Freight Transport - Delivering the Economy 25 July 2007

The Freight Transport Association has told new Secretary of State for Transport Ruth Kelly that efficient freight transport is of vital importance to both the economy and the environment and that it is essential for the Government to create a transport operating environment fit for the purpose. In a letter to Ms Kelly, FTA Chief Executive Theo de Pencier has listed a series of expectations which are required of the Government by the supply chain in order that freight transport can be conducted in the most efficient, economic and environmentally friendly way possible. These are: - Understand, respect and champion the role and importance of logistics and the UK supply chain. Appreciate the unique skills and expertise which drives the availability of a massive range of goods and services at an equally massive number of locations throughout the UK, serving both the economy and the consumer. - Understand and help us overcome the challenges of the near and medium term future and the prospect of a 30 per cent increase in imports together with a 20 per cent increase in road traffic, resulting in road and rail congestion which is itself both wasteful of everybody's time and of an enormous element of the nation's wealth. Congestion is the curse of the UK supply chain. - Secure long-term, sustainable and stable financing for transport infrastructure projects which both recognise and provide for a sound economic and social return, to the benefit of our 21st century society and economy. - Develop integrated and sustainable port policies which reflect the multi-modal nature of supply chains - sea, rail, road - and the increased globalisation of the British economy. - Progress the present proposals for planning reform to enable delivery of essential transport infrastructure developments as soon as possible without the senseless waste of time and money which result from the current system. - Encourage, promote and nurture the ongoing contribution to both air quality improvements, carbon reduction and road safety by advanced technology. The last 20 years have seen outstanding progress in these areas and the next 20 years can achieve similar success. - Recognise and provide for our industry to enjoy access and facilities to enable the operation of collections and deliveries in both urban and rural environments. Cities cannot function without the delivery of supplies; agriculture requires the collection of its produce; goods do not arrive at shops, offices, factories or anywhere else without the operation of a delivery vehicle. These needs must be acknowledged, tolerated and provided for by central and regional government, and by local authorities. Theo de Pencier said, 'An efficient supply chain underpins the economy and makes a real contribution not only to the wealth of the nation, but to the lifestyle and comfort of the whole population. UK transport and distribution is a success story that should be recognised, celebrated and assisted. 'Ruth Kelly and her colleagues have a massive responsibility to support the freight transport industry and FTA and its members wish her well in this challenging role.'

Diesel duty: Don't add to industry's woes warns FTA 19 July 2007

The Freight Transport Association has told Exchequer Secretary Angela Eagle that she must abandon plans to increase fuel duty by 2 pence per litre from 1 October 2007. Since the end of January 2007 bulk diesel prices paid by hauliers have risen by over 5 pence per litre as world oil prices have soared from $60 per barrel to $76 per barrel - less than $2 shy of their all-time high. Fuel costs alone have raised annual operating costs for a 40 tonne artic by £2,300. With 30 per cent of hgv operating costs fuel related, industry is seeing its road transport costs spiralling at an annual rate of over 5 per cent from this cost element alone. Simon Chapman, FTA's Chief Economist said, 'The planned fuel duty increase of 2 pence per litre may have seemed reasonable to the Chancellor at the time of the Budget when oil prices were at $60 per barrel. However, the policy now looks out of touch bearing in mind recent fuel price changes. The Chancellor should announce a change of plan, recast his revenue budgets, and signal a freeze in fuel duty until 1 April 2008 at the earliest. 'UK operators already face far higher fuel prices than road carriers based elsewhere in the EU. The current UK bulk diesel price of 77.9ppl compares to 60.1ppl in Germany, 57.1ppl in France, 54.1ppl in the Netherlands and 50.5ppl in Belgium. Such a wide cost differential to a major cost input into the industry places UK hauliers at a marked cost disadvantage compared to foreign carriers providing haulage services in the UK on a cabotage basis. Ratcheting up fuel prices still further will undermine competitiveness and inject inflationary pressure into industry's cost base.'

FTA welcomes interim ports policy review - but inland connections funding still to be addressed 19 July 2007

The Freight Transport Association welcomes the publication today of the Department for Transport's Interim Ports Policy Review paper, and supports its contents. However, the most important issue facing the development of Britain's ports - inland connections - has yet to be dealt with. It has been held over until the full statement is released in the autumn so that the policy will fit with the Government's response to the Eddington Report on Britain's transport needs. FTA's Head of Global Supply Chain Policy, Christopher Snelling said, 'Hopefully it is a good sign that the Government has held back its decisions on inland connections, to co-ordinate with its response to Eddington. The Eddington Report was clear about the significance of international gateways to the future of the UK economy, and so we hope this will inform DfT's thinking in that area.' FTA wants the Government to use the statement in the autumn to set out its policy for funding the enhancement to publicly owned, open access transport infrastructure that is needed with port growth. Snelling said, 'We have already seen the introduction of a surcharge on imports at the Port of Felixstowe to raise the £85 million needed to fund rail enhancements as far away as Yorkshire. Unless the Government sets out a clear policy on funding inland infrastructure we could see this happening at ports across the country in future. This would add costs to the supply chain into the UK, increasing the price of goods in the shops.' FTA believes the Interim Ports Review document itself is a good set of proposals for the needs of the UK. The most significant statement in the Review is the confirmation that Government, as called for by FTA, will leave decisions over where and when to invest in port development to the market - this should ensure that the right facilities are built for the needs of British businesses and consumers. FTA also supports the proposals for regular demand forecasts to be produced to help inform industry and other planners in the transport sector, and for the final Ports Review to be used as the basis of a National Policy Statement on ports, as set out in the Planning White Paper.