Transport CommitteeWritten evidence from TNT Express Services UK & Ireland (PE 49)
We welcome the opportunity to contribute to this enquiry and would like to submit the following written evidence.
Background to TNT Express Services UK & Ireland
TNT Express Services UK & Ireland is the UK’s leading business-to-business express operator delivering up to 150 million items per annum. It has the largest individual share of the national market, employs more than 10,000 people and has an extensive network of 53 strategically located express delivery depots, plus sortation hubs and National Customer Contact Centres.
In addition to its leading role in the business-to-business express delivery market, TNT is also a major provider of end-to-end outsourcing services in the specialised arenas of information solutions, records management, logistics solutions and facilities management.
TNT has impeccable environmental credentials having topped the prestigious Dow Jones Sustainability Index (DJSI) for the past four years and being accredited with the Carbon Trust Standard in 2010. With the largest fleet of zero emission vehicles in the express sector, TNT is committed to reducing its carbon footprint by 40% between 2008–20.
As a strong advocate of corporate responsibility, TNT is the largest benefactor of the children’s charity, Wooden Spoon, having generated donations in excess of £3.25 million since the association started in 1997. Internationally, TNT also partners the United Nations’ World Food Programme providing annual sums of £7.5 million to aid malnourished youngsters in impoverished areas across the globe.
The company has, to date, won an unprecedented 31 Motor Transport Awards in the past 24 years—the “Oscars” of the UK transportation industry.
Established in the UK in 1978, the company has developed its leading position in the time-sensitive express delivery market through organic growth.
TNT Express Services UK & Ireland is a vital component of the newly formed independent company TNT Express N.V. a listed public company which came into being in May 2011 following its demerger from its sister company TNT Mail. It now stands alone as one of the world’s leading express delivery companies.
Response by TNT Express Services UK & Ireland to the Enquiry
We have only responded to those questions, which fall within our area of expertise.
1. How should councils use their revenue from penalty charges, metered parking, car parks and residents’ parking? Should there be more local discretion over how income is used?
Local authorities raise in excess of £1 billion a year from parking fines. Some of the money raised goes into the costs of operating the system. Local authorities are required to report their income from parking fines and charges and must also state what any surplus is spent on. Typically, the revenue from such schemes is greater than the cost of running the scheme and the surplus can be allocated to the public purse. Although the surplus revenue is ring-fenced to be used for transport related expenditure, if a council is judged to be “excellent” by the Audit Commission, the surplus can be allocated to the council’s general budget. It has been reported in the media that some council’s are alleged to have attempted to use parking enforcement as a source of revenue.
It is our view that the use of surplus revenues raised from parking enforcement and charges should be restricted. Funds should be ring-fenced and used for transport related expenditure only, including additional and adequate provision for parking. In particular, council’s should aim to provide additional parking and loading facilities in areas designated as so-called “PCN Hot Spots”. In our experience, hot spots are usually created due to the inadequacy of sufficient parking provision.
2. What impact will new technology, such as cashless parking, parking sensors and CCTV, have on local authority parking enforcement?
Parking Sensors are currently on trial in the City of Westminster (SmartEye and SmartApp). It is claimed that the system will guide drivers to free parking spaces within the City of Westminster, thereby making life easier for motorists and reducing congestion in the area. The sensors on trial in Westminster are operated by Town and City Parking Ltd and made by its parent company, Car Parking Technologies Limited whose main business is the provision of parking enforcement services.
Similar or identical systems are already in use elsewhere outside the United Kingdom. One particular example can be found in Perth, Western Australia where the technology is known as “Meter-Eyes”. The system enables signals to be sent to the nearest civil enforcement officer to capture “over stayers” in paid for parking bays. According to local press reports (source: http://www.watoday.com.au/wa-news/meter-eyes-spy-on-perth-parkers-20090720-dq4q.html), this system produced a staggering 750% increase in parking tickets issued.
Delivery and servicing is vital to the UK’s economy. TNT operates a fleet of over 3,500 commercial vehicles and boasts the largest fleet of environmentally friendly zero emission vehicles in the express industry. TNT drivers receive comprehensive training throughout their employment on parking regulations and the rules concerning loading and unloading. Nevertheless, our annual expenditure on PCN’s is a significant six-figure sum in London alone. We are concerned that the introduction of similar parking technology systems throughout the UK could result in unsustainable constraints being placed on our ability to service the UK economy. We would therefore recommend that safeguards and restrictions be mandated on the uses of such equipment by local authorities.
3. Should parking policy in London be subject to separate provisions and guidance, given, in particular, its large parking revenue surpluses, its more integrated public transport network and the number of foreign-registered vehicles in the city?
Kerbside rules and regulations in London are highly complex. They can differ by location—across the same road, by borough, by time. The clarity of signage is often poor and confusing. We would recommend that a unified and consistent approach be adopted throughout Greater London and across all London Boroughs, including TfL.
4. What role does the Workplace Parking Levy have? Would people be more inclined to use park and ride services if there were a charge to park at work?
TNT has direct experience of the Workplace Parking Levy as our depot located in Nottingham is subjected to this tax. The cost exceeds £30,000 per annum (£191 per member of staff). At present, the cost of the levy has not been passed onto our employees. As a consequence, we have not experienced any change in commuting behaviour by any of our employee’s. Having reviewed where our employee’s reside, their working patterns (shifts) and the availability of public transport links operating outside of normal business hours, we deem it unlikely that the provision of general park and ride services would provide suitable alternatives to our employee’s commuting patterns.
The introduction of such a tax elsewhere within the UK could also make it more difficult for our business to shield our employee’s from the cost of this tax and could result in TNT having to pass on the cost to its employees at those locations subjected to the tax.
5. Are there steps local authorities can take, while managing congestion, to make it easier for businesses to trade and make deliveries?
Fundamentally, the effectiveness of kerbside loading facilities depends on a number of different parties:
Drivers of freight vehicles need to use the right facilities at the correct (legal) time. They must also show consideration for other road users.
Delivery companies need to schedule delivery trips according to the availability of legal loading facilities. They must also have procedures in place to manage their drivers’ behaviour.
Street planners and engineers must recognize the requirement for kerbside loading facilities and optimise location, design, construction and timings.
Enforcement authorities must recognise the importance of keeping loading facilities clear of non-loading vehicles. They also need to maintain a balanced approach that considers different loading activities.
Failure by any of these parties to act appropriately may result in the delivery company receiving a Penalty Charge Notice. Indeed, this is one of the most contentious issues in the freight and highway/enforcement authority arena today.
Transport for London (TfL) data suggests that one third of all Parking PCN’s are issued to commercial vehicles (vans and trucks). Other data shows high levels of repeat contravention by the same delivery companies, often at the same locations. The implication is that factors such as health & safety, customer demands, driver behaviour and environmental restrictions play a significant role in the delivery decision making process. It is not simply a matter of adhering to rules and regulations relating to “signs and lines”.
In our experience, the provision of loading and unloading facilities in many commercial centres is substantially inadequate. It is our view that it is important to ensure that the demand for loading and delivery activity is not ignored as it can create congestion, harm road network performance and reduce the effectiveness of traffic engineering schemes. Facilitating kerbside loading at the right place and time, through a combination of appropriate physical infrastructure and TRO’s, smooths the traffic flow and benefits the local economy. As internet shopping and home delivery continues to increase exponentially, more places to legally stop for deliveries outside or near shop fronts and residences becomes an evermore essential requirement. A review of the existing provision for loading and unloading, particularly in PCN Hot Spots (as referred to in paragraph 1), could enable delivery activities to be integrated more successfully into a street’s day-to-day operation. This would result in a positive impact on air quality through reduced congestion and improved traffic conditions.
March 2013