TAKING A MULTIMODAL APPROACH

The logistics industry underpins every sector of the economy and is vital to economic growth and success across these islands. It contributed £163 billion alone to the UK economy in 2021, and employed over 48,000 people in Northern Ireland in 2022. It is an agile and resilient sector and one that continues to embrace a multimodal approach.

While the focus is often primarily on road, sea freight plays a larger role than people may assume. Ireland and the UK, as island nations, rely heavily on goods arriving at our shores by sea. In 2022, despite the unresolved issues over trading arrangements for NI, trade between Ireland and the UK continued to expand. According to the Department for Business and Trade, total UK exports (via all transport modes) to Ireland increased by 27.7% in 2022 compared with 2021, while total UK imports (via all transport modes) from Ireland rose 15.9% over the same time period. This correlates with the Logistics UK Industry Survey 2022/23 in which respondents reported the majority of container imports to the UK come from the Republic of Ireland (38.6%), with the majority of exported containers going to Republic of Ireland (39.4%).

Rail

For goods to successfully reach ports to be exported, or for goods imported for onwards travel across Northern Ireland, efficient road and rail connections are vital. Dedicated freight lines across the island would boost trade, and with each freight train having the capacity to remove up to 76 HGVs from the roads, would also help to protect the environment by reducing emissions. Depending on the goods carried, rail can be more cost-effective than road; a vital saving for businesses in the current economic climate where costs across all sectors are soaring. However, with no rail freight in Northern Ireland, there is a significant amount of work to be done to realise these benefits for our industry, economy, society and environment.

Road

However, while rail has an important role to play in the wider picture, it will never wholly replace road transport. Figures from Logistics UK’s Logistics Report 2023 highlight the importance of road freight, with it accounting for a significant 80.4% of goods moved by transport mode in 2021. The report also highlights how road freight activity improved during 2022 and is expected to progress again during 2023. There are many potential reasons for this, including consumer shopping habits; 26.6% of retail sales were made online in 2022, compared to 19.2% before Covid-19. Where previously, large volumes of stock were being distributed to a singular location, such as a store or warehouse, now, there is also a larger demand for the separate transportation of goods to individual consumers.

The road freight sector’s significance and success is also due, in part, to the vast road network that includes motorways, A-roads and local roads – which all connect cities, towns and villages to distribution hubs. Vital to a connected logistics system, road often acts as the link between other modal types, connecting ports, airports, warehouses and rail terminals. With so many vehicles using the network each day, and with its importance so evident, it is vital that it is maintained and necessary infrastructure upgrades such as the A1 upgrade, and new schemes such as the A5, Newry Southern Relief Road and York Street Interchange are delivered.

Air

While roads famously play a vital role in the movement of just-in-time deliveries, air freight’s reliability also makes it a popular option for the movement of some goods. While air freight can be a more costly method of transporting goods, express freight services via night flights are vital to some just-in-time deliveries. In addition to ensuring consumers receive nextday deliveries, night flights also support a large portion of the economy; according to a report from Airlines UK, in 2019 a total of £16.5 billion in GVA was produced by night flights across the UK between the hours of 23:00 to 06:59. While questions are currently being raised about the practicalities of night flights and the noise they produce, Logistics UK remains committed to working with government to find the right balance between reducing the levels of disturbance caused by night flights, while at the same time supporting the aviation sector and businesses who depend on them. Overall, the supply chain is a highly interconnected system with each mode beneficial to industry, and the economies across these islands. Logistics UK will continue to work with governments and members to maximise the trading opportunities across all modes. To view the Logistics Report 2023, please visit: www.logistics.org.uk/ research-hub/reports/logistics-report