lorries in this case return empty and each fully
laden lorry carries 24 tonnes of cargo.
Firstly, the route valuation is established - this is the environmental benefit of each lorry
trip.
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High congested 75 69p £51.75
motorway
Medium congested 50 27p £13.50
motorway
Low congested 15 4p £0.60
motorway
Conurbation – trunk 5 £1.38 £6.90
and principle
Rural and urban – 25 45p £11.25
other
Total £84.00
The second stage is to look at the number of lorry trips avoided, including the empty
backloads, and work out the total value of the benefits.
0 – – – –
1 15,000 1,250 £84.00 £105,000
2 30,000 2,500 £84.00 £210,000
3 30,000 2,500 £84,000 £210,000
Total 75,000 6,250 £525,000
Maximum grant potential
For the worked example the total environmental benefits are valued at £525,000 over 3 years.
However, the grant potential is not an indication of the level of grant that the administrative
body will offer. It is the ceiling that the environmental benefits will allow, above which no
offer can be made.
The administrative body draws on other elements of the application to determine the exact
amount of its grant offer, including the financial appraisal, value for money, prioritisation and
budget availability.
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Annex 5: Financial appraisal of REPS (Bulk)
Introduction
REPS (Bulk) can only be paid in circumstances where the proposed rail traffic would not be
financially viable without a grant. This Annex explains how to calculate the amount of grant
that makes rail as financially attractive as road. This can only be a general guide; it may not
cover the entire issues specific to each scheme.
The financial appraisal should include a year-by-year breakdown of the operating costs
incurred under the rail scheme and the road alternative. The case should be conducted over
the expected length of commitment to rail, and be consistent with the time period used to
calculate the environmental benefits of the scheme (see Annex 4). This can not exceed three
years and cannot stretch beyond the 31st March 2010 (the extent of the state aid clearance for
the scheme). However, where the tonnage volumes and cost per tonne of the road and rail
options are constant over the length of the grant period, a single period (e.g. one year) model
can be used.
All operating costs should be expressed in ‘real’ (i.e. present day) prices to exclude the effects
of general price inflation. The analysis should not include anticipated movements in real costs
over time. Where costs are incurred in currencies other than Sterling they should be converted
into Sterling values at current exchange rates.
Once the relative costs of the road and rail alternatives over the duration of the proposed grant
have been established, the financial need for grant can be calculated. This can be calculated
by simply subtracting the cost of the road option from the rail option.
Relevant information
The financial appraisal should include all relevant information on tonnage and costs
associated with the project, supported by fully evidenced documentation to substantiate the
figures. This will usually include the following:
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Tonnage
• Forecast tonnage for each flow in each year of the appraisal (supported by
information/evidence to verify the tonnage levels).
Cost of commodity
• Evidence of the cost of the commodity to be moved for both the road and rail
alternative. In most cases the cost will be the same, but in some cases the costs may
differ (e.g. where the source of the commodity differs between the road and rail
options).
Road option
• Road haulage costs (supported by at least two written road haulage quotations or
current invoices) for each flow.
• Any other costs not covered above which should include loading/unloading costs,
administration etc.
Rail option
• Rail haulage costs (supported by a written rail haulage quotation) for each flow or set
of flows. This must be verified with the owner of the traffic.
• Any other costs not covered above which should include loading/unloading costs,
maintenance, administration etc.
FOC costs
Freight Operating Companies (FOCs) will also be asked to provide information on the
workings that have been used to arrive at the haulage charges levied to the owner of the
traffic (including the Track Access Charge calculations for each flow). This is to ensure that
the profit margins in the rail rate are acceptable and not excessive. This is particularly
important in markets where little or no competition exists.
Calculation of financial need
The following analysis provides an example of the financial appraisal for REPS (Bulk). A
copy of the standard spreadsheet can be obtained from the relevant administrative body on
request and should be used to support all applications for REPS (Bulk).
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Final comments
The administrative body will examine all elements of an application before reaching a final
decision. Any offer of grant remains at the discretion of the appropriate administrative body.
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REPS (BULK) FINANCIAL ROAD RAIL
APPRAISAL
07/08 08/09 09/10 07/08 08/09 09/10
TONNAGE 15,000 30,000 30,000 15,000 30,000 30,000
COST OF per tonne 8.00 8.00 8.00 4.00 4.00 4.00
COMMODITY - £ total 120,000 240,000 240,000 60,000 120,000 120,000
HAULAGE COST - £ per tonne 9.50 9.50 9.50 6.50 6.50 6.50
total 142,500 285,000 285,000 97,500 195,000 195,000
ONWARD ROAD per tonne 0 0 0 4.00 4.00 4.00
COST - £ total 0 0 0 60,000 120,000 120,000
LOADING / per tonne 0 0 0 1.00 1.00 1.00
UNLOADING total 0 0 0 15,000 30,000 30,000
COSTS - £
TAC - £ per tonne 0 0 0 3.50 3.50 3.50
total 0 0 0 52,500 105,000 105,000
OTHER COSTS per tonne 0 0 0 0 0 0
(PLEASE SPECIFY) total 0 0 0 0 0 0
-£
OTHER COSTS per tonne 0 0 0 0 0 0
(PLEASE SPECIFY) total 0 0 0 0 0 0
-£
OTHER COSTS per tonne 0 0 0 0 0 0
(PLEASE SPECIFY) total 0 0 0 0 0 0
-£
TOTAL COSTS - £ per tonne 17.50 17.50 17.50 19.00 19,000 19.00
total 262,500 525,000 525,000 285,000 570,000 570,000
2007/08 2008/09 2009/10 TOTAL
ROAD vs RAIL per tonne 1.50 1.50 1.50 112,500
(FINANCIAL NEED) total 22,500 45,000 45,000
-£
ENVIRONMENTAL total 105,000 210,000 210,000 525,000
BENEFITS - £ per tonne 7.00 7.00 7.00
MAXIMUM GRANT per tonne 1.50 1.50 1.50 112,500
-£ total 22,500 45,000 45,000
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