UK govt pumps ?1bn into misdirected transport projects, says PD Ports
PD Ports says the UK government's funding of rail infrastructure improvements are all focused in the south of the country, with little provision for problems already identified in the north.
UK Transport Secretary, Geoff Hoon, recently confirmed that the government plans to inject an extra £1 billion into major transport projects next year. According to the Dept for Transport (DfT) statement, the investment is being made "in order to stimulate the economy by accelerating government plans to cut congestion and significantly increase rail capacity".
This extra £1 billion, to be spent on road and rail schemes, is in addition to the overall £10 billion for 2009-2014 already pledged by the Minister in July 2007 to increase rail capacity.
Other major long-term rail projects include the massive London Crossrail scheme, the £5.5 billion Thameslink program, and an additional £600 million to tackle congestion.
According to this most recent DfT statement, major transport schemes include the enhancement of rail freight routes through London, with £54 million just for the North London route improvement. Other monies already allocated in October 2007 to rail freight projects included £132.5 million from the Transport Innovation Fund (TIF) for rail gauge enhancement to cope with modern taller containers on standard height rail wagons from Peterborough to Nuneaton (£80 million) and Southampton to West Midlands (£43 million).
Whilst this is welcome news for southern transport projects, which will continue to receive the lion's share of new rail funds, there is a rapidly growing consensus in the rest of the country that further expenditure in southern UK infrastructure is a failed model. It makes no provisions for tackling the identified problems of the UK's north - south economic performance divide.
PD Ports' group development director, Martyn Pellew, believes that this latest injection of cash for road and rail projects into the already congested south will do very little to improve anything. "It's just a perpetuation of pre-existing problems. Over three years ago the government's Northern Way initiative identified a £32 billion shortfall in the economic performance of the North of England. If the UK government really wants to help our economy in this financial crisis and also meet the long-term environmental targets that have been laid out in the recent Climate Change, Energy and Planning Bills, then the UK government clearly needs a new direction for a sustainable future."
He added that despite the obvious benefits of moving freight by rail, so far there is still considerable misdirection in the way the UK government treats and funds its rail network.
A significant amount of funding has gone into rail access to the country's southern ports, particularly to cope with the newer high-cube containers. But Pellew argues that this latest investment will only continue the trend for shipping lines to add increasing cargo volumes on to the overcrowded southern UK infrastructure. "It's an investment that will work against itself," he said.
Pellew points out that with Britain's excellent ports around its entire coast and less road and rail congestion in the North, the potential for ncreasing inward investment to the UK and for reviving its economic development is quite significant.
"The right mixture of good access to the sea, available brownfield land and an eager work force exists in the North East," said Pellew. "What's missing is a supportive rail infrastructure - especially in the form of rail access for trains and wagons capable of carrying the modern high cube imported containers."
Northern UK ports employers, the rail community and major retailers have been collectively calling on the UK government to invest strategically in rail infrastructure in the North and North East.
ASDA Wal-Mart already operates a 360,000 sq.ft import centre at the northern UK port of Teesport, and Tesco's new 1.2 million sq.ft import centre at the port is scheduled to open in 2009.
Proponents of the supply chain concept known as Portcentric Logistics strongly argue that by bringing cargo farther north via the sea, closer to its end destination and then transferring to shorter distance rail movements, retailers will see a significant reduction in their shipment delays because their products will not be caught up in UK southern port and road congestion. They will also benefit from lower overall transport costs, cheaper land costs and lower labour rates in the North.
Yet, while the recent DfT announcement included £30 million for certain road improvements to Immingham Port on the Humber, the East Coast ports of the Humber, Tees, Tyne and Grangemouth have yet to see money committed for urgently needed rail gauge enhancements to link these ports to the East Coast Main Line (ECML) - the crucial rail link that runs along the UK's East Coast from London to Scotland.
According to estimates, a £100 million investment - "a drop in the UK's transport budget bucket" - in rail freight capability on the ECML would allow the UK to effectively handle an ever increasing demand for imported containerised goods through east coast ports on the Tyne, Tees and Humber.
"The UK government cannot continue to neglect of the North East and the ECML any longer, as this area clearly represents the most logical place for change to begin," said Pellew. "A meagre £100 million investment into this vital rail line will have a major and direct impact for all UK business in terms of reducing cost, carbon emissions and congestion."
UK Transport Secretary, Geoff Hoon, recently confirmed that the government plans to inject an extra £1 billion into major transport projects next year. According to the Dept for Transport (DfT) statement, the investment is being made "in order to stimulate the economy by accelerating government plans to cut congestion and significantly increase rail capacity".
This extra £1 billion, to be spent on road and rail schemes, is in addition to the overall £10 billion for 2009-2014 already pledged by the Minister in July 2007 to increase rail capacity.
Other major long-term rail projects include the massive London Crossrail scheme, the £5.5 billion Thameslink program, and an additional £600 million to tackle congestion.
According to this most recent DfT statement, major transport schemes include the enhancement of rail freight routes through London, with £54 million just for the North London route improvement. Other monies already allocated in October 2007 to rail freight projects included £132.5 million from the Transport Innovation Fund (TIF) for rail gauge enhancement to cope with modern taller containers on standard height rail wagons from Peterborough to Nuneaton (£80 million) and Southampton to West Midlands (£43 million).
Whilst this is welcome news for southern transport projects, which will continue to receive the lion's share of new rail funds, there is a rapidly growing consensus in the rest of the country that further expenditure in southern UK infrastructure is a failed model. It makes no provisions for tackling the identified problems of the UK's north - south economic performance divide.
PD Ports' group development director, Martyn Pellew, believes that this latest injection of cash for road and rail projects into the already congested south will do very little to improve anything. "It's just a perpetuation of pre-existing problems. Over three years ago the government's Northern Way initiative identified a £32 billion shortfall in the economic performance of the North of England. If the UK government really wants to help our economy in this financial crisis and also meet the long-term environmental targets that have been laid out in the recent Climate Change, Energy and Planning Bills, then the UK government clearly needs a new direction for a sustainable future."
He added that despite the obvious benefits of moving freight by rail, so far there is still considerable misdirection in the way the UK government treats and funds its rail network.
A significant amount of funding has gone into rail access to the country's southern ports, particularly to cope with the newer high-cube containers. But Pellew argues that this latest investment will only continue the trend for shipping lines to add increasing cargo volumes on to the overcrowded southern UK infrastructure. "It's an investment that will work against itself," he said.
Pellew points out that with Britain's excellent ports around its entire coast and less road and rail congestion in the North, the potential for ncreasing inward investment to the UK and for reviving its economic development is quite significant.
"The right mixture of good access to the sea, available brownfield land and an eager work force exists in the North East," said Pellew. "What's missing is a supportive rail infrastructure - especially in the form of rail access for trains and wagons capable of carrying the modern high cube imported containers."
Northern UK ports employers, the rail community and major retailers have been collectively calling on the UK government to invest strategically in rail infrastructure in the North and North East.
ASDA Wal-Mart already operates a 360,000 sq.ft import centre at the northern UK port of Teesport, and Tesco's new 1.2 million sq.ft import centre at the port is scheduled to open in 2009.
Proponents of the supply chain concept known as Portcentric Logistics strongly argue that by bringing cargo farther north via the sea, closer to its end destination and then transferring to shorter distance rail movements, retailers will see a significant reduction in their shipment delays because their products will not be caught up in UK southern port and road congestion. They will also benefit from lower overall transport costs, cheaper land costs and lower labour rates in the North.
Yet, while the recent DfT announcement included £30 million for certain road improvements to Immingham Port on the Humber, the East Coast ports of the Humber, Tees, Tyne and Grangemouth have yet to see money committed for urgently needed rail gauge enhancements to link these ports to the East Coast Main Line (ECML) - the crucial rail link that runs along the UK's East Coast from London to Scotland.
According to estimates, a £100 million investment - "a drop in the UK's transport budget bucket" - in rail freight capability on the ECML would allow the UK to effectively handle an ever increasing demand for imported containerised goods through east coast ports on the Tyne, Tees and Humber.
"The UK government cannot continue to neglect of the North East and the ECML any longer, as this area clearly represents the most logical place for change to begin," said Pellew. "A meagre £100 million investment into this vital rail line will have a major and direct impact for all UK business in terms of reducing cost, carbon emissions and congestion."