6 HEATHROW LOGISTICS Securing the best deal


The potential for a logistics hub in Scotland is an important part of the Heathrow offer


BY WILLIAM PEAKIN


The Scottish Government announced its support for plans to build a third runway at London Heathrow Airport, after securing key commitments for Scotland. The Government said that the


expansion plans offer the greatest strategic and economic benefits to Scotland, creating thousands of jobs and providing a significant boost to the country’s connectivity.


The airport’s commitments include: l Creating of up to 16,000 new jobs across Scotland from the new capacity. l Working with the Scottish Govern- ment to investigate Glasgow Prest- wick Airport as a potential site for a logistics hub to support the building of the third runway. l Spending £200m in Scotland dur- ing planning and construction. l Establishing a £10m route devel- opment fund to help support new domestic routes. l Reducing by £10 per passenger landing charges paid by airlines operating services from Heathrow to Scotland. This will benefit existing services from Aberdeen, Edinburgh, Glasgow and Inverness and incentiv- ise the introduction of new services. l Promoting all that Scotland has to offer with a significant, long term marketing campaign at Heathrow. l Hosting a procurement event in Glasgow to enhance opportunities for Scottish firms to win business with Heathrow suppliers.


HEATHROW MADE these commit- ments in a memorandum of under- standing signed with the Scottish Government. Cabinet Secretary for Economy, Jobs and Fair Work Keith Brown said: “We have been clear from the start of this process that we


2 February 2017


wanted the best deal for Scotland and building a third runway at Heathrow provides the most significant benefits to the country’s economy and con- nectivity. “We have engaged extensively with


both airports during this process and considered all options very carefully. Gatwick’s proposals are also to be commended. However, Heathrow’s plan offers significant job creation, major investment opportunities and, crucially, seeks to address how all of Scotland’s airports benefit from the new runway capacity when it comes and also in the lead-up period. “The potential for a logistics hub


to be based at Glasgow Prestwick Airport is also an important part of the Heathrow offer. It would support the


“Heathrow’s plan offers significant job creation, major investment opportunities and seeks to address how all of Scotland’s


airports benefit” Keith Brown


A commitment to business


Heathrow sets out five clear pledges to guarantee more business for the UK’s SMEs


BY MATILDA BORGSTROM


Heathrow has launched a series of com- mitments to guarantee SME involve- ment in future work at the airport. The commitments are the latest


output from the long-standing col- laboration between Heathrow, the Federation of Small Businesses (FSB) and Chambers of Commerce across the country, to increase the number of SMEs who benefit directly and indi-


rectly from the economic opportunities provided by the UK’s only hub airport.


Heathrow’s five SME guarantees are: l Develop the successful Heathrow Business Summits across the UK. These bring together SMEs with Heathrow’s procurement team and the airport’s principal suppliers; l As a signatory to the Prompt Pay- ment Code, ensure suppliers are paid on time and ensure this practice flows down through the airports supply chain into SMEs; l Establish a new Innovation Net- working Forum to reach out to SMEs and start-up organisations in the innovation and technology sector; l Offer SMEs access to the millions of international passengers at Heathrow, by brokering deals between stockists


and World Duty Free and other retail tenants; l Establish a grants programme offering awards up to £2k for SMEs to spend on travel and trade missions to help SMEs reach new markets.


Last year, the airport celebrated 20 years of its Business Summit, which gives SMEs throughout the UK the opportunity to get a foot in the door and capitalise on the business opportunities available through Heathrow’s supply chain. During that time Heathrow has spent billions on capital development projects across the airport including building brand new terminals 2 and 5, and Heathrow’s use of SMEs has risen, so that they now make up a third of the airport’s Tier 1 supply chain.


Heathrow and FSB showcased the


work of SMEs from across the UK via social media channels, including examples such as Gourmets Choice Ltd in Portsoy, Scotland, a 5th genera- tion family owned and managed com- pany producing smoked salmon for the past 108 years and LC Energy Ltd in Guildford, which develops renew- able energy products. FSB national chairman Mike


Cherry said: “We’re delighted to part- ner with Heathrow in the launch of the SME guarantees and to celebrate the great ingenuity of UK small busi- nesses - not least in helping to build Heathrow.” Heathrow procurement direc-


tor Ian Ballentine added: “For us at Heathrow – SMEs are the often unseen and untold success stories that


make up our supply chain. We know the crucial role they play in building the world-leading infrastructure here at the airport and how they use that work to provide jobs and growth in their own regions and communities.” Salmon’s importance to British


exports was highlighted recently in a speech by Heathrow chief execu- tive John Holland-Kaye: “The biggest export through Heathrow by volume is high quality salmon, worth £290m to the Scottish economy. Regular connections from Heathrow mean fresh salmon can get from the farm in Scotland to the seafood market in Tokyo within 24 hours. Think how much more could we export, with more flights from Scottish cities to Heath- row, connecting to 40 new long haul destinations.”


pre-fabrication of components for the construction phase, with potential for future work beyond the launch of the third runway, bringing strong economic benefits to the airport and the wider Ayrshire economy. “Growing the number of direct


international air routes to and from Scotland remains a priority for this Government, but the proposals from Heathrow offer all our airports a range of benefits that will help them grow passenger numbers and con- tinue to build on their successes.”


JOHN HOLLAND-KAYE, Chief Exec- utive of Heathrow Airport, said: “An expanded Heathrow will create up to 16,000 jobs in Scotland. It would facilitate more airlines flying routes


John Holland-Kaye, chief executive of Heathrow Airport with Cabinet Secretary for Economy, Jobs and Fair Work Keith Brown


to Scottish airports, meaning more flights, more competition and choice for families and businesses across the nation. That also means more visitors to Scotland, more destinations for Scottish tourists and more opportunity for Scottish businesses to reach new export markets. “This partnership demonstrates


how Heathrow expansion can work for every region and nation of the UK. Now is the time for the UK Govern- ment to make the right choice and back Heathrow.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8