To truly thrive, the UK logistics sector needs the full support of the government. The Critical Imports and Supply Chains Strategy, published by the UK government in January says as much: “The measures set out through this plan will only be impactful if they are developed and delivered in close partnership with business.”
The industry is taking significant steps to address the challenges it faces – for example, addressing driver shortages with significant wage increases and tackling environmental concerns by investing in decarbonisation technology. However, there are some areas where the sector is reliant on the government creating the right operational environment. Planning is a good example.
The logistics sector must be able to invest and develop sites in a swift and agile way. However, this is inhibited by a planning system that is not fit for purpose, with decision-making slow and local plans not sufficiently protecting space for industrial and logistics sites. The UK planning system has, according to a 2022 Savills report, already suppressed growth in the industrial and logistics sector by 29 percent.
“We need a reformed National Policy and Planning Framework that recognises the vital demands of our sector, and a reform of the Development Consent Order approval process to ensure that nationally significant infrastructure for logistics can come forward at pace,” Phil Roe, President of Logistics UK, CILT Board Member and chair of the cross-industry group, explained.
“The government is a keen supporter of the sector and this is seen through announcements such the Future of Freight Plan and the more recent launch of the Critical Imports and Supply Chains Strategy. It shows an appreciation of how fundamental the logistics sector is in securing the UK’s supply routes to ensure reliable access to the goods we need now and in the future.
“There is always more to do, however, not least in ensuring that logistics is part of the decision-making process when new policies and projects are conceived: this is why the industry has written to the leaders of all the UK’s and devolved nations’ main political parties calling for the appointment of a dedicated minister to ensure the sector receives the appropriate level of representation and influence across government.”
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Economic potential
Growing the UK economy requires a partnership between the government and the sector to boost trade. Logistics enables the UK’s international trade, importing and exporting goods to the value of over £1 trillion a year.
Trade thrives when borders and customs procedures are as simple as possible, processes are industry-friendly, and transport connectivity is efficient. The industry is calling for closer working relationships with the government to ensure it can do what it does best – delivering growth.
“Recent events have shown the world that we cannot afford to take the resilience of global supply chains for granted,” Roe highlighted.
“As well as Brexit, we have weathered the pressures caused by the COVID-19 pandemic, the war in Ukraine and disruption to shipping routes, all demonstrating the impact global events have on the reliable flow of vital goods.
“The UK relies on the logistics sector for its critical imports so it is imperative for the next government to work with the industry and create the right environment for the sector to thrive.”
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Decarbonising the industry
Every element of the logistics sector is embracing the challenge of achieving net zero, whether from using sustainable energy sources within distribution centres and warehousing, to the electrification of vehicle fleets and the use of greener fuels.
Where the sector has more direct control, it is making rapid progress. For example, those operating temperature-controlled warehousing have delivered energy reductions of nearly 10 percent, whilst some refrigeration units are now delivering 90 percent reductions in energy usage. However, where strategic energy infrastructure and fuel decisions are required from the government, there is a growing risk of the UK not meeting its net zero deadlines.
“We need a new partnership approach that enables the UK to become a world leader in logistics sustainability,” Roe declared.
“The logistics sector and government must work together on a long-term, joint sustainability and decarbonisation roadmap that gives the private sector the confidence to invest. This must recognise that the logistics system is comprised of multiple transport modes and infrastructure, meaning a variety of approaches will be needed to achieve net zero.
“It’s a significant undertaking and will include zero tailpipe emission vehicles, public and depot charging, rail electrification, shore power at ports, low carbon and sustainable fuels across transport modes, modal shift, and the prioritisation of freight in terms of electrification and grid connectivity. The roadmap should also be based on a realistic assessment of the availability and cost of technology and infrastructure, the importance of maintaining efficient and resilient supply chains and, over time, should shift focus from vehicle to whole lifecycle emissions.
“The logistics sector requires a supportive, stable policy environment that incentivises decarbonisation, enabling it to make the transition away from fossil fuels and keep costs down for customers. This should include the use of tax and grant incentives to encourage the adoption of low carbon fuels, as well as investment in new vehicles and fuelling and charging facilities.”
