UK strategy stresses need for port capacity

Setting out the UK government’s conclusions on the need for advancing port infrastructure, a new draft National Policy Strategy (NPS) has highlighted the need for increased investment over the next two or three decades and projects a definite requirement for increased capacity in the years ahead, despite the current downturn.

 The interim review from the UK Department of Transport (DoT) states: “The availability of sufficient port capacity is a potentially significant constraint on future economic growth", and flags up hinterland congestion as a growing problem.

The DOT expects overall demand between now and 2030 to grow by around 1% per annum in tonnage but with containers, ro-ro and liquefied natural gas growing much faster at around 3. Further, it notes that high demand peaks could delay boxes “significantly” if future capacity problems go unaddressed. “Recently approved expansions, as at Felixstowe/Harwich, London Gateway and Mersey, should help to ease these constraints to around 2020 — but our forecasts suggest that further capacity will be needed beyond that time,” the review concludes.

However, the review notes, UK port developments are the subject of two new White Papers, complicating the matter. The Government's intentions for reforming the wider planning process for handling major infrastructure projects, including port developments have been set out in Planning for a Sustainable Future.

Meanwhile, proposals for marine planning were set out in another consultative White Paper, A Sea Change, “which will bring about similarly radical changes in the marine environment", says the DoT review. These include the establishment of a Marine Management Organisation (MMO) which will in future help to streamline the planning process for harbour developments below the scale of major infrastructure projects.

Industry reactions to the NPS have been so far positive. Christopher Snelling of the Freight Transport Association, said: “Particularly pleasing is the recognition that capacity should ideally be greater than the level of demand. This would help make UK port operations more competitive and provide greater resilience in the UK supply chain when disruption occurs.”

Mr Snelling added: “Up until now the planning process has been painfully slow – something which benefits neither local residents nor developers. It took the port of Southampton seven years and £45m to get a decision on a previous development plan – that is bad for everyone.” He goes on to say that the new NPS will help get things moving for ports and “allow us to play catch-up with the rest of Europe".

However, it seems there is plenty of scrutinising yet to be done, as UK Major Ports Group executive director Richard Bird bears out. However, he is pleased that “the Government has reiterated that ports are vital to the national economy” and adds that the NPS recognises that judgments about development are best made “on the basis of commercial factors by ports operating within a free market environment”.

While Mr Bird notes that the Government is positive about long term growth prospects, he said that he is “disappointed” that the government has not revised its policy on port developers being made to contribute to national networks expenditure – and calls the idea “ill-advised”.

Also, a number of industry sources are pointing to the way that the NPS will interact with the other new bodies and processes coming into being. Mr Bird says time will be needed to assess how much of the NPS is relevant to decisions to be taken by the Marine Management Organisation set up under the new Marine Act – since this will be covering the vast majority of port development applications.

Consultation on the draft statement runs until 15 February 2010.

 

Source: Port Strategy