The Severn Crossings Toll - Welsh Affairs Committee Contents


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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