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Issue 5 2021 - Freight Business Journal


to the regional ports such as


Bristol than they do to the bigger hubs, perhaps because they’re keen to support the feeder services to these ports.” He adds: “I’m always pleased to


put as much traffic as I can through my local port.” Faced with the lack of capacity


on ships, rail volumes from China to the UK have also soared and the service has gone from strength to strength. Davies Turner offers regular rail groupage boxes from Chinese cities such as Wuhan via Duisburg to all its regional hubs, including Bristol. “The price


difference with shipping is not so great now and rail is quite a bit quicker than by sea. It takes perhaps 18 days from Wuhan to Duisburg and then around five days from there to the UK.” However, getting space for boxes on trains is as hard as finding it on ships at the moment. Davies Turner has though


strengthened its ocean team in Bristol, from two to four people. “We’ll also be taking on more


trainees this year,” Edward Lucy continues. “We had to pause our scheme this year because of Covid, but we are again looking for people with either A levels


or graduates. In fact, with our expansion in Bristol – we now have three buildings – and the massive growth in e-commerce, there’s never been a better time to get involved in the freight business.” He says that Brexit has made


people value freight forwarders’ expertise as never before. “We get quizzed about all sorts of things to do with VAT and customs, or customs bonds – some of it very technical.” Forwarders’ advice is oſten more practical and workable than that available from expensive tax advisors. The fact that all Davies Turner’s major hubs have the ability to


raise their own transit documents has stood it in good stead during the Brexit changeover – along with the fact that it retained its customs expertise during the single market era with regular services to the likes of Morocco or Turkey. Bristol was the one major


English port to miss out on Freeport status in the government’s recent allocation, but Mr Lucy does not think Davies Turner will suffer from this, pointing out that it has its own customs-bonded facility in Bristol. However, the Bristol region itself might miss out on opportunities to set up manufacturing centres


although the much smaller port of Plymouth has gained Freeport status. Davies Turner does have an


office in Plymouth, though it is mainly geared to airfreight, and which is doing very well, as are all the forwarder’s regional offices, including Bridgend in South Wales. “There is plenty of business in these areas, if you go and look for it,” Edward Lucy explains. “Our policy is not to be reliant on any one big customer. We have people who do perhaps two or three shipments a year; others who do that many in a day, so it’s well- spread.”


///WALES There are many food and drink


exporters in the south-west of England, even manufacturers of organic clothing, all of whom are actual or potential exporters to Europe or further afield. The secret of Davies Turner’s


success, he believes, is that it has kept in contact with its customers and kept going at a time when other operators were furloughing or laying off their staff. Another factor has been its continued investment in the regions, at a time when many competitors are centralising their operations and closing or reducing the scope of offices outside the major centres.


Wales and West gripped by truck driver shortage


The driver shortage is the number one issue affecting the freight industry in the region, says Chris Yarsley, Logistics UK’s policy manager for Wales, Midlands and South West. The post-Brexit immigration


policy has affected Wales, along with the rest of the UK, making it impossible to hire drivers from the EU.


The industry is trying to recruit


local people, “but we’re fishing in a tight pool,” he says. “And the industry faces challenges with the image of truck driving; with lockdown, many people have had a rethink about their life choices and not everyone wants to be away from home a lot now.” One company alone was facing


a shortfall of about 50 drivers, he told FBJ. Covid has also led to a huge


backlog in driver training and


testing, as all such activity was completely suspended for a time. In fairness, says Mr Yarsley, the government is throwing a lot of resources at the problem but even with unlimited funds, the process of finding, training and testing new drivers will take time, he points out.


Other modes of transport, such


as rail, will only be of limited use in solving the driver shortage problem, he adds. “Rail has its uses, but you still usually need a truck at each end of the journey. Also, the type of goods that are moved by road aren’t what normally goes by rail.” Wales and the west also shares


in many of the other nationwide issues affecting the freight industry, including the shortage of parking spaces. However, there


is no particular problem on the two main east-west axes that cross Wales to and from the Irish ferry ports, although Logistics UK is anxious that drivers should not be forced to park in unsuitable lay-bys. Fortunately, though, Wales has never had to emulate Kent in imposing traffic orders banning truck parking outside designated truck parks. Congestion on the main roads


to Holyhead and Fishguard and Pembroke has been kept in check mainly by the curtailment of passenger car volumes by the Covid lockdowns. But there is the risk that volumes start rising again if and when travel restrictions are liſted. Clean air zones are the other


big issue affecting the local freight industry, particularly in the West of England, Mr Yarsley continues.


ABP looks to a low-carbon future


A masterplan for ABP’s South Wales ports is in development and due to be completed at the end of 2021. The emerging themes are all focussed on the co-creation of zero-carbon growth solutions for the Welsh economy and include energy generation, manufacturing, logistics, and people development. ABP’s ports in Swansea, Port


Talbot, Barry, Cardiff and Newport play a vital role in facilitating trade and providing local businesses with access to European and global markets. The port operator says it is committed to investing in port infrastructure and services to support trade and economic growth, while supporting decarbonisation in industry and the supply chain. The South Wales ports have been successful in attracting port centric activities such as a


plasterboard maker, steel and even a telegraph poles business, and this will continue, ABP emphasises: “Attractive inward investment into Wales is key to creating new, skilled jobs. The plaster board factory is one good example. We’re actively pump-priming several sites across our port estate in preparation and we work closely with customers and the Welsh Government. Ports can play a pivotal role in unlocking low- and zero-carbon growth in Wales.”


ABP is developing plans which


will build on the natural strengths of Wales’ port locations at the heart of local communities to support the growth of new port-centric manufacturing, zero-carbon logistics, and renewable energy generation. It says: “Our plans will support the development of renewable energy projects


across South Wales, enabling the ports to realise their full potential to deliver innovation, growth and regeneration. By working to attract manufacturing businesses on


our port estates where


significant tonnages of import materials are utilised, then the opportunity to reduce sensitive road miles by locating the plant on the port eliminates substantial impact on the South Wales road infrastructure, providing both decarbonisation as well as reduced highway requirements - and a positive impact on road safety.” The Welsh ports and the


maritime industry are vital to Wales. The five ABP ports collectively support 21,800 jobs and contribute £1.5 billion to the UK economy every year. Looking to the future, ”it’s


Bath and Birmingham have both introduced zones, on 15 March and 1 June respectively, and while a lot of work has been put into making operators aware of their existence, they can still pose an administrative burden for those companies that run Euro 5 or lower category trucks that are subject to the charge. A particular bone of contention


is that the payment facility set up by Defra does not include an automatic payment option, which means that transport managers have to continually check which vehicles have entered the zones and make any payments manually. The London system does offer an auto-pay option, which greatly reduces the administrative burden. Bristol is in the process of setting up its zone, and is expected to


clear that the next two or three decades are going to see dramatic structural changes in the economy as it decarbonises and digitises. The pace of this change is likely to accelerate, as technological innovation and scale economies drive cost reductions, which drive further


scale economies. This


change will be rapid, large scale, and very exciting, creating major opportunities for companies and stakeholders which are ready to make the changes necessary.” ABP says its core mission to perform a vital


is trading


role, connecting Wales to the global economy. “That is our commitment and will not change. But we see a new role for ABP’s South Wales ports in future. We believe that they are going to be hugely important assets in helping Wales make the strategic realignments demanded by decarbonisation and digitisation, and will play a decisive role


bring it into operation by about the end of the year – at which point operators will have to keep tabs on trucks operating into three cities in the region. Later, in response to the


announcement that all new road-building projects in Wales will be frozen while the Welsh Government conducts a review, Chris Yarsley commented: “The logistics industry relies on efficient road networks to keep the nation stocked with all the goods our economy needs to function, including delivering fresh food to supermarkets and raw materials for construction; the freeze on all new road-building projects is a step backwards for the country as it recovers from the impact of the pandemic. “It is vital that the Welsh Government recognises the


in Wales’ future economic transformation.” Floating Offshore Wind (FLOW)


has the potential to be a game changer, ABP adds. “Future Wales needs to position itself for a technological revolution in the way that energy is created, distributed and used. This emerging marketplace creates a transformational opportunity for Wales - creating a high- productivity strategic industry, spinning


out thousands of


skilled jobs and new export opportunities. It is likely to become a major strategic priority for the Welsh Government.” There is potential to develop major


a manufacturing hub


for FLOW preassembly and anchoring systems. Port Talbot has the ideal attributes for this, with its deep water, existing land bank, local manufacturing capacity, rail capability and skilled local labour market.


importance of effective road networks to the country’s logistics industry and the role the sector plays in supporting all facets of UK plc. Logistics UK supports extra funding for public transport schemes, as outlined in the findings of the South East Wales Transport Commission: private road users should be encouraged to switch to public transport options, where possible, to reduce traffic, emissions and free up existing infrastructure for other road users. However, this should not come at the expense of new road infrastructure. We are urging the Welsh Government to reverse its decision to freeze road building spending, to ensure that Welsh businesses and industry can continue to trade effectively and keep consumers supplied with the goods and services they need.”


The EU is already funding FLOW


projects in France and Ireland, and floating foundations for UK projects are being manufactured and assembled in other European countries,


including Spain and


the Netherlands. However, Wales still has time to catch up and the opportunity to create an entirely new industry with huge export potential. Freeport policies could be a


starting point, says ABP. The policy, currently being implemented in England, has the potential to further enhance the ability of ports to deliver this vision. ABP has first-hand experience of freeports in England and can bring valuable experience to support the development of a bespoke policy for Wales. This has the potential to accelerate the growth in port- centric manufacturing, renewable energy and innovation, including the


development of floating offshore wind in the Celtic Sea.


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