British businesses are saving £1.5 billion a year by choosing to transport their goods on railway lines.

Research by the Rail Delivery Group (RDG) underlines just how cost-effective a means of transport it is, as it cuts down on the number of lorries on the UK's roads.

This also has wider environmental and social benefits, as there is less pollution and traffic; indeed more than 7.6 million road journeys were saved by transporting goods by rail last year. 

Peter Maybury, chairman of the RDG freight group, said high levels of private sector investment have helped to drive innovation in the sector.

"Rail freight helps keep shop shelves stocked and the power on while taking thousands of lorries off the roads, reducing harmful emissions and keeping Britain competitive in the global economy," he added.

Since rail freight was opened up to the private sector in the mid-1990s, longer, more efficient trains have been developed that have the potential to carry an average of 50 per cent more cargo than ten years ago.