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Issue 8 2018 - Freight Business Journal


///FRANCE & CHANNEL PORTS The nation’s kingpin


Like the recently resigned Brexit Secretary Dominic Raab, not everyone realises the importance of the south-east corner of England to the UK’s economy. But between them, Dover and the Channel Tunnel account for 30% of the UK’s total trade in goods - £210 billion a year, in total. With around 16,000 freight vehicles a day pouring through Kent, a problem here is a problem for the rest of the country. Dover port and Eurotunnel continue to expand to cope with business which, despite looming Brexit, continues to grow. However, the same cannot be said for the public sector. Dover still lacks a fully-dual- carriageway road link, despite endless lobbying. Nor has anything advanced on the creation of a major truck park, aſt er plans for a huge site at Stanford West were abandoned, in the face of a judicial review, in November 2017. The former airport at Manston near Ramsgate has been suggested as a possible alternative, along with closing the M26 or further sections of the M20, but all these are highly undesirable from a road congestion standpoint.


Record-breaking


Eurotunnel prepares for Brexit


October saw Eurotunnel Le Shuttle Freight break another record for the number of trucks transported in a month, with 152,129 trucks carried, a 7% increase over the same month in 2017, writes public aff airs director John Keefe. The threat of Brexit appears to be having no impact on traffi c through the Tunnel. For the fi rst ten months of the year, Le Shuttle Freight has seen an increase of 3% over 2017. A draſt Brexit deal is now on the


table and industry has heaved a tentative sigh of relief, even if we all recognise that having a draſt on the table and having a signed agreement are not quite the same thing.


In reality, industry has only


really needed one thing from the Brexit negotiations - certainty. As long as the economies on either side of the Channel continue to grow, the transport of goods will


continue to increase. The modern economy is strongly rooted in integrated supply chains and high speed, frequent deliveries. Consumer lifestyles are supported by 24-hour, seven days a week access to goods and to abundant variety at any time of the year. With more than a quarter of all UK- EU trade carried via the Channel Tunnel, it’s a strong bet that the route will continue to expand, whatever the outcome of the Brexit negotiations. The draſt


deal brings the


prospect of certainty for at least the period of transition (and it now looks like that could stretch to four years, up to December 2022). That period of certainty and the negotiation of the future trading arrangements gives the time and space for new processes to be developed, for systems to be designed and for technology to be adapted to ensure that


future border controls match the increase in traffi c volumes and allow continued trade growth. Dominic Raab was right, there


is a very good reason traffi c has concentrated on the Short Straits - it is simply the best route for business. That’s why around 90% of accompanied freight chooses to use the crossing. Whatever the outcome of the


Brexit negotiations, one thing is abundantly clear: the Short Straits will remain the preferred route for high speed, high value, perishable and just-in-time deliveries. There has been some discussion about the possibility of diverting traffi c to other routes to relieve pressure on roads in the South East and, whilst a more resilient, free fl owing road network is an essential component of future growth, it won’t be achieved by sending a few hundred trucks to small ports on the East Coast. The important goals for the


future now are to avoid weakening UK industrial productivity through suboptimal solutions and to match the speed of border controls to the speed of traffi c fl ow through the UK’s best trade route to Europe.


Preparing for a post-Brexit world


With the clock rapidly counting down on Britain’s exit from the European Union (EU), Andrew Austin, group operations director at Dover-based Priority Freight, considers what impact this might have on the logistics industry. Brexit is scheduled to take place


in March 2019 and already we are beginning to see the eff ects of leaving the EU with no trade deal, including apprehension from well- known automotive manufacturers such as BMW, Toyota and Jaguar Land Rover. During the Paris Motor Show, both BMW and Toyota stated that, should a hard Brexit jeopardise the movement of parts and fi nished vehicles, they may consider withdrawing activities from the UK. Jaguar Land Rover is also wary of an uncertain Brexit deal, reporting a delay in their decision to build electric vehicles (EV) in the UK until the situation becomes clearer. We are in danger of witnessing major production decline and loss of market access should the UK leave the EU without a deal for continued trade. In the current climate, clarity


around a deal seems unlikely and although an extension to Article 50 may potentially increase the uncertainty, it would give more time to solidify a deal. However, with the growing awareness of the signifi cant implications of leaving the EU, paired with the lack of a cohesive political appetite in the UK at the moment, another referendum could be a valid option. To avoid further hesitation


from the automotive and other industries, it is imperative that there is clarity over Brexit as soon as possible, regardless of whether or not there is a trade deal, so that organisations can consider the implications and plan accordingly. How this will look, no one knows,


but there are two scenarios that have previously been discussed that are still relevant today:


Scenario one


The UK leaves the EU, maintaining almost all its access to the single market, but with limits on the free movement of labour. This means


that trade with the EU could continue to work in much the same way, but that the UK would have the freedom to negotiate new deals with non-EU countries once Article 50 agreements have been completed. This kind of deal could lead to employment issues due to its limitations on free movement of labour and ultimately, much EU law and legislation would still apply to the UK when it comes to trade, which will no doubt cause unrest for individuals who wanted to be free from these. In scenario two, The UK leave


the single market but secures free trade – meaning there would be no tariff s on goods from the EU. However a customs border would be implemented and all goods would have to go through checks. Though this would help reduce import and export costs on goods, it would lead to highly complex supply chains and the increased cost of running the customs border. Reviewing the two approaches,


scenario one would ultimately be better for the UK, as the need to


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