Select Committee on Environment, Transport and Regional Affairs Appendices to the Minutes of Evidence


Memorandum by the Associated British Ports (RH 46)

  Associated British Ports (ABP) is the United Kingdom's leading ports business. It owns and operates a network of 23 ports and two container terminals. ABP handles through its ports over 120 million tonnes per annum of a wide variety of imports and exports, about a quarter of the UK's seaborne trade, and its customer base includes the majority of the UK's principal industries.

  Through its position within the UK ports network, its contacts within Europe and its customer base, ABP feels that it has a point to make regarding certain issues and the Transport Sub-Committee will be addressing as part of their inquiry into the Road Haulage Industry.

  ABP are encouraged by broad Government proposals to reduce the percentage of freight moved by road, which will contribute to the general health of the national economy and the development of an Integrated Transport Network. A key element to this achieving this shift is the promotion of both rail and seaborne freight transport. ABP take full account of the potential for rail freight in our individual port development plans and believes that major ports such as Southampton and Immingham act as important modal interchanges that can facilitate the generation and development of the rail freight industry. Their future will increasingly lie in their potential as trimodal coastal shipping terminals, and as local Urban Distribution Centres.

  While the shift of freight from road to rail is generally desirable, bottlenecks in the rail network limit the extent to which modal shift to rail can be achieved. ABP have always emphasised the importance of reducing such rail bottlenecks to the UK's major ports. However, such constraints do not apply to sea transport. To bring about a truly Integrated Transport Network there needs to be greater emphasis on promoting a shift of freight from road to water, as well as rail.

  ABP wish to emphasise the following points:

    —  With regard to lorry weight ABP would argue for an increase in maximum lorry weights to 44 tonnes. It is generally accepted that the increase would lead to a reduction in lorry miles, and hence a reduction in road congestion and in greenhouse gas emissions. ABP believe that with future growth of traffic to and from ports road congestion will become a factor that hinders ports operating to maximum efficiency. An increase in lorry weights to 44 tonnes would go some way to easing congestion problems thereby assisting the handling of a substantial part of the nation's trade.

    —  From an environmental point of view there is an argument that suggests that six-axle vehicles with environmentally friendly brakes and suspensions cause less wear on roads than five-axle vehicles at 40 tonnes. Along with the drop in greenhouse gases associated with a reduction in road traffic there are environmental advantages in allowing 44 tonne lorries.

    —  The fact that 44 tonne loads are not transportable by road from UK ports means that container goods being shipped from the far east must be re-packaged in a continental port into loads consistent with those that can be transported in the UK. This additional handling and re-packaging means an increase in price in those goods for the UK consumer. This is further evidence that allowing 44 tonne lorries would be an economically sensible decision.

    —  The present concession allowing 44 tonne lorries to travel to rail terminals, but not ports is difficult to understand as it has an adverse affect on short-sea shipping and does nothing to relieve the congestion around busy ports. Movement of freight by shipping is environmentally superior to either road or rail, but few practical steps have been taken to promote short-sea shipping. There would seem to be a good case, on both environmental and economic grounds, for extending the present concession to journeys to ports. When it is borne in mind that ABP handle 25 per cent of the UK's seaborne trade then it is clearly important that that trade is handled as efficiently as possible. The current distortions will delay further the re-establishment of coastal shipping as a major freight mode.

    —  ABP believe that more needs to be done on the internalisation of costs. Costs are already substantially internalised in shipping (for example ships pay navigation charges and all infrastructure costs are volume related), to a lesser degree in rail. By contrast, road haulage pays fixed fees irrespective of mileage and thus marginal rates per mile are lower. The result of this situation is that shipping finds it more difficult to compete at the margin. ABP suggest that Government should continue to internalise transport costs so as not to distort the competitive balance between rail and sea transport when introducing incentives designed to produce a modal shift from road transport.

February 2000


 
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