Viewpoint

A long-term solution to the HGV driver shortage?

The need to tackle the many problems facing the UK transport sector is becoming even more urgent, says Robin Woodbridge, Head of Capital Deployment at Prologis UK

With HGV driver shortages creating a widescale fuel crisis last October, that some say could have been avoided with a more creative approach to logistics and transport, coupled with the UK’s aim to reach net zero carbon by 2050, a long-term solution to this problem is yet to be put forward by the Government. As the gravity of the crisis only seems to escalate, what can be done to reach an effective solution, and could rail offer an answer?

How did we get here? The Covid-19 pandemic is only one of the many factors contributing to pressures facing domestic and international supply chains. Whilst no one could have foreseen the lasting impact of the pandemic, many argue that problems around moving goods around the country were already rising. The combination of an ageing driver base, a lack of skilled workers entering the sector, low pay and in many cases, substandard driver conditions, had all taken their toll on the sector, long before the pandemic took effect.

Suddenly, potential new drivers were not able to take HGV tests, and the demand on home delivery rose exponentially, putting an even more significant strain on the sector. With Brexit also meaning many European drivers decided to leave to leave the UK, the country now finds itself amid a supply chain crisis that is rapidly becoming more serious.

Even as the Government invites 5,000 EU drivers back to the UK on temporary visas until March 2022, there is still an absence of a long-term solution to the problem. With the Road Haulage Association (RHA) suggesting that the UK is short of 100,000 drivers, a boost of 5,000 is unlikely to make a significant difference. With this in mind, more must be done to encourage businesses to think creatively about their logistics operations, allowing them to move goods in a sustainable cost-effective way.

Covid isn’t the only crisis Covid-19 isn’t the only ongoing global crisis and climate change was a pressing issue long before the pandemic. In 2019, the Government set out targets to achieve net zero carbon emissions by 2050, requiring a major overhaul of all industries. Efficient use of energy, extensive electrification of both transport and heating, and the development of a hydrogen economy must all be focused on if these ambitious targets are to be achieved.

The UK’s repeated lockdowns did have a positive impact on carbon emissions in 2020. The Climate Change Committee 2021 Progress Report showed that UK emissions decreased by a record amount in 2020, down 13 per cent from the previous year. However, as the world begins to stabilise again, new problems facing travel, supply chains, and ultimately the environment, continue to rear their heads, making the need for immediate, long-term action more necessary than ever before.

A sustainable solution A major alternative to road logistics is rail freight. Benefiting the environment and tackling the driver shortage, this mode of transportation is one which could have a tremendous impact, not only on the logistics sector, but on the economy too.

Moving goods across the country by train is not a new solution. Its importance was evidenced during the pandemic, when the Government called upon the rail sector to deliver vital PPE, food and supplies across the country. However, tapping into this mode of logistics requires logistics properties across the country which have connections to both major rail lines, and to road networks, allowing for a smooth interchange of freight.

Prologis RFI DIRFT, the UK’s largest multimodal logistics park, is an example of a location which serves both modes of freight. Situated in the logistics “golden triangle”, which spans from Northampton to East Midlands Airport in the North, and West towards Birmingham, the park is classed as nationally significant infrastructure. DIRFT is home to several national brands, including Tesco, Sainsburys, DHL and Royal Mail, which are already using rail to strengthen their logistics operations.

Rail freight is also playing a crucial role as supply chains push to become cleaner and greener. In comparison to diesel road freight, diesel rail freight is a much more sustainable mode of transport. Each freight train removes approximately 76 HGVs off the roads, reducing carbon emissions in the logistics sector, whilst alleviating the pressure on HGV drivers. These sustainability credentials will only improve further as the UK’s electrification projects progress and the potential for non-diesel rolling stock increases.

Two areas of rolling stock innovation are hydrogen and battery powered trains, both of which will have a positive environmental impact on passenger travel and freight. Allowing trains to travel faster, reducing CO2 emissions further and enabling cost efficiencies are some of the benefits widespread electrification will create.

However, one of the main criticisms of rail freight is the negative impact it has on passenger services. Whilst sacrificing commuter rail space does not aid sustainability efforts, considering the decline of commuters due to the pandemic and working from home, it may be a long time before commuter numbers ever reach their same level as pre-pandemic. In this time, advancements such as HS2 will improve rail availability for commuters, freeing up more mainline capacity for freight services.

Moving forward Navigating out of this crisis is not going to be an easy task, but it is a necessary one. As 2050 edges closer, the Government must make long-term sustainable choices by making the most of the resources at hand. Across the board, rail freight continues to be an environmentally and economically effective alternative to road freight alleviating the pressures of the HGV driver shortage and helping the UK’s push to net zero.

Robin Woodbridge is Head of Capital Deployment, Prologis UK

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