Consolidation centres will fail unless their use is considered at a very early stage in a town's development, says business consulting firm Arup. The company's logistics director, Andrew Gough, was speaking at a zero emissions conference last week, in which he also argued that one of the biggest questions consolidation centres face is who will pay for them.
The inclusion of consolidation centres in local transport plans has become commonplace in recent years, as councils strive to ease congestion and cut carbon dioxide levels in towns and cities. Gough says that one of the few successful consolidation centres in the UK is the one that serves Sheffield's Meadowhall centre. He adds that other cities, including Norwich and Bristol, are struggling to attract interest or create a self-sufficient hub.
He says: "Many of the businesses fail. There doesn't seem to be an economic argument for consolidation Arup is looking at a more inclusive financial model. If we consider it early enough, at the masterplan stage, there are potential stakeholders out there that can see long-term benefits from the investment." Gough also says problems arise when contracts prevent logistics providers from combining resources.
He explains: "Their contracts with the retailers says they can't consolidate work, except if it's for non-competing clients there's competition at the point of congestion."
