An agenda for change
In a highly fragmented logistics industry that faces unprecedented challenges and change, collaboration across sectors and transport disciplines is essential
Freight by Water’s Agenda for Change moved to Liverpool this week for our second Modal Shift Forum. Concentrating on UK shortsea and coastal distribution to and from the North-west and increased utilisation of Merseyside and the Manchester Ship Canal, the forum supported Freight by Water’s ambition to facilitate the development of cost-effective and sustainable supply chains for major businesses.
Some 100 delegates took the opportunity to engage in some lively discussion on a range of topics related to modal shift and the necessity for alternative methods of transportation.
Some key themes emerged. Most notably, espoused by Nick Gazzard’s paper entitled Re-Thinking Your World, a clear consensus validated the compelling case for change, against the background of increasing fuel costs – a phenomenon unlikely to change, given the world’s limited oil reserves and the government’s reluctance to reduce excise duties and other penalties on road users.
Regarding a greater use of shortsea and coastal distribution to and from the £100 billion (US$152bn) economy in the North-west, exporters and importers can be encouraged that, for the most part, the infrastructure is in place.
Presentations from Mersey Partnership, Peel Ports (owner and operator of the port of Liverpool and the Manchester Ship Canal) and Mersey Maritime (the region’s own maritime cluster organisation), illustrated the strength and competitive edge of existing capabilities and networks in the area, with further investments planned, such as a new post-panamax terminal at Seaforth.
Peel showcased its barge shuttle service on the canal, and, although doubling its capacity recently due to growing demand, reported that the canal was only working at half of its capacity.
Several presentations established the clear link between cost and environmental drivers. Several examples provided clear evidence that a reduction in supply chain costs was, in most cases, likely to result in a lower carbon footprint. The correlation between profitability and sustainability is resonating at these forums, with an accelerating pace to manoeuvre the supply chain to create the virtuous circle of the future.
Ian Brooker of Peter Brett Associates substantiated the cost of water freight as the cheapest mode of transport on a point-to-point basis, as long as the start and finish points are at or near to origin and/or final destination, with the capability to add more value by operating as more than a basic interchange.
This, of course, is the logic that supports the concept of port-centric logistics, picked up by Mike Garratt, of MDS Transmodal, in his presentation.
Andy Rickard, of Liverpool Produce Terminal (LPT), presented a case study to embrace a number of these key themes. Working in conjunction with retailers and MacAndrews, an operator of shortsea services to and from Iberia, Andy was able to demonstrate the power of collaboration and the strength of a value proposition driven by “cost first, green benefit second”.
An interesting characteristic of LPT’s model, from Freight by Water perspective, was the shared-user feature. I am an advocate of regional distribution centres located adjacent to ports, capable of supporting flexible port of entry strategies that may include coastal distribution around the UK. The development of shared-user distribution centres on a port-centric basis could be the next big opportunity for 3PLs and ports.
Steve O’Connor, MD of Stobart Ports, provided an interesting insight to Stobart’s developments at 3MG (Mersey Multimodal Gateway) at Widnes, and a striking overview of the recent investments by the road haulage group into ports, rail and multimodal services.
Steve’s explicit message supported the view that road transport as we’ve known it is unsustainable in the future, and that change will happen. He emphasised that the modal shift debate should not be concerned about a choice between road, rail and water; the focus should centre on the best combination of all three.
Road will have its place, and the challenge is to build the most effective combination of intermodality, and shorten the first mile/last mile by road wherever possible.
In a highly fragmented logistics industry that faces unprecedented challenges and change, collaboration across sectors and transport disciplines is essential. Policy, regulation, supply, demand and all manner of support services have to be co-ordinated for our economy to recover, grow and succeed.
Some 100 delegates took the opportunity to engage in some lively discussion on a range of topics related to modal shift and the necessity for alternative methods of transportation.
Some key themes emerged. Most notably, espoused by Nick Gazzard’s paper entitled Re-Thinking Your World, a clear consensus validated the compelling case for change, against the background of increasing fuel costs – a phenomenon unlikely to change, given the world’s limited oil reserves and the government’s reluctance to reduce excise duties and other penalties on road users.
Regarding a greater use of shortsea and coastal distribution to and from the £100 billion (US$152bn) economy in the North-west, exporters and importers can be encouraged that, for the most part, the infrastructure is in place.
Presentations from Mersey Partnership, Peel Ports (owner and operator of the port of Liverpool and the Manchester Ship Canal) and Mersey Maritime (the region’s own maritime cluster organisation), illustrated the strength and competitive edge of existing capabilities and networks in the area, with further investments planned, such as a new post-panamax terminal at Seaforth.
Peel showcased its barge shuttle service on the canal, and, although doubling its capacity recently due to growing demand, reported that the canal was only working at half of its capacity.
Several presentations established the clear link between cost and environmental drivers. Several examples provided clear evidence that a reduction in supply chain costs was, in most cases, likely to result in a lower carbon footprint. The correlation between profitability and sustainability is resonating at these forums, with an accelerating pace to manoeuvre the supply chain to create the virtuous circle of the future.
Ian Brooker of Peter Brett Associates substantiated the cost of water freight as the cheapest mode of transport on a point-to-point basis, as long as the start and finish points are at or near to origin and/or final destination, with the capability to add more value by operating as more than a basic interchange.
This, of course, is the logic that supports the concept of port-centric logistics, picked up by Mike Garratt, of MDS Transmodal, in his presentation.
Andy Rickard, of Liverpool Produce Terminal (LPT), presented a case study to embrace a number of these key themes. Working in conjunction with retailers and MacAndrews, an operator of shortsea services to and from Iberia, Andy was able to demonstrate the power of collaboration and the strength of a value proposition driven by “cost first, green benefit second”.
An interesting characteristic of LPT’s model, from Freight by Water perspective, was the shared-user feature. I am an advocate of regional distribution centres located adjacent to ports, capable of supporting flexible port of entry strategies that may include coastal distribution around the UK. The development of shared-user distribution centres on a port-centric basis could be the next big opportunity for 3PLs and ports.
Steve O’Connor, MD of Stobart Ports, provided an interesting insight to Stobart’s developments at 3MG (Mersey Multimodal Gateway) at Widnes, and a striking overview of the recent investments by the road haulage group into ports, rail and multimodal services.
Steve’s explicit message supported the view that road transport as we’ve known it is unsustainable in the future, and that change will happen. He emphasised that the modal shift debate should not be concerned about a choice between road, rail and water; the focus should centre on the best combination of all three.
Road will have its place, and the challenge is to build the most effective combination of intermodality, and shorten the first mile/last mile by road wherever possible.
In a highly fragmented logistics industry that faces unprecedented challenges and change, collaboration across sectors and transport disciplines is essential. Policy, regulation, supply, demand and all manner of support services have to be co-ordinated for our economy to recover, grow and succeed.
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