Full use of UK port sector can boost UK’s trade resilience following Brexit

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Full use of UK port sector can boost UK’s trade resilience following Brexit

Report: Full use of UK port sector can boost UK’s trade resilience following Brexit•

The UK Major Ports Group reports that the UK’s port sector has significant capacity to handle more EU-UK trade, an additional 60% of 2018 traffic

  • Risks of delays and congestion can be reduced after the EU transition period if freight volumes use more of the available capacity at other UK ports outside of the France-Kent corridor
  • This would improve the UK’s strategic supply resilience, spread economic activity around the UK and bring important environmental benefits post- Brexit

The UK Major Ports Group (UKMPG), the voice for the UK’s largest port operators, has today released a report revealing that the UK can reduce the risks of delays and congestion after the EU transition period.

With new border processes and controls approaching regardless of any deal with the EU it is critical that the UK prepares now.

The report, released today (Friday 9 October) finds that the UK port sector has significant additional resilience capacity for handling freight flows to and from the European Union after the UK’s departure, if freight flows diversify their entry points to the UK. UK ports outside the so-called ‘Shorts Straits’ of the English Channel (via Calais-Dover in particular) offer significant additional capacity for handling EU-UK freight flows.

This enhanced capacity could be equivalent to around 60% of 2018 flows or the same again as used Short Straits routes, particularly through roll-on roll-off trailers (unaccompanied RoRo) and short sea container modes. The ports, which include terminals around the country, already have the capacity needed to immediately provide greater resilience for supply chains, including food and other essential goods, in 2021 and beyond. Today’s report also estimates that the consequences of checks and other changes to the supply chains currently crossing the Short Straights, and restrictions on the ability of EU HGV drivers to operate in the UK,could mean a 22-60%switch in freight volumes to other UK gateways.

The report highlights the opportunities of supply chains adapting and maximising the UK’s additional port capacity, while fact-checking some of the alleged constraints–some real, some less so.

Highlighting upcoming changes in border arrangements for the movement of freight, the study reflects that the UK will also have to rely on the exports passing through the EU’s customs and border inspection procedures to avoid delays in the UK. This could lead to disruption of supply chains in both directions, emphasising the importance of diversifying freight transport across multiple ports.

The report also outlines environmental benefits from a switch of traffic to a wider network of ports, often closer to the end customer across the UK. This replaces road miles, with associated higher freight emissions and congestion challenges with much lower CO2 sea miles.

This broader spread of traffic flows would also support more port and logistics sector jobs across the UK. Commenting on the launch of the report, Tim Morris, CEO of UKMPG, said: “Today’s report delivers a clear message–there are ports all around our coast able and willing to bolster the UK’s trading capacity. Realising this additional resilience capacity will deliver crucial benefits to the UK in keeping trade flowing in the short and longer terms, as well as contributing important environmental improvements. We urge cargo owners to intensify their preparations for the new border checks and systems that are coming and carefully review their supply chain options, while Government must provide adequate border infrastructure and maintain a level playing field for ports across the UK.’

Rachel Maclean, EU Transition Minister, said:

“Our world-leading ports are fundamental to our success as a global trading nation. We are working with ports across the country to boost capacity and build a greener way of working so they continue to thrive for decades to come.

”Today’s report suggests that the potential reshaping of EU-UK trade flows should increase trade volumes flowing through ports on the East Coast of the UK in particular –from the Thames to Suffolk and onwards to the Humber and the Tees –but also with additional benefits along the South and West coasts. Greater weighting of supply chain resilience and environmental factors would also additionally benefit ports in the north and west

Brexit Resilience Paper FINAL VERSION

For more information please contact: Tim Morris, Chief Executive, UK Major Ports Group

Tel: 07387 091 407

Email: Tim.Morris@ukmajorports.org.uk