Nick Graham, director of transport, & , Wincanton says that with government investment in new roads limited for the foreseeable future, and the state of UK roads getting poorer, something needs to be done to ensure continued safe driving conditions for British hauliers, particularly as commercial road transport continues to grow year-on-year.
The large volumes of products manufactured overseas means inbound container traffic remains high, while the number of retailers and consumers continues to increase. The growth of online sales and their home delivery also has a significant effect on the growth in commercial traffic.
To ensure the continued development of the UK supply chain we need to be safe in the knowledge that our roads are safe and fit for purpose and that congestion is minimised.
At the moment a significant percentage of hauliers on the roads are registered overseas, with the majority coming from mainland Europe. Because of cheaper fuel and lower labour costs these companies can take on local work at a reduced price, which creates a more challenging business environment for many smaller UK hauliers; squeezing margins and restricting opportunities, but there are also health and safety considerations that should not be overlooked.
UK hauliers are required to adhere to strict regulations on O-licence undertakings, health and safety, efficient fuel usage, employment law and training. This means haulage costs need to be slightly higher to manage, but the result is that retailers' and manufacturers' goods are being transported in a safe, ethical and sustainable manner. The UK's road accident record is testament to this commitment.
The Lorry Road User Charge (LRUC) will go some way to address this, while providing funds for much-needed maintenance and development of the UK road network. Although it is not yet definite how the charge will be operated, two things are clear: firstly, it needs to be substantial enough to reduce the impact of the foreign hauliers on the market and, secondly, the process for full reimbursement to UK fleets must be trouble-free and not an administrative burden.
In addition, the LRUC will encourage logistics efficiencies across UK hauliers, including: reductions in empty running; use of smaller, cleaner vehicles; smarter routing.
Vehicle utilisation collaboration schemes will need to be given increased focus if logistics providers are to minimise the effect the cost of the charging scheme has on their business.
This model has been used to good effect in other areas of Europe. For example, the German Maut, the road user charge levied on HGVs on German Motorways introduced in 2005, has enabled profit from the €3.4bn (£2.9bn) revenue stream to be ploughed into road maintenance, with some funds going to rail and inland waterway infrastructure. In addition, empty running has reduced by around 10% and there has been a modest increase in rail transport of around 7%, all achieved with very little diversion onto other roads, as was an early concern.
This required a major investment in vehicle and roadside tolling infrastructure, a cost which must be avoided, or compensated, if the UK scheme is to be accepted by UK hauliers.
It's important action is taken now to ensure UK roads are maintained to a standard that is appropriate for the commercial transport requirements of the UK supply chain.
Here at Wincanton, we are working closely with customers and partners to drive collaboration, improve efficiency, reduce running loads and deliver a sustainable transport platform for the future. However, with traffic congestion set to increase 30% by 2030, these new initiatives will fail if we don't have an adequate road infrastructure on which to drive the supply chain forwards into the future. We await the UK government's consultation proposals for the LRUC with interest.
