Look to the north for more sustainable distribution

PD Ports has added its voice to growing numbers of logistics and supply chain service providers pressing the government to ease the system of distribution from ports to regional distribution centres.

The firm, which makes more than £130M annually and employs over 1,250 people, slammed the government for neglecting transport routes from northern ports in favour of counter-productive investment in the south.

Transport Secretary Geoff Hoon confirmed in November that the government would pump £1bn into road and rail schemes in addition to £10bn for 2009-2014 he pledged in July 2007.

But Martyn Pellew, group development director for PD Ports, said: "This latest injection of cash for road and rail projects in the already congested south is just a perpetuation of pre-existing problems.

"Over three years ago the government's Northern Way initiative identified a £32bn shortfall in the economic performance of the North of England. If the government really wants to help our economy in this crisis and meet the long-term environmental targets that have been laid out in the recent Climate Change, Energy and Planning Bills, then it needs a new direction for a sustainable future."

Pellew said the latest investment would only continue the trend for shipping lines to add increasing cargo volumes on the overcrowded southern UK infrastructure. "It's an investment that will work against itself," he added.

By contrast, Portcentric Logistics argues for bringing cargo for the north of England and Scotland further north via the sea, transferring to shorter distance rail movements. The idea is that this would reduce retailers' shipment delays because products would not be caught up in the UK southern port and road congestion. They would also benefit from lower overall transport costs, cheaper land costs and lower labour rates in the north.

Proponents of the philosophy maintain that money is still needed to connect the East Coast Main Line (ECML) rail route with the ports of the Humber, Tees, Tyne and Grangemouth.

"The UK government cannot continue to neglect the north east and ECML any longer, as this area clearly represents the most logical place for change to begin," said Pellew.