In Conversation with David Wells, Logistics UK

David addresses recent Transport Managers Conference in Belfast.

DAVID WELLS

LOGISTICS UK’S CHIEF EXECUTIVE OFFICER

Logistics UK’s Chief Executive David Wells is calling for a ‘Year of Logistics’ to highlight the importance of the industry to the wider public, as Export & Freight’s David Stokes learned when we recently caught up with him.

David recalls the issue of driver shortages was top of the agenda when he first took on the role of Chief Executive six years ago. “Today, it remains right up there. In Northern Ireland, for example, there is an estimated shortage of between 2,000 and 3,000 drivers, and it is even worse in other parts of the UK; indeed, 96% of UK logistics businesses are now reporting problems recruiting HGV drivers. “We have recently suggested to the Secretary of State for Transport there should be a ‘year of logistics’ encouraging members throughout the UK to promote opportunities in the industry and raise awareness of our sector as a whole. “We would like to see support for such an initiative from government, from the Northern Ireland Assembly, from careers agencies and other bodies within the industry; we need to put forward a more positive attitude to transport and logistics. “When the public see lorries queued up at Dover, for example, lined up along the roads for hours on end, with no driver facilities, it is not a good image. I recall last Christmas, food parcels were being handed out to those stranded drivers; why would anybody want to sign up for that? “If nothing else, we need out of this crisis a commitment to do something about roadside facilities for drivers; our drivers need to be treated with more respect and understanding. “Too often at distribution centres and depots, drivers are not afforded common decency; we need to fix that. There is a recognition now that we need better facilities for our drivers, but there is not just a driver shortage because other areas within the logistics sector is suffering from a lack of skilled employees, such as in warehousing and IT.” So, what does he suggest to resolve the crisis? “Well, I am glad the furlough scheme has come to an end because that created a distortion in the labour market; it was a good scheme, but now we should be able to see the unemployment level even out, giving us a clearer picture where we actually are, enabling us to focus on promoting job opportunities within the industry, improving working conditions and wages – and we have to start attracting women into the sector; they are badly represented, all of which is why ‘a year of logistics’ would be welcomed.”

NI PROTOCOL

Turning to the latest developments on the Northern Ireland Protocol, David described the EU’s change of stance as encouraging. Negotiations have taken place concerning the level of required data and checks associated with SPS and customs procedures which could reduce administration, costs and time associated with moving goods, especially food products, parcels, medicines and mixed load consignments from Great Britain to Northern Ireland. “We feel it is a step in the right direction,” says David. “There is a definite change in tone, with the EU negotiators going a lot further than we anticipated. They are starting to realise the seriousness of the situation.” However, Government sources have dampened hopes of a breakthrough, saying the two sides were still “far apart on the big issues” with Prime Minister Boris Johnson apparently digging in over the role of the European Court of Justice resolving disputes between the UK and EU. “As far as Logistics UK is concerned that issue is not something that would feature with our members; we are more concerned about the practicalities of the Protocol and its impact on East-West deliveries,” adds David. “So far, we haven’t seen a great deal of detail on what the EU is proposing and, as always, the devil is in the detail.”

David pictured with Logistics UK Policy Manager for Northern Ireland Seamus Leheny.

TRANSPORT INFRASTRUCTURE

On investment in transport infrastructure, he spoke of a recent visit to Belfast and noted that there appeared to be no movement on plans for the York Street Interchange scheme which has been developed to address a major bottleneck on the strategic road network, replacing the existing signalised junctions at York Street with direct links between Westlink, M2 and M3, the three busiest roads in Northern Ireland. The scheme has been bogged down in legalities following the awarding of the multi million pound contract in 2019 after a tendering process. That resulted in a review of the plans which was conducted by an independent panel in 2020 when a number of recommendations were made, six in all, and these are still be considered; a report is expected soon. “The industry would really want to see those issues and others surrounding funding sorted out,” says David. “On the plus side, the A6 and A1have progressed very well. “Looking at the wider issues on transport infrastructure for decarbonisation, while the industry is fully behind it, there is little direction on the way forward because it is not clear which technology is going to come to the fore. “Electric rigids are certainly emerging, but the issue is going to be the charging infrastructure and that’s where government spending needs to be focused to make it as accessible and cost effective as possible. While our members have committed to the phasing out of diesel, there are still many question marks about alternative fuels, for example, over the mass production of hydrogen; it is a lovely fuel and I can see the attraction of it, but it feels like a long way off.”

FUEL DUTY

David has also called for a permanent freeze on fuel duty. There was another freeze on duty in the recent Budget, and he has welcomed that. “As the logistics industry recovers from the impact of the pandemic on the economy, and with the threat of price inflation on the horizon, every penny counts for our sector, which traditionally runs on extremely narrow margins,” he says. “While our members are committed to switching to cleaner alternative fuels from diesel, the cost of a new alternatively fuelled HGV makes them challenging for many businesses – despite government grants of up to £25,000 – when, at present, businesses must allow for higher operating costs, leaving less spare cash for investment.” As for his role as Chief Executive of Logistics UK, David says: “When I first came into the organisation, I was asked if I would find it boring, but I remember saying that the job is what you make it and 15 years on with Logistics UK, previously the Freight Transport Association, I can honestly say the job has been a lot of things, but it has never been boring!”