Business history shows that the logistics world is prone to choke points and the greatest recent example is the 2011 Japanese tsunami which left globalised plants idled for want of JIT supplies because Japan was a choke point for 95 key supplies for the auto, communications and photographic industries, in particular. Britain, through its current ports set-up, shows unacceptable choke risks, especially in the light of Brexit angst and so what should be done to lessen the risks?
It is argued that Britain’s transport system is no longer fit for purpose and needs rebalancing. The port of Dover accounts for nearly one third of Britain’s trade with the EU and is prone to delays and disruption, like the striking French ferry workers in 2015, leading to 17-mile lorry jams and costs of £250 million a day. While at one time over reliance on Dover road freight may have made financial sense, those conducive conditions no longer apply. Even if Britain strikes a Brexit deal with the EU there are still compelling ecological, safety, political and even economic reasons why the current transport flows should be changed, according to ABP Ports, which accounts for a quarter of the UK ports trade.
There are already signs that shippers are moving cargo to alternative routes like Hull and Immingham, while in Antwerp, Zeebrugge and Rotterdam they are looking forward to doing much more trade with Britain’s North Sea Ports. “Brexit has made companies re-evaluate supply chains,” said Justin Atkin from Antwerp’s Port. Shippers are also looking for unaccompanied vehicles, which means the shorter sea crossing is no longer necessary, and it may even be cheaper as well, in some cases.
Apart, however, from the direct haulage costs there are other significant cost factors, namely of an ecological and safety nature. The saturated road shipments through Kent, around the M25 and up through the Midlands incur a heavy economic and social cost of congestion, noise, diesel pollution and CO2 emissions, plus road erosion and the 15% of fatal lorry accidents. Research at Hull Logistics Institute shows that moving just 10% of cargo from Dover to the Humber, destined for distribution hubs in the North and Midlands, can save 100,000 tonnes of CO2 a year.
For those shippers who still prefer to use ports close to the London area there is heartening news from recent and ongoing port developments. Within about six months, Tilbury, part of the Forth Ports Group, will open its Tilbury 2 port on a 152-acre site, costing £200 million. It will be the country’s largest unaccompanied ferry port and the country’s biggest construction processing hub. It will also handle two-way trade in cars and an increase in commercial ferry traffic for carrying consumer goods, steel and perishables between Europe and the UK. It will also include a new road/rail connexion for northbound cargo, and a deep-water jetty and pontoon. London Gateway’s container port, with a similar rail connexion for the North, could also take off some of the choke point risks of Dover.
Brexit apart, Britain needs a radical shake-up of its port system and freight links, and if sea and rail can be encouraged to be the default presumption for long haul trade, that would go some way to relieving the shortage of 60,000 drivers in Britain.
Bill Redmond
Features Editor
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