Chartered Institute of Logistics and Transport UK News

Businesses 'should be served by a network of airports'

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Leaders at Birmingham Airport believe that UK businesses should have access to a network of airports.

Chief executive of the aviation facility Paul Kehoe said that transforming Heathrow into a hub airport is "illogical".

The Airports Commission is piecing together information and suggestions on how to expand the UK's runway capacity and it could be a while before a decision is made.

There have been calls for a major extension of Heathrow, while others want to see a new hub airport built just outside London, but Mr Kehoe thinks this would not be fair on businesses in the Midlands and north of England.

He highlighted the results of a new report by Capital Economics, which indicated that more than half a million firms are within Birmingham Airport's catchment area - around a quarter of all companies in the UK.

"It is clear that UK exports are best served by a network of airports, not a London hub," he remarked, before adding that manufacturers rely on convenient international connectivity, something that could be jeopardised if the nation's main airports are located exclusively in the south-east.

Arriva increases its influence in Europe

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Arriva has become the leading international transport provider in eastern and central Europe after parent company Deutsche Bahn successfully acquired Veolia Transport Central Europe (VTCE).

Although the exact cost of the sale has not been revealed, it is a significant deal that will enable Arriva to enhance its services.

VTCE employs more than 6,300 people and has a fleet of 3,400 vehicles across 60 depots in six countries. Its primary function is to provide bus services for local authorities.

The acquisition ensures Arriva now has a presence in 15 nations and has an overall workforce of more than 55,000 people.

Mike Cooper, deputy chief executive officer and managing director of Arriva's mainland Europe business, said VTCE has established itself in Croatia, Czech Republic, Serbia, Poland, Slovakia and Slovenia.

"We will focus on working very closely with our new partners and developing strong, long-term relationships that enable Arriva to bring value to clients and customers," he remarked.

A recent report by Network Rail showed that Arriva's train operations in the UK were more punctual in April, while a separate study by the Office of Rail Regulation suggested the firm has also improved its customer satisfaction ratings of late.

Why logistics firms should not get carried away by falling fuel prices

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The average price of diesel has fallen by more than 3.5p a litre in the past month, but it is still far too early for logistics companies to get carried away.

Many hauliers have been hamstrung by the excessive rates being charged by filling stations in the UK, so any news of declining costs is bound to be celebrated.

However, there have already been signs to suggest wholesale prices are rising again, which could lead to another upswing at the pumps in the near future.

In its latest report, the AA stated that price movements are fragile and it also pointed towards a recent announcement by the International Energy Agency, which warned that traders and speculators are becoming more influential in the European fuel market.

AA head of public affairs Paul Watters wants to see greater transparency in the fuel industry, as drivers are finding it hard to predict price fluctuations.

"We have seen petrol consumption in the UK fall to record lows this year. The warning signs couldn't be any clearer," he remarked.

Morrisons launches online shopping services

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Morrisons has announced that customers will be able to order their shopping online by January 2014.

The supermarket has secured a long-term agreement with Ocado, which will enable the firm to deliver goods across the UK.

Morrisons is the latest high-profile company to adjust its logistics infrastructure in order to take advantage of the web shopping boom and the move will bring it up to speed with rivals Tesco and Asda, which already offer such services.

Overall, Morrisons chiefs expect full year new business development investment to total £65 million.

Chief executive at the firm Dalton Philips said this was a "significant strategic step" for the business and shoppers will ultimately benefit from the venture.

"The customer gets our affordable fresh food delivered by Ocado's state of the art distribution system," he remarked.

Meanwhile, chief executive of Ocado Tim Steiner said the partnership is a further endorsement of the company's "logistical excellence".

The increasing demand for online shopping is causing enterprises to scrap for the best distribution centres and industry experts are concerned the supply of large warehouse space will soon dry up.

Port of Felixstowe named 'Best Container Terminal in Europe'

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Senior figures at Hutchison Ports have spoken of their delight after the firm's Port of Felixstowe scooped a prestigious award.

The port was named the Best Container Terminal in Europe at the 27th Annual Asian Freight & Supply Chain Awards, which was recently held in Beijing.

Organisers of the event said the accolade was handed to the Suffolk-based terminal in recognition of its excellent quality of service and levels of productivity.

Clemence Cheng - chief executive officer at Hutchison Ports - thinks Felixstowe's superb location and range of transport options by road, rail and sea cannot be matched.

"While this award recognises our achievements to date, we will continue to improve on the level of customer service that has made Port of Felixstowe the Port of Britain," he remarked.

The port is undergoing significant improvement work, with new rail-mounted gantry cranes being installed in order to boost the overall capacity at the site.

Airports Commission is considering all expansion options

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The Airports Commission has confirmed that all suggestions on the best ways to expand the UK's runway capacity are still being considered.

A number of MPs and independent organisations are currently at loggerheads, with some claiming that a brand new hub airport is required to accommodate more passengers and cargo in the south-east, while others believe that Heathrow should be expanded.

However, the Airports Commission - which was set up in November 2012 to govern the situation - is ruling nothing out as yet.

The body has published the Airport Operation Models report and this is the fourth in a series of papers that will be used to decide on the best course of action.

Chair of the group Sir Howard Davies said it is important that all arguments are given "full and detailed consideration".

"This paper explores some of the possible future scenarios, which carry different implications for airport shape and capacity," he remarked.

Bosses at Heathrow Airport have today (May 17th) warned the Airports Commission there is "no easy fix" to resolve the nation's airport capacity crisis.

DfT secures deal with c2c Rail

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The Department for Transport (DfT) has struck a deal with c2c Rail, which will see the latter operate trains in Essex for at least another 16 months.

This is the first agreement the DfT has concluded since the UK's rail franchising programme was revised in March 2013.

A subsidiary of National Express, c2c will operate the current Essex Thameside franchise until September 2014, at which point a long-term partner will take control.

Transport secretary Patrick McLoughlin said the deal is a vital step in getting the franchising system back on track.

The government recently set up a Franchise Advisory Panel, which will provide support for the DfT as it attempts to renegotiate 15 major railway contracts over the next eight years.

"It gives the industry time to develop their long term plans for the future franchise and confidence to passengers that services will continue for the next 16 months," Mr McLoughlin commented about the c2c Rail tie-up.

London Bridge railway station set to be improved

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The first phase of work to enhance services at London Bridge railway station is set to get underway this month.

Network Rail has confirmed that three platforms will be taken out of use until spring 2014 and that platforms eight to 16 will be temporarily closed over the late May bank holiday to enable the project to get started.

The company said the changes are vital in order to create more capacity to, from and through the station. At the moment there are six through and nine terminating platforms at the station, but this will be changed to nine through and six terminating platforms by 2018.

This means rail companies can increase the capacity of their services and trains will no longer have to wait outside the station until a platform is free.

Network Rail's managing director of network operations Robin Gisby said: "Once complete London Bridge will unlock the full benefits of the Thameslink programme and increase capacity through central London."

A number of prominent London-based stations have been upgraded in recent months, including King's Cross, which received a huge new western concourse.

How liquid air could boost the logistics sector

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The Centre for Low Carbon Futures (CLCF) believes the use of liquid air could significantly boost the efficiency of the UK's logistics sector.

Its latest report showed that buses, vans and refrigerated lorries could be far more environmentally-friendly and cheaper to run if this type of fuel is used instead of diesel and petrol.

Fuel prices continue to cripple haulage companies and the government has come under intense pressure to lower duty rates, as UK-based firms are falling behind their European rivals who can buy diesel far more cheaply.

The CLCF's study - entitled Liquid Air in the Energy and Transport Systems: Opportunities for Industry and Innovation in the UK - also indicated the use of liquid air could create a storage industry worth at least £1 billion per annum, as well as securing the nation's energy sector and cutting greenhouse gases.

Professor Richard Williams, pro-vice chancellor of the University of Birmingham, said liquid air is the "missing piece of the puzzle" in the quest to solve Britain's energy crisis.

Extra freight ferry required for Isle of Man TT event

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The Steam Packet Company has confirmed that an extra freight ferry will be needed to transport vehicles to the Isle of Man in time for the famous TT Festival.

More than 11,600 motorcycles are expected to arrive in Douglas later this month, which is a significant increase on previous years.

To cope with this demand, the firm will use the MV Arrow during peak periods and it also has the option of utilising the P&O Express passenger craft.

Steam Packet chief Mark Woodward said plans had been in place to transfer racers and spectators across to the island from mainland Britain without using an extra freight vessel.

"However, bringing in MV Arrow will improve the service to freight customers, providing them with extra capacity and giving us additional operational resilience," he remarked.

The festival will get underway on May 25th and will last for two weeks in what is undoubtedly the busiest time of year for the Isle of Man.

According to the Steam Packet Company, it usually carries around 600,000 passengers and 170,000 vehicles between the Isle of Man and Liverpool, Dublin and Belfast each year.

HS2 development continues to gather pace

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The Department for Transport believes the first phase of the revolutionary High Speed 2 (HS2) rail development is "one step closer" after two consultations were launched today (May 16th).

Government officials have urged the public to respond to the project's draft Environmental Statement and are also seeking views on proposed design refinements.

The latter is aimed at giving people a chance to react to changes made to the original route between London and Birmingham, while the former looks at how the lines will blend into the landscape of affected areas.

Transport secretary Patrick McLoughlin said HS2 is "absolutely vital" for the UK, but such a huge project cannot be completed without some disruption.

"Publication of these plans is a crucial next step and will ensure that construction of the first phase can begin within the next four years," he remarked.

The consultations will be open until July 11th.

Earlier this week, the government announced a revision of its original HS2 route to make room for an important new rail freight hub near East Midlands Airport.

London Assembly welcomes Crossrail 2 consultation

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The London Assembly has welcomed Network Rail and Transport for London's decision to launch a consultation on the proposed route for the Crossrail 2 development.

Members of the group's Transport Committee think the project will be hugely important to London's future, but it must be done right.

Mayor Boris Johnson urged the public to air their views on the scheme between now and August 2nd 2013 and he believes Crossrail 2 will revolutionise the capital's transport infrastructure.

Chair of London Assembly's Transport Committee Valerie Shawcross said it is vital that the plans are "robust" and help to regenerate parts of London that need it the most.

"[We] will be carefully scrutinising the plans of those in charge to make sure that London gets the boost it deserves from this proposed new transport infrastructure," she remarked.

All being well, the project could be in operation by 2030 and it will follow on from the impressive Crossrail development, which is currently being built in the capital.

Stansted chiefs hail select committee report

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Bosses at Stansted Airport have welcomed the Transport Select Committee's latest report, which refutes claims that a new hub airport is needed in the south-east of England.

MPs on the committee also called for an express rail service to be introduced that provides better links to Stansted.

Speaking to the Herts and Essex Observer, a spokesperson for the airport remarked: "We're pleased the committee recognises the need for a coherent strategy on rail access sufficient to address the significant problems with access to major UK airports."

The report also backed calls to extend Heathrow Airport - a subject that continues to divide opinion.

Earlier this month, the London Assembly suggested that a new hub airport is not required and airports should demonstrate that they are using their runway capacity fully before any expansion plans are considered.

The group said that 700,000 Londoners are already affected by excessive levels of noise pollution caused by aircraft and an airport extension will only make matters worse.

Falkirk canals could be used to transport freight

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The Union and Forth & Clyde canals that flow through Falkirk in Scotland could be used to transport cargo in the not-too-distant future.

Transport minister Keith Brown recently announced plans to release funding so that more freight services can be launched on railways and waterways, thus freeing up more space on the nation's clogged road network.

According to the Falkirk Herald, the canals - which have not been in commercial use for more than 50 years - could play a big part in the government's plans.

A spokesman for Scottish Canals told the news provider that trial freight shipments have already been launched on the Caledonian canal in the Highlands and this could spread to other parts of the country, although it is still too early to say exactly where.

More and more firms are shipping cargo via the railways, as this is deemed to be far more eco-friendly than using lorries.

Last month, Mr Brown said he accepted that moving freight by inland waterways is not always the most cost-effective solution, which is why this extra funding has been released.

Government finds oil price fixing claims 'deeply worrying'

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The UK government has labelled claims that major fuel suppliers have been involved in oil price fixing as "deeply worrying".

An investigation has been launched by the European Commission into the activities of Shell and BP, while the offices of Norwegian firm Statoil have also been raided by EU officials.

It is suspected that some companies might have been manipulating the market by fixing the price of refined products such as petrol.

A spokesperson for prime minister David Cameron said: "The European Commission is investigating and we would expect any companies which it wants to talk to to fully comply with these investigations."

Organisations like the AA and lobby groups such as FairFuel UK have bemoaned the cost of fuel in Britain for a long time and these revelations could dent people's confidence in the oil industry even further.

Many logistics companies are still struggling to cope with sky-high diesel costs and some have questioned the apparent disparity between the value of wholesale oil and the prices being charged by filling stations.

British Cycling hails HGV safety measures

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

British Cycling has praised a construction contractor for its work to reduce the number of collisions involving HGVs and cyclists.

The group said FM Conway has done a great job of training its drivers to be more aware of bikers and installing new technology to help cut down on accidents.

Having secured a contract to renovate Herne Hill Velodrome in London, the firm set about introducing a number of measures to boost the safety of its fleet of lorries, which includes the installation of sensors and a camera that allows drivers to see cyclists in their blind spot.

British Cycling's policy and legal affairs director Martin Gibbs thinks other businesses should follow FM Conway's lead.

"Cities in the UK also need to look at restricting the times that lorries can enter city centres, as we've seen in Dublin and Paris," he remarked.

The team behind London's Crossrail development have also introduced stringent safety standards for the trucks used throughout the project and they think this could have a positive impact in other parts of the country.

Heathrow 'needs a new runway to survive'

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

A leading figure in the aviation sector believes London's Heathrow Airport is in desperate need of a new runway.

Phil Rawlings, UK manager for Emirates, is the latest person to speak out in the debate on how the UK should expand its airport capacity.

He told the Loadstar: "If [Heathrow] is to survive, it needs another runway."

Some organisations have questioned Heathrow's commitment to air cargo and Mr Rawlings thinks airports need to offer freight facilities if they are to attract new airlines.

"20 per cent of our business comes from cargo. We factor in cargo on all of our operations," he added.

Recent figures provided by Heathrow Airport chiefs confirmed that air freight activity continued to fall in April 2013. Indeed, the volume of goods being handled at the aviation hub dropped by three per cent when compared with the corresponding month in 2012.

Nevertheless, it appears increasingly likely that Heathrow will be expanded in the future, as MPs on the Transport Committee recently said that adding a third and fourth runway at the facility is a more feasible way of boosting capacity in the south-east than building a new hub airport.

M&S opens new distribution centre

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Marks & Spencer (M&S) has opened a massive new distribution centre that will be used to handle online orders made by customers all over the UK.

The 900,000 sq ft complex is based in Castle Donington - which is nicely placed in the East Midlands, allowing for easy access to the rest of the country.

Some 1,200 people will be employed at the facility during peak times and the fully automated site will hold 16 million products. It will be capable of processing one million items a day.

Chief finance officer at M&S Alan Stewart insisted the retailer was transforming its supply chain operations to ensure they are fit for the future.

"We're extremely proud of Castle Donington, it's among the best of its kind in the world and our focus is now on delivering the rest of our modernisation programme," he remarked.

A number of firms have been looking at purchasing new warehouses in order to cope with the online shopping boom.

The Co-operative Group recently opened a new £22 million distribution centre in north Derbyshire, which was the culmination of a project aimed at overhauling the company's logistics network.

Consultation launched on Crossrail 2

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Transport for London (TfL) and Network Rail have launched a consultation on the proposed Crossrail 2 development, which could be in operation by 2030.

The new network would add even more capacity to London's public transport system and would supplement the ongoing Crossrail project.

Mayor of the city Boris Johnson said Crossrail - which will extend London's overall rail infrastructure by ten per cent - will revolutionise travel in the capital. Overall, the project is expected to bring economic benefits worth at least £42 billion.

Ten million people are expected to be living in London by 2031, so it is vital that the tube, rail, bus and road networks are able to cope with the added strain.

"I am sending out a rallying cry for the public's support for this consultation - come and share your views so we can progress with Crossrail 2 as soon as possible," Mr Johnson remarked.

The consultation will run until August 2nd 2013 and TfL and Network Rail are keen to hear exactly what people would want from the Crossrail 2 development.

Increased rail use is causing noise problems

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

EU leaders are desperate to remove as many HGVs from the road as possible by encouraging the use of rail freight, which is a more eco-friendly option.

However, a new study conducted in France has shown the transportation of cargo via trains is causing excessive noise pollution and this may lead to health risks in some areas, Euractiv reports.

Published in the Journal of Environmental Psychology, the research indicated that people who are exposed to "nocturnal railway noise" suffer from chronic daytime sleepiness and short attention spans.

The EU is keen to rectify the situation and the most cost-effective way to do so is to retrofit freight trains with quieter braking systems. Although this could take some time, the funding needed to achieve this is said to be available.

Earlier this year, engineering consultancy firm WSP suggested the High-Speed 2 network planned for the UK could free up more space for additional rail freight services.

In fact, the company said the development could take the equivalent of 500,000 HGV lorry journeys off the M1, M40 and M6 motorways each year.

Passenger numbers up at Gatwick Airport

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Some 2.7 million passengers passed through Gatwick Airport in April 2013, which was a 0.4 per cent improvement on the corresponding month in 2012.

New figures have shown that an extra 11,400 people boarded flights from the south-east airport when compared to April last year, which is impressive given the bad weather and the fact that Easter fell in March in 2013.

The average flight was 80.2 per cent full throughout the month - up by 0.3 per cent year-on-year.

It was also a good month for airline expansion at the airport, as the likes of Vietnam Airlines, Turkish Airlines and Norwegian Air Shuttle all launched new services.

Gatwick Airport's chief financial officer Nick Dunn said the results were "pleasing".

"This activity highlights the strength of Gatwick's offering to its airlines and showcases the routes to key emerging markets that we are able to support," he remarked.

Last month, Gatwick bosses told the Airports Commission that competition is vital in the UK's aviation sector and also stressed that claims from Heathrow leaders that the country needs a major hub airport are wide of the mark.

Bombardier secures TfL deal

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

Rail manufacturer Bombardier has struck a deal with Transport for London (TfL), which will see the firm provide another 57 cars for the city's overground network.

The carriages will be used to turn existing four-car trains into five-car services and the order is valued at approximately £88 million.

Delivery of the new Class 378 units will start in late 2014 and is expected to end in 2015.

Des McKeon, commercial director of Bombardier Transportation in the UK, said this contract underlines the strength of the relationship the firm has struck up with TfL.

"As well as delivering new, reliable trains we are improving availability and reliability together with the operator through our fleet maintenance offering," he remarked.

Bombardier - which recently announced revenues of $4.3 billion (£2.7 billion) for the first quarter of 2013 - has played a vital role in keeping London's public transport network rolling in recent years.

In 2012, the company worked around the clock to ensure 800 of its trains on nine key routes in the capital were able to cope with the increased demand brought about by the Olympic Games.

DPD plans new £100m East Midlands parcel hub

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

One of the UK's leading parcel firms has unveiled plans for a new £100 million depot in the East Midlands.

DPD has appointed Goodman to develop a 330,000 sq ft parcel hub at Hinckley Commercial Park and - should planning permission be approved - it will be the largest building of its kind in Europe.

The site has the potential to create 1,000 new jobs once it is fully operational in 2015 and the company is hopeful that work can start in September 2013.

Chief executive officer at the firm Dwain McDonald said this is a long-term strategic decision and the organisation - which is the fastest-growing parcel company in the UK - cannot afford to stand still.

"Our network capacity is fine at the moment but we need to make sure that, as demand increases from our customers, we have the potential for growth," he remarked.

The East Midlands is a popular destination for companies that are looking to build new warehouses and distribution centres, mainly because of its central location and excellent transport links.

Hinckley Commercial Park is very well connected, as it is based close to Junction 1 of the M69.

Government revises HS2 plans

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The government has revised part of the route for the revolutionary High Speed 2 (HS2) transport network in order to accommodate a new rail freight hub in Leicestershire.

Details of the northern section of the line between Birmingham and Leeds were unveiled earlier this year and MPs raised concerns about the feasibility of the route.

The original plans would have seen the line dissect a proposed strategic rail freight interchange depot next to East Midlands Airport, which has the potential to create 7,000 jobs.

Having taken these issues on board, the authorities have tweaked the drawings so that a tunnel underneath the airport will be extended.

Transport secretary Patrick McLoughlin said: "These changes have the potential to deliver huge economic benefits for the East Midlands on top of the already considerable opportunities HS2 will bring the region."

Last week, the Queen confirmed in her latest speech that new legislation is to be introduced that will make it easier for developers to get started on the first phase of HS2.

Heathrow cargo activity continues to slide

webmaster@ciltuk.org.uk — Tue, 21 May 2013 08:58:29 GMT

The volume of cargo being handled by Heathrow Airport continued to slide last month, new figures have confirmed.

There was a three per cent downturn in freight activity at the UK's largest airport in April when compared to the corresponding month in 2012 and this is a reflection of the overall softening of world trade.

Bosses at the London-based aviation hub also revealed that passenger numbers fell by 0.7 per cent year-on-year in April.

Some 5.8 million people passed through the facility last month, but airport chiefs said the statistics are skewed by the fact Easter fell in March this year, rather than April.

Meanwhile, Heathrow chief executive Colin Matthews was pleased to report the highest ever passenger satisfaction ratings received in one quarter by the airport.

"We want to keep making Heathrow better for our passengers and airlines by continuing to invest," he remarked.

Heathrow has been in the headlines lately, with MPs urging the government to introduce a third and maybe even a fourth runway at the airport.