Last Mile: Logistics 2023 by James Bompas

LOGISTICS 2023

Last Mile

www.iceniprojects.com iceni-projects iceniprojects iceniprojects

LOGISTICS 2023 2

Introduction This is the third instalment of our annual insights into the industrial and logistics markets, which this year provides a particular focus on last mile logistics as a key sector. In terms of overall market trends, many of the challenges discussed last year persist. These encompass: Planning-through-appeal; Challenges concerning intensification in London; and The scarcity of power and a labour force in specific regions. However, it’s not all negative. The industrial and logistics sector has been making strides in sustainability, and there exists healthy competition within the sector to challenge the established norms and enhance social value. On a broader scale, numerous companies are now seeking to reduce their carbon footprints. According to the International Transport Forum1, international trade-related freight transport presently accounts for 7% of global carbon emissions. Furthermore, we’ve become more mindful of how geopolitical events can impact supply chains, particularly in the semiconductor sector. Resilience and robustness have become paramount. In the latter part of 2022, we observed some market corrections, partially triggered by Amazon’s announcement of excessive space holdings in

the UK. While we might not have fully returned to those levels, the outlook seems to be more positive. Vacancy rates remain below the 10-year average, on-demand delivery services persist, inflation appears to be receding, the consumer economy remains resilient, and prime stock in welllocated areas continues to be in high demand. Historically, logistics has revolved around cost reduction. However, this paradigm has shifted. A BBC report from August 20232 indicated that the average UPS driver in the United States now earns $170,000 annually. This underscores the value and reliance we place on the sector. These costs are likely to rise as we aim to nearshore more of our purchases. While automation has been proposed as a solution, the realisation of self-driving Heavy Goods Vehicles (HGVs) still seems several years away. Until then, labour shortages will persist. The shortage of drivers from the previous year appears to have eased, with 37% of companies now facing difficulties in hiring drivers, compared to 65% last year. The latest in-demand profession? HGV mechanics! Is there no end to it? The ongoing dichotomy between us as consumers and as neighbours remains. We desire speed, convenience, and choice, yet wish to avoid noise and excessive transport movements. How can we reconcile this nearly impossible predicament? Central locations will continue to gain prominence as our shopping habits evolve. With this in mind, this year’s research has focussed on the increasingly important last mile sector, which has been experiencing notable growth and greater interest as operators seek to respond to consumer demands and improve efficiency.

LOGISTICS 2023 4

Many operators are still at a relatively early stage of developing their model for ultra-urban last mile, and there is relatively little policy or guidance specifically relating to last mile, with significant variations in approach. This can pose a challenge both for developers and local authorities. We explore within this document some of the key issues, opportunities and challenges facing the sector, informed by discussions with developers, operators and local authorities, as well as analysis of the existing and emerging policy context. This includes consideration of the planning, transport and public engagement aspects associated with last mile. For more information, please contact: Matthew Kinghan, Director, Economics t: 07753 222 920 e: mkinghan@iceniprojects.com Stuart Mills, Associate Director, Strategic Planning t: 07771 394 497 e: smills@iceniprojects.com James Bompas, Director, Business Development t: 07736 314 143 e: jbompas@iceniprojects.com

LOGISTICS 2023 6

The Headlines

There is a need for greater recognition of the importance of last mile

The demand for last mile facilities should specifically be considered in future assessments of employment need Local Plans should give greater consideration to the need for last mile facilities and identify specific locations capable of serving this need, which respond to operators’ locational requirements There is a desire for more strategic guidance to inform the development of local policies and strategies

There is a need for better understanding of the last mile concept and specific requirements

Consideration should be given to creating a separate use class for last mile logistics

Within densely occupied and congested cities, last mile facilities are starting to emerge as a solution to transporting goods quickly and efficiently on the final leg of their journey”

LOGISTICS 2023 8

Background

There has been a growing trend towards the use of increasingly urban and centrally located last mile facilities in recent years. Growth in the demand for deliveries, in part fuelled by the e-commerce boom and a shift towards just-in-time deliveries, has resulted in the need for innovative solutions to transport goods from larger warehouses and peripheral hubs to individual customers. Within densely occupied and congested cities, last mile facilities are starting to emerge as a solution to transporting goods quickly and efficiently on the final leg of their journey to homes and businesses.

each morning, which are then loaded onto smaller (often electric) vans or cargo bikes for delivery to individual customers throughout the day. There may be a requirement for the storage/ charging of vans overnight, and internal loading within the unit is often preferred. Key requirements identified by operators include: Minimum 3m clearance height for internal loading Reasonable road access for HGVs (at least 7.5 tonne) Sufficient power capacity to charge electric vans

There are a variety of typologies and models being developed by different operators and developers, however broadly speaking these last mile facilities are located within an urban area sufficiently close to the customers to facilitate swift deliveries, and are notably smaller than the larger warehouses typically seen in the suburbs or on key infrastructure routes outside the city. Recent examples of last mile facilities developed in London vary from 5,000 sqft to over 100,000 sqft. The operation of these spaces will typically involve the delivery of pre-sorted loads via HGV

Good sustainability credentials The benefits of urban last mile facilities include increased efficiency and reduced vehicle emissions, as well as wider environmental benefits such as the conversion of redundant and underutilised spaces to create highly efficient and sustainable buildings. There are also a number of challenges and issues associated with the creation of such facilities, which we discuss further below. Recent examples of last mile facilities include:

DPD Westminster Depot

British Land Paddington

British Land Southwark

5,000 sqft micro-depot

120,000 sqft last mile logistics hub

140,000 sqft multi-level last mile logistics scheme

Planning permission granted 2023

Inbound HGVs unloading parcels for distribution via smaller electric vehicles and cargo bikes

4 floors of flexible logistics space accommodating HGVs, vans and cargo bikes

Opened in 2018 Served by all-electric fleet, with inbound deliveries by electric HGV

LOGISTICS 2023 10

DHL’s London Riverboat Service on the Thames is also an innovative last mile solution. The daily service runs from Wandsworth to Bankside Pier, with final delivery taking place via DHL courier bicycles. This fast and efficient means of transport is particularly focussed on higher value goods and time-critical deliveries. Having discussed with a number of developers and operators, we are aware of several other schemes in the pipeline, reinforcing the increasing interest in such facilities. However some recent proposals have run into difficulties, such as Amazon’s application for the London Wall car park near the Barbican, highlighting the potential challenges that schemes can face.

there is a notable and growing proportion of local authorities across London that consider last mile logistics within their planning policy, led by the strategic direction in the London Plan.

LOGISTICS 2023 12

Different Approaches to Urban Last Mile in London Planning policy is a key factor influencing the development of last mile facilities. Based on Iceni’s experience and discussions with stakeholders, there is significant variation between different areas in terms of the extent last mile facilities are planned for, the preferred locations, level of support and perception of such schemes. We have undertaken an assessment of the planning policy picture across London, reviewing each authority’s adopted and emerging Local Plans to establish whether last mile logistics is identified as a specific policy consideration. Where policies do reference last mile logistics, further detail was reviewed to understand the nature of the policy and particular requirements. The analysis identified a range of different approaches to last mile within Local Plans, with authorities such as the City of London and Newham explicitly encouraging such facilities and identifying preferred locations, whereas other authorities such as Camden, Kingston upon Thames and Lewisham have broader transportfocussed policies encouraging measures such as freight consolidation to mitigate the impacts of the movement of goods. Meanwhile some authorities that do not have specific policies relating to last mile, such as Barking & Dagenham and Merton, do have site allocations which mention last mile as a potentially suitable use.

11 authorities (31%) have an adopted policy that deals with last mile logistics in some form

31%

16 authorities (44%) have a policy either in an adopted or emerging Local Plan that deals with last mile logistics

44%

13 authorities (36%) have a policy (either adopted or emerging) that explicitly refers to last mile logistics (as opposed to a broader policy which would be of relevance to last mile)

36%

64% of Inner London authorities have either an 64% 22%

adopted or emerging policy, compared to 22% of Outer London authorities

Examples At a regional level within the London Plan, Policies SD4 and E4 refer to the need to make provision for last mile distribution uses close to central London. Within the draft City of London Plan, Policy VT2 encourages developers to identify locations for last mile logistics hubs, while Policy VT3 identifies underutilised car parks as priority sites for such facilities. Newham’s emerginag Local Plan refers to priority areas for last mile logistics provision in Policy J1. Brent and Croydon are examples of Outer

In terms of the divide between Inner and Outer London boroughs, it is likely that given the nature of last mile facilities and the need for them to be

London authorities with policies that encourage last mile and micro-consolidation facilities to reduce the impacts of goods movements.

LOGISTICS 2023 14

located in dense, urban locations, policies in the Inner London boroughs have given last mile more of a focus. However, notable exceptions include Islington, Kensington & Chelsea and Southwark, which do not have policies in either their adopted or emerging Local Plans (where applicable). In terms of broader guidance, the GLA is currently preparing an Industry and Logistics LPG document (due to be published later in 2023), which is expected to include additional detail and direction regarding the development of last mile facilities in London. Meanwhile TfL’s Cargo Bike Action Plan advocates the use of cargo bikes as a sustainable last mile solution and discusses some of the potential opportunities and challenges associated with this particular mode of delivery.

Summary Overall, there is a notable and growing proportion of local authorities across London that consider last mile logistics within their planning policy, led by the strategic direction in the London Plan. However the coverage is currently patchy, and the level of detail and nature of such policies varies significantly. Only a limited number of Plans explicitly advocate and plan for last mile logistics facilities as a means of ensuring sustainable and efficient delivery to residents and businesses within their borough. This analysis points to a need for additional focus on the issue of last mile logistics when developing local policies, in order to understand the need for particular facilities and to ensure enough suitable locations are identified for development.

LOGISTICS 2023

Key Issues and Challenges As part of our research, we engaged with a number of key stakeholders, including developers, operators and local authorities to understand the current issues and challenges relevant to the last mile sector. We set out below a summary of some of the main themes that emerged from these discussions, supplemented by further reflections from Iceni’s specialist Engagement and Transport teams.

Whilst this growth trend has cooled more recently, there is still an expectation of longterm growth and a need for more space to accommodate logistics demand in central, urban areas.

LOGISTICS 2023 18

Feedback from Developers and Operators Last Mile is Still an Emerging Concept

Diversity of the Sector

A number of developers are starting to explore the potential to deliver last mile facilities in response to the growing demand from operators. It is recognised that the last mile sector is a relatively new phenomenon, and the details are still being refined in terms of where the optimal site should be located, what it looks like, and how it will be operated.

Various respondents highlighted the diverse nature of the sector. Whilst some operators focus largely on delivery of retail products to customers, others are also geared towards business-to-business logistics for a range of sectors including medical supplies and the storage of theatre and film props.

Developers are exploring the suitability of a range of different sites, of varying scales and locations, while operators are still refining their models to maximise efficiency. There is a general sense that we are still in the ‘proof of concept’ phase and that there is a need for good examples to show how these schemes can work successfully.

There was broad agreement that the operation of a last mile facility does not fit neatly within the traditional B8 use class label, as products are often only stored for a very short period in last mile facilities and they do not operate like a typical warehouse. It was suggested that it would be more appropriate to classify last mile as ‘operational business space’, which may be more usefully categorised in a new use class.

Need for Last Mile Lack of Suitable Locations There was general agreement from all contributors that there is a significant need for last mile facilities, although this is rarely quantified specifically in local authority evidence bases. This need was particularly amplified by the covid boom in online retail. Whilst this growth trend has cooled more recently, there is still an expectation of long-term growth and a need for more space to accommodate logistics demand in central, urban areas. Operators highlighted that they were planning over relatively long timescales and wanted to ensure they were well positioned to serve needs well into the future.

A key challenge is the difficulty in identifying suitable locations where last mile proposals will be supported. There was a perception amongst some developers that such uses are being pushed out of central locations and considered undesirable by local authorities and residents. Whilst the need is greatest in residential and mixed use areas, close to the end-customer, these areas are generally seen as high risk by developers and therefore they are most likely to identify sites within allocated employment sites, where ‘industrial’ uses are more explicitly supported by policy and less likely to provoke significant resistance from local residents.

Perception of Last Mile The general perception of last mile/ logistics facilities was also identified as a key issue. Residents and local Councillors often raise concerns regarding noise and disturbance, and the potential impact of delivery vehicles on the local highway network. In reality, the numbers of vehicles (particularly larger vehicles) serving the units is often fairly limited, and the use of electric fleets and cargo bikes has advantages in terms of noise and air quality as well as broader sustainability benefits. The number and quality of jobs is also sometimes raised as a concern in relation to logistics proposals. Operators and developers noted that whilst automation is increasingly a feature within the sector, this also leads to the creation of skilled, high-tech jobs associated with the implementation and operation of automated systems. Meanwhile the inclusion of an office element and other roles within the warehouse also creates diversity and potential for career progression. The important role that the last mile sector plays within the wider economy was also emphasised by operators. The efficient and sustainable movement of goods is essential to the working of the modern economy, however some respondents suggested that proposals for a last mile facility generally received less support than other employment proposals such as film studios or life sciences. The experience of developers across different areas also emerged as a theme in discussions. Whilst our review of London authorities above

indicates that Inner London boroughs are more likely to have policies in place that seek to plan for last mile logistics, there was a perception that proposals were more likely to be supported in certain Outer London areas. This may be due to greater pressure within certain Inner London areas in terms of competing uses, a lack of available land, and the perception of conflicts between logistics uses and nearby residents.

Quality and Sustainability Given the function and nature of last mile facilities, they are likely to be closer to customers and residents, and more public facing than traditional industrial and warehouse units. As a result, developers cited a particular focus on high quality urban design. Sustainability was also a key feature of recent and emerging proposals, with a focus on employing sustainable energy solutions such as photovoltaics and heat pumps, along with other measures such as rainwater harvesting. Given the location of the sites, they will generally be car-free, and operations often utilise electric vehicles or cargo bikes. Developers indicated that they were generally planning for carbon neutral, BREEAM Excellent and EPC A+ standards in their future last mile developments.

Potential for Co-location Respondents discussed the general trend towards a loss of genuine ‘industrial’ space and the increasing focus on residential-led

development which may include an element of lighter industrial (often Class E) space at ground floor. It was suggested that co-location could be possible between residential and last-mile uses, however the employment spaces must be designed to reflect the operator’s requirements (for example to facilitate internal loading and electric vehicle charging).

Need for Strategic Guidance and a Long-term Solution Given the significant role of logistics within the wider economy, respondents felt that the sector is often overlooked in favour of other priorities such as residential development. As the increasing demand for more urban last mile facilities is still a relatively new phenomenon, there was particular concern that this need was not often considered in assessments of broader economic need, and consequently was not being planned for in a consistent and effective way. The inconsistency between how last mile proposals are considered in different areas was also identified as a symptom of a lack of strategic planning and coordination. The strategic role of the GLA in London was identified as one potential solution, and it is hoped that the emerging guidance will provide greater clarity and direction to boroughs in planning for last mile. However some contributors also identified a need for a national strategy, to give appropriate weight and support to logistics and last mile infrastructure. The recent Future of Freight call for evidence by the Government provides a potential route forward with this agenda.

Given last mile is typically not differentiated from other logistics/ warehouse or wider ‘industrial’ uses, it is impossible to accurately quantify the scale of the need.

LOGISTICS 2023 22

Feedback from Local Authorities Need for Further Information Local Authority respondents similarly highlighted the relatively new and diverse nature of the last mile sector, and expressed a desire for more information about how schemes operate. The lack of many examples makes it difficult for policy makers and decision takers to understand the requirements, benefits and potential impacts of a last mile facility. There was agreement that a last mile facility is different from a typical B8 use in terms of its operation, and that more information from developers and operators on how the units work would be helpful in differentiating between last mile and larger warehouses.

Need for Last Mile It was acknowledged that it is currently difficult to understand the extent of the need for last mile facilities within particular areas. Given last mile is typically not differentiated from other logistics/ warehouse or wider ‘industrial’ uses, it is impossible to accurately quantify the scale of the need. Therefore whilst respondents did suggest that they were aware of a general need and that this appears to have been increasing in recent years, it was difficult to know the extent to which this needed to be factored into strategies for the future development of their areas.

Some respondents expressed a desire to locate last mile facilities at the heart of the communities they serve, to promote sustainable patterns of movement and support their 20 minute neighbourhood vision. This was preferred to strategic employment land, which was considered to be more suitable for traditional employment. Proponents of this strategy explained that they did not anticipate significant conflicts between last mile operations and residents, and referred to existing examples of delivery vehicles servicing local grocery stores (which often have residential above the stores and in the surrounding area) without any significant problems. This approach was however at odds to the approach being taken by some developers, who considered allocated employment sites to be the lowest risk option in terms of potential objections to the proposed use. The developer preference for established employment locations appears to be a response to the concerns of other local authority respondents that a B8/ logistics use may not be compatible with an urban, residential area in terms of noise and the need for HGV access.

Need for Strategic Guidance and Development of Infrastructure There was agreement from the local authority side that strategic guidance would be helpful to ensure a consistent and comprehensive approach to planning for last mile logistics.

Preferred Approaches As identified in the London analysis above, there was variation between authorities in how last mile facilities were assessed and planned for.

The need for infrastructure improvements was also emphasised, such as upgrading cycleways to accommodate cargo bikes and the provision of more electric charging facilities.

Public Perception and Engagement While the delivery of a parcel is well received by most people, the idea of a distribution hub in their neighbourhood often evokes a much less positive response.

Community Resistance Recent case studies from across the UK have shown increasing barriers to the delivery of urban last mile logistics. This has been verified by our own market research which has shown the greatest obstruction to delivery is not a technical matter, but often comes from misinformation and misunderstanding at the local community level. Common misconceptions relate to fears that such uses are loud, polluting and disruptive to those living nearby. Tactics recently deployed by those against last mile logistics have included capturing media attention with highly emotive and well-resourced campaigns and applying pressure on elected Members. The collateral of such movements, such as ‘Nocado’ in Islington and ‘Stop3000 Trucks’ in Milton Keynes, has given rise to ingrained opposition to logistics proposals in general, such as Royal Mail’s proposal at Patchington, Brighton; and DHL’s proposal at Towcester, Northamptonshire. As a result, even logistics hubs of a small scale and nature are not being seriously considered by certain community groups. Instead, it is a matter of principle against any form of such a Use Class being introduced into their local area.

Increasing Demand This is surprising given that demand for local freight transportation has increased exponentially in recent years, with the UK now ranked third for online shopping worldwide. The culture of e-commerce has clearly become embedded within the UK, exacerbated by changing consumer habits and the new norm of flexible working introduced by the pandemic. Most market analysists now predict this trend is here to stay and we are even witnessing the demand for ‘next day delivery’ being replaced by ‘delivery within the hour’ as we become ever more impatient as a nation of consumers. When considering the impact of traditional logistics upon our local communities, approximately one third of transport emissions in the UK originate from freight transport, with road freight in particular accounting for 77% of that figure. Therefore, it is critical that we search for sustainable freight solutions, and we believe ultra-urban last mile logistics have an important part to play.

Last Mile as the Solution Most modern pro-posals have been developed with the latest sustainable technologies embedded into the design from the outset. Operationally, they involve consolidated distribution centres, small EV vehicles, a fleet of cargo bikes, smart scheduling for optimised delivery times, and energy-efficient buildings. As a result, such uses can help to minimise the number of large vans on the road, reduce

traffic congestion and decrease air and noise pollution. This will ensure the safety, health and wellbeing of communities is prioritised, while also supporting UK business. These are all direct and practical benefits to local communities that can enhance quality of life in the short, medium and longer terms. With increasing pressure across every Local Authority to accelerate the transition to a low emission economy, the need to identify sustainable solutions for distribution and logistics cannot be ignored, nor can it be pushed to another location with a simple NIMBY attitude. Just as the UK’s relationship to retail and commerce has modernised, so too must our relationship with logistics and distribution.

The Need for Engagement The key lever to pull on ultra-urban last mile logistics will be early and genuine engagement with local communities; listening to concerns and addressing each point in an objective matter, supported by a wider piece around the many benefits and social value that such a use can bring to the community at the local level. The approach must be evidence based, transparent, and involve a creative reach to capture the voice of the silent majority. By successfully mobilising community support, rather than relying on a strategy to combat objection, it will be much easier to secure political buy-in and help to deliver the ultraurban last mile logistics that we all know we need, and are increasingly reliant upon.

Transport – London

The London Mayor’s Transport Strategy3 sets a clear goal for reducing road transport emissions in London and achieving net zero by 2030. There are challenges in reducing the number of vehicle trips associated with the transfer and delivery of goods when demand is ever increasing. However, there are also opportunities for a co-ordinated approach to achieve a shift from HGV reliance, which involves urban last mile logistics hubs.

Benefits of Sustainable Last Mile Modes The case studies alluded to in this report demonstrate the strides being made by developers, local authorities and transport and logistics operators to work towards this target through urban logistics hubs and the use of sustainable last mile modes. The benefits of using more sustainable modes, such as cargo bikes, are evident, not just in reducing carbon emissions but by being quicker. A study conducted by the University of Westminster4 states that a cargo bike service is likely to be much more reliable and quicker than and equivalent van service due to the bikes being able to take shortcuts bypassing traffic jams and by using cycle and bus lanes. This was corroborated by a distribution operator we spoke to who confirmed that speed savings can be made through ease of being able to park a cargo bike.

Operation A ‘logistics hub’ can be perceived to be a largescale operation with high levels of HGV traffic. The larger scale hubs or fulfilment/ consolidation centres tend to exist in strategic positions on the

outer fringes of London or just outside it. Goods are sorted and consolidated into onward truck/ van deliveries to urban logistics hubs within the city. A handful of these inbound truck/ van delivery trips per day can serve urban logistics hubs, rather than the sometimes-perceived continuous stream of HGVs. At an urban logistics hub (or micro-hub), deliveries are broken down into smaller loads for the ‘last mile’ to be delivered by cargo bike or on foot. The type of operation is dependent on the volume and type of goods and there is not a one size fits all for urban logistics hubs. The operation can be relatively small scale with space required for cargo bike storage and charging. For example, at a micro-logistics hub trial in Pimlico run by Westminster City Council and Cross River Partnership5, a 750 sqft section of existing under-utilised underground car park is being used for the hub. The key is access for vehicles delivering to the hub, density of the surrounding urban area and therefore the ability to keep the cargo bikes full for as long as possible and access to cycle infrastructure for onward cargo-bike delivery. In some cases, the urban logistics hub could also be where the consolidation process takes place (for smaller operators) and therefore more internal space is required. This is perhaps the more challenging to plan for and develop, particularly if retrofitting the hub into an existing space. That’s where planning for hubs within new (large scale) developments provides an opportunity to meet the demand for urban logistics hub space. Furthermore, new residential developments provide an opportunity for centralised parcel

collection points where deliveries can be consolidated, avoiding the need for delivery vehicles to make multiple drops in one location, reducing dwell time.

Challenges Some of the transport challenges of planning for and delivering urban logistics hubs, aside from the public perception point raised earlier, include:

Key Requirements In summary, the key transport requirements for urban logistics hubs include: Density of the surrounding urban area Connectivity to existing cycle infrastructure for onward transit (wide cycle lanes, strategic cycle routes are a plus) Vehicle access (for vans/ HGVs or both), both from a strategic route planning perspective and a practical perspective – headroom and manoeuvrability need to be considered Segregation from other modes to minimise potential conflicts with pedestrians and cyclists Space for cargo bike storage, electric battery charging capability In some cases, space for parcel sorting and consolidation

Operating model has to be viable for operators and customers. In some cases, the additional step in the delivery process could result in delay and/or additional handling costs. This would need to be offset by the speed and efficiency of the last mile delivery (compared to vehicles delayed by London congestion and congestion/ ULEZ charges). The number of existing site opportunities meeting the requirements listed above are limited in urban locations The opportunity for logistic hubs to be provided within new developments competes with need to maximise delivery of housing or spaces for other uses (education, healthcare, amenity space) which could be prioritised over ‘industrial’ land use where this is not allocated or policy driven Possibility that operational hours would need to be limited to reduce noise impacts to nearby residents

Good public transport accessibility for staff Design parameters need to be set to ensure harmony between mixed uses, i.e. maintaining access to allow for efficient logistics operation while minimising impacting on active frontages and primary active travel routes.

Our analysis has identified a need for greater recognition of the importance of last mile.

LOGISTICS 2023 28

Summary and Recommendations There is significant and growing demand for last mile facilities, with a trend for increasingly urban locations in order to respond to customer demand and maximise efficiency. However, our analysis has identified a need for greater recognition of the importance of last mile. There is currently a lack of quantitative assessment to inform an understanding of the scale of need for last mile, and we recommend that this sector is specifically considered in future assessments of employment need. This in turn will help local authorities plan for identified needs. In terms of policy, whilst there is reasonable coverage across London in terms of Plans that mention last mile in some form, few Local Plans explicitly advocate or plan for last mile, and there is significant variation in how last mile is dealt with in different areas. We recommend that local authorities give greater consideration to the need for last mile facilities in their emerging Local Plans, and identify specific locations capable of serving this need, which respond to operators’ locational requirements. This would assist with providing greater certainty and increase the availability of sites, which was identified as a critical issue in our discussions.

We have also identified a need for better understanding of the last mile concept and specific requirements. Developers and occupiers are still refining their models and working to prove the concept, and the sector is likely to evolve as different products are tried and tested. There is a need to explain and discuss the nature and requirements of last mile in a collaborative way with local authorities and residents, and to address concerns regarding the compatibility of last mile with other uses in dense urban areas. The significant benefits of last mile facilities in terms of their economic role and sustainability advantages should also be highlighted. Given the notable differences between last mile operations and a traditional warehouse, there is a case for a separate use class for last mile logistics, which could be more accurately classified as ‘operational business space’ rather than storage and distribution. We anticipate that this sector will continue to grow and evolve over the coming year, and we look forward to engaging positively with the issues, opportunities, and challenges identified in this report.

We have identified a broad desire from both the developer and local authority perspective for more strategic guidance to inform the development of local policies and strategies, which recognises the important role of the last mile sector in the wider economy.

LOGISTICS 2023 30

References

https://www.itf-oecd.org/sites/default/files/docs/cop-pdf-06.pdf

https://www.bbc.co.uk/news/business-66445496

https://tfl.gov.uk/corporate/about-tfl/the-mayors-transport-strategy

https://static1.squarespace.com/static/5d30896202a18c0001b49180/t/61091edc3acfda2f4af7d9 7f/1627987694676/The+Promise+of+Low-Carbon+Freight.pdf

https://www.westminster.gov.uk/news/new-micro-logistics-delivery-hub-opens-pimlico-providezero-emission-deliveries

Birmingham: The Colmore Building, 20 Colmore Circus Queensway, Birmingham B4 6AT Edinburgh: 7 Alva Street, Edinburgh, EH2 4PH Glasgow: 177 West George Street, Glasgow, G2 2LB London: Da Vinci House, 44 Saffron Hill, London, EC1N 8FH Manchester: This Is The Space, 68 Quay Street, Manchester, M3 3EJ www.iceniprojects.com iceni-projects iceniprojects iceniprojects