Transport and logistics: UK delivers the goods

Parts of the UK’s integrated transport sector are undergoing massive infrastructure redevelopments, creating prospects for additional investment and increased sustainability.

With world-class air links, a sophisticated rail system and more than 100 seaports, the UK’s transport network is robust and effective. Over the last decade, this same integrated network – a vital part of the UK economy – has received £150 billion in Government investment.

From a business and tourism perspective, the UK is an important and popular global location. No wonder, then, that it is home to some of the busiest international airports in the world, including Heathrow - the largest international airport in Europe and the third largest globally, welcoming over 65 million passengers a year.

The UK’s ports and harbours handle the largest volume of seaport traffic in Europe and more than 560 million tonnes of freight annually. The UK rail network links all major cities across Britain. Through Eurostar and the Channel Tunnel it also provides fast, reliable access to mainland Europe.

Logistics expertise

The UK’s advanced infrastructure allows the logistics industry to take advantage of improvements in vehicle technology, emissions reduction and increased levels of supply chain efficiency - resulting in high customer satisfaction and lower running costs.

Steve Agg, chief executive of the Chartered Institute of Logistics and Transport, says that over the years the UK’s transport and logistics industry has been characterised by its ability “to react to new circumstances, to innovate, and to, quite literally, deliver the goods”.

Agg points to the recent eruption of Icelandic volcano Mount Eyjafjallajökull as evidence that the sector is equipped to withstand immense levels of strain. The ash cloud and resultant flying ban posed a huge challenge for the UK’s logistics industry, but smart utilisation of rail, sea and road facilities kept losses to a minimum.

The adaptable, innovative and increasingly sustainable transport sector has attracted numerous overseas investors over the years. International names operating in the UK transport market include train and bus companies Deutsche Bahn and Abellio, the latter being an expansion of Utrect-based Nederlandse Spoorwegen. PD Ports, the UK ports & logistics business, is now owned by Canadian-based Brookfield Asset Management.

Freight and logistics companies with UK interests include US-based firms Schumacher Cargo Logistics and UPS; Cosco Logistics, owned by China Ocean Shipping Company; Swiss-based Kuehne + Nagel and German-headquartered DHL.

Future developments

Even more global names are expected to follow, with future infrastructure developments within the UK transport sector set to have wide international appeal.

Crossrail, for instance, will connect west London to east London, bringing an additional 1.5million people within 60 minutes commuting distance of the capital’s key business districts. When Crossrail opens in 2017 it will increase London's rail-based transport network capacity by 10 per cent, helping to secure London's position as a world leading financial centre and cutting journey times across the city.

By autumn 2010, London’s Docklands Light Railway (DLR) will be extended to include four new stations. And the Thameslink upgrade – which will provide new, frequent, longer trains and big improvements to three central London stations - has been deliberately phased so that additional capacity will be in place ahead of the 2012 Olympic Games.

London Gateway, another major project, combines a new deep-sea container port with the largest logistics park in Europe. Using innovative technology to raise productivity and reduce costs, it will offer an alternative to conventional distribution methods for businesses looking to access the UK market.

Rising to the challenge

Other programmes are planned elsewhere in the UK. Current projects at North East England’s Port of Tyne involve the creation of over 13 acres of land, recycling the spoil from the construction of the second Tyne Tunnel to infill Tyne Dock.

Teesport is the site of the £300 million Northern Gateway deep sea container terminal development. When completed, it is expected to attract retailers and other businesses to import and distribution centres in the area.

As part of these and other key infrastructure developments, the UK transport industry is rising to meet environmental challenges. The newly announced Green Investment Bank (GIB), for instance, will provide equity to fund low-carbon transport and energy schemes. And, in May 2010, the Government confirmed its intention to establish a high-speed rail network as part of a programme of measures to create a low carbon economy.

Centres of excellence

Already second to none, the UK’s transport planning and development expertise is set to receive a further boost. The £7.75 million UK Transport Research Centre was announced in March 2010. Based at Imperial College London, University College London and the University of Leeds, it will draw on scientific experts from across the country to address some of the key questions likely to face transport through the next decade - and beyond.

Professor Ian Diamond, Chief Executive of the Economic and Social Research Council, who are jointly funding the new centre, said: "The UK’s transport system is at the very heart of the future of the country. Providing a strong base of evidence to inform future government policy will be vital - not just to the economic recovery, but to all aspects of society."

Also at the forefront of innovation in the transport sector is InnovITS, established in 2005 to help the UK become a leading centre of excellence in intelligent transport systems for sustainable mobility. InnovITS has developed ADVANCE, a futuristic research and development centre located at Nuneaton. A world first, this purpose-built facility will allow the telecommunications, automotive and electronics industries to develop, test and validate the transport technologies of the future.