NEWS\\\


Warehouse developers are being frustrated by housing developments being given preference, boosting a new logistics phenomenon – North- shoring, says a property expert. Neil Storey, managing director


of industrial property developer, Onward Holdings


says that


while brownfi eld or urban sites are being snapped up to meet the country’s need for more housing, there was around 235 million sq ſt of warehouse space leased or purchased between 2007 and March 2018. And while major companies are still spending top dollar to set up distribution centres in the East Midlands, this space comes at a premium price. North-shoring – the buzzword


for moving southern operations to the north – is boosting the


need for more logistics hubs north of the East Midlands as companies see the benefi ts of lower operating costs, a higher availability of labour and less congestion on the roads, resulting in faster transport links. Indeed, says Storey: “The


north of England can become a logistics powerhouse and rival the East Midlands for prime warehousing sites if more land is freed up for industrial use. “At Onward Holdings we


believe that the UK logistics property market needs millions more square feet of new warehouse space in the north of England, especially in the middle size market (below 100,000sq ſt ) which is of less interest to the big institutional players, to accommodate north-shoring and the growing


Planners suff er ‘freight blindness’ says report


Government and local authorities are suff ering from ‘freight blindness’ with little understanding of why and how to plan for the sector and leaving it far down the priority list, says the National Infrastructure Commission’s interim report into the Future of Freight, published on 21 December. Planners are unable to take


account of, or plan eff ectively for, the needs of freight and government’s current approaches to policy-making are piecemeal, fragmented into individual modes and have struggled to proactively confront future challenges. There is no national view as


to how the UK freight system is performing as a whole. It has limited visibility within government and limited priority is given to it as a policy issue, the report adds. The report also calls for new


technology such as intelligent Automatic Number Plate Recognition and mobile tracking to provide the information needed to develop eff ective freight policies. Lack of data makes it diffi cult to develop plans and interventions that meet the needs of freight whilst managing harmful by products such as emissions. The report adds that there is


an increasingly limited supply of land for storage and distribution operations in key markets, particularly London, where the present vacancy rate is just 4%.


In response, the British Ports


Association called on Government to review its freight strategy and prioritise port connectivity initiatives. Chief executive, Richard Ballantyne suggested: “We welcome the National Infrastructure Commission (NIC)’s progress. The interim report provides an important reminder to Government about the importance of freight transport. It also highlights some of the challenges the nation faces in terms of our ageing transport infrastructure. The UK’s transport network is vital for ports and everyone in the freight and logistics sector.” While UK ports are independent


of Government and responsible for their own infrastructure, they are reliant on good connections, particularly publicly managed roads, which can be subject political and funding considerations. Ballantyne continued: “While we


support a long-term approach we are keen that the NIC’s work leads to clearer funding commitments and soon. In recent years Government has focused investment towards ‘big ticket’ passenger schemes and it is important that freight is not neglected, to help the UK remain competitive.” BPA would also like to see


visionary economic growth policies which could see ports become hubs of regional economic activity stimulating trade and jobs.


demand for storage, distribution and fulfi lment hubs to satisfy the need for speed to the consumer and delivering goods on a 24/7 basis.” He adds that places like


Castleford off er easy reach of the northern container ports, Doncaster Airport and the rail freight network via Wakefi eld


Issue 1 2019 - Freight Business Journal Sun shines on the North Shore


Europort. Around 80% of the UK’s population is accessible in four hours, making this location ideal for bulk distribution items. Many companies are already


establishing logistics operations in the region with the likes of DHL, Amazon, e.buyer.com, Leman International Transport and Freemans.


Storey adds: “To meet this


trend Onward is currently looking for land to increase its portfolio of warehouse and industrial units. We have been successful in securing some prime locations in Yorkshire for logistics facilities, but more land near to the motorway junctions needs to be allocated.” He believes that the loss of


industrial space is also a fall-out from the fi nancial crisis of 2008


15


when empty warehousing fell into disrepair and sites were cleared and given consent for housing because businesses couldn’t risk building new facilities. Since then, as a result of the upturn in the economy since 2014,


driven by e-commerce,


growth of the discount grocery chains and third-party logistics, there has been a huge surge in demand for high quality warehousing.


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