Written evidence from Associated British
Ports
INTRODUCTION
1. Associated British Ports (ABP) welcomes
the opportunity to respond to the call for evidence for the inquiry
regarding the Severn Crossing Tolls. ABP owns and operates the
five ports located in South Wales comprising from the west, Swansea,
Port Talbot, Barry, Cardiff and Newport. ABP also owns and operates
Cardiff Container Line, that provides door-to-door container logistics
between the UK and Ireland.
2. These ports handle some 17 million tonnes
of cargo annually, including a broad range of import and export
cargo and they service a hinterland extending well beyond South
Wales into the Midlands, London, Northern UK, M4/M5 corridor and
the South West.
3. In addition to general cargo trade for
distribution within the hinterland area, several ports service
industry and manufacturing plants located on or near the port
estate. In particular Port Talbot, Barry, Cardiff and Newport
provide essential facilities for such businesses handling both
inbound raw materials and product shipped to markets in the UK,
Europe and globally. These industrial sites in turn also rely
on UK-wide distribution.
4. ABP considers that the Severn Bridges
are a vital link between South Wales and Southern England and
that much of the industry and commerce in South Wales relies on
the existence of the bridges. ABP therefore provides the following
comments in response to the call for evidence.
SUMMARY
5. ABP considers that the charging regime
in future should be consistent with promoting regional business
competitiveness and economic growth as well as supporting carbon
efficient transport choices. With this key objective in mind,
we believe:
— an independent accountable investigation
needs to be conducted to quantify the impact of tolls on the Welsh
economy;
— payment methods should be reviewed to
make use of current technology and consideration given to off-peak
charging arrangements; and
— following the current concession ending,
consideration should be given to aligning tolls with the operational
and maintenance costs of the bridge infrastructure.
We also believe it is essential that any future
charging regime is transparent and proposed increases should only
happen following a period of appropriate consultation with mechanisms
in-place for appeal/arbitration.
THE IMPACT
OF THE
TOLLS ON
THE WELSH
ECONOMY INCLUDING
BUSINESSES, LOCAL
RESIDENTS AND
TOURISTS
5. ABP considers that the level of the current
tolls has a impact on the Welsh economy and adds additional cost
to business and trade operating in South Wales over comparable
businesses elsewhere in the UK. ABP considers that the charging
regime in future should be consistent with promoting regional
business competitiveness and economic growth as well as supporting
carbon efficient transport choices. In order to achieve these
objectives, ABP believes that a robust evidence-based approach
is required to inform future decisions on the charging regime.
Such a requirement should be fulfilled by a detailed and through
assessment of the impacts of the toll on the South Wales economy.
6. Taking into account the key principle
of promoting business competitiveness, ABP feels that it may be
worth giving consideration, in any future study, to the impacts
of the current charging regime, whereby charges are only imposed
in one direction. This is especially relevant when considering
the movement of freight. Whereas the majority of residents, commuters
and tourists will travel over the bridge in both directions, freight
is often not a reciprocal flow and will triangulate around a number
of destinations and the Severn Estuary and therefore particular
routings or operators may only have reason to cross the bridge
in the toll-paying direction for the majority of their business.
This cost will therefore all be met (directly or indirectly) by
only one business, rather than them only meeting the proportion
of cost of the crossing for which their goods are in transit.
7. In other circumstances, for cargo moving
from the area North of the bridge into Wales, it may be cheaper
for the lorry to route via the M50 corridor, although this routing
will result in additional road miles and therefore additional
carbon emissions.
THE CURRENT
LEVEL OF
TOLL PRICES
AND THE
AVAILABLE METHODS
OF PAYMENT
8. ABP understand that the cost of freight
movements over the Severn Bridge are amongst the highest in the
UK. With the increase in charges being linked to RPI, this year
will potentially see large rises in the cost of crossing and these
costs are not directly associated with the ongoing operational
and maintenance costs. Once the current bridge concession reaches
its end, ABP therefore considers that any ongoing charges are
aligned with the operational and maintenance costs of the bridge
infrastructure. Such a charging regime must be transparent and
proposed increases should only happen following a period of appropriate
consultation with mechanisms in-place for appeal/arbitration.
9. ABP considers that the current methods
of payment are inflexible and could be improved to meet business
demands. ABP understands that the installation of credit card
facilities is currently in progress. ABP believes that consideration
should also be given to a more sophisticated charging mechanism
that would allow for variable charging (such as for frequent users
and environmentally cleaner vehicles) and off-peak arrangements
to be put into place.
10. The installation of more up-to-date
technology for the receipt of tolls should also be considered.
One such method would be based on a number plate recognition system.
Such a system, as well as being able to easily implement variable
charging, would also have the added benefit of increasing transport
efficiency and journey times, especially at peak hours. This technology
would also enable accounts for business and individual users to
be easily set up and managed and potentially reduce the administration
time spent by transport operators using the current systems.
THE CURRENT
CONDITION OF
THE BRIDGES
AND THE
COSTS ASSOCIATED
WITH ONGOING
MAINTENANCE
11. ABP considers that the design of the
Second Severn Crossing has greatly assisted in the reduction of
bridge closures due to weather conditions that can have a significant
impact on the cost to business in Wales. The recent closure of
the bridges due to the risk of falling ice however did have an
impact on business in South Wales and efforts should be made to
remove this risk in the future.
12. ABP feel that any ongoing charges, once
the bridge returns to public ownership, should be aligned with
the operational and maintenance costs of the bridge infrastructure.
THE FUTURE
OF THE
BRIDGES AFTER
THE CROSSINGS
HAVE REVERTED
TO PUBLIC
OWNERSHIP
13. ABP feel that any ongoing charges, once
the bridge returns to public ownership, should aligned with the
operational and maintenance costs of the bridge infrastructure
as per the comments in paragraph 9. Consideration should also
be given to peak and off peak charging arrangements to help to
relieve traffic pressure at peak times.
September 2010
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