PORT & TERMINAL PLANNING

SUPERCHARGED FREE PORTS THE EVOLUTION OF PORT-CENTRIC LOGISTICS

Geoff Lippitt, Business Development Director, PD Ports, Middlesbrough, UK

The concept of portcentric logistics isn’t embrace technology further and make it an South East England and then moved inland new and many will say it has been around almost unique UK offering. by road to nearby Bury St Edmunds. Here, almost as long as ports themselves. Bulk cargo can also benefit from port- the containers were de-vanned, stored Today, it is an integral part of supply chain centric operations too, and we have applied and then delivered to the north by road management and in the UK PD Ports has the same principles and the same approach to the Harrogate manufacturing site (in been one of the leading port operators to to working with these customers as we Yorkshire, northern England). This solution embrace and develop the concept. do with those that rely on containerized had been in place for many years but was Today the vast majority of port-centric goods. This may differ in the types of cargo fast becoming outdated in our digital age. logistics is based around container and handling needs but we still work to Furthermore, Taylors of Harrogate was shipping. Conventionally, the container the same standards to ensure quality and increasingly looking for ways to reduce is unloaded from the ship at the port and reliable operations. carbon emissions and introduce cost then transported to an inland destination savings – in this regard, we at PD Ports felt before being transported again to its CASE STUDY we could help them achieve their targets. final destination. In the port-centric A good example of how port-centric Therefore, PD Ports and Taylors of approach, the container is unloaded (or logistics can add real value into today’s Harrogate worked together to look at a "unstuffed") at the port and its contents supply chains is Taylors of Harrogate, smarter way to move the cargo. After are then transported inland sometimes home to Yorkshire Tea (the UK’s second some deliberation, it made logistical sense as palletised freight. At PD Ports, we have biggest tea brand and market leaders in to re-route containers to Teesport (a key been continuously working to add greater roast and ground coffees). It is a distinct port in north-eastern England) with a flexibility for the distribution of goods. In business and one that requires attention to view to delivering them to Harrogate for this partnership we understand the need detail and an understanding of the special unloading. After an initial discussion, we for co-operation and we also believe that requirements of the customer. Containers suggested streamlining the two processes as port operations change, ports in the for Taylors of Harrogate’s tea and coffee and applying a portcentric logistics north of England have the opportunity to traditionally came through Felixstowe in solution.

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This solution involved de-vanning at Billingham (just inland from Teesport), followed by storage, sampling, collation and delivery for blending and roasting. By storing the containers at Teesport and devanning at Billingham, there has been less need for a buffer stock at Harrogate. As a result of these changes Taylors of Harrogate has been able to do the following: • Reduce storage requirements in Harrogate from 11 days to 2-3 days • Save 130.90 road miles (210kms) for each vehicle moved from Teesport to Harrogate • Achieve a CO2 saving of 6.3 kg per vehicle Following the implementation, David Hinks, Contract Manager for Taylors of Tea remains a key product in Britain, with shipping speed demands increasing Harrogate pointed out how our port-centric logistics solution allowed the organization complemented with a port-centric strategy. With these kind of new strategic to completely rethink the import process. If the proposed Supercharged Free Port opportunities on offer to those of us The new proposed system meant less initiatives were to go ahead, the report states running ports in the present era, whether road miles and lower transportation costs, that this could add £9 billion (US$11.9 billion) in the UK, Europe or beyond, we can learn and allowed the company to significantly a year to the northern English economy, a lot from how each of us is implementing streamline its site in Harrogate. In an which is equivalent to £1,500 ($2,000) a year operations that streamline the supply increasingly troubling situation with regard extra for each household. This should also chain. Looking to the wave of change we’re to climate change and changing demands create as many as 150,000 high-value jobs. experiencing in the industry, it makes sense on speed of delivery, the new system is It is an ideal opportunity to explore a new for us to be talking about a new future and already paying dividends for Taylors of business model, with collaboration between new ways of working strategically, as well as Harrogate. ports at its centre, that will generate new new ways of working together. revenue streams and usher in a new era of SUPERCHARGED FREE PORTS interconnected logistics. So what is next for portcentric logistics? Well, it seems reasonable that the next CONCLUSION evolution for port-centric logistics could If Teesport was to gain free port status, it involve the free port concept. Free ports would mean products could be imported ABOUT THE AUTHOR are geographical areas that allow goods into the area, manufactured and exported to be imported into a country without again without being subject to tariffs and Geoff joined PD Ports as Group Business paying import tariffs until they leave this import procedures. The port's deep water Development Director in 2011. In his role area and enter the nation-state in which access and well connected land transport at PD Ports, Geoff is responsible for driving they are based. A recent report from make it the ideal port to once again lead the commercial business development international consultants Mace reported port-centric operations in the UK into its activities across the Company. He has on the benefit of creating ‘Supercharged next era of making supply chains work been instrumental in driving forward Free Ports’ which introduce the idea of efficiently, optimally and as environmentally relationships with Transport for North and combining the aforementioned free ports efficiently as possible. continues to play a key role in lobbying with enterprise zones (enterprise zones are PD Ports has invested heavily in the region for critical improvements to UK transport locally designated areas subject to tax relief – seeing £1 billion ($1.3 billion) invested at infrastructure as part of the Northern to encourage private investment). Teesport over the last ten years (since 2009) Powerhouse agenda. The report suggests Supercharged – directly by the business and through Free Ports should be located around third-party investors. The investment has ABOUT THE ORGANIZATION existing industrial clusters across the been in critical and new infrastructure to north of England in order to turbo-charge provide a platform that will support the PD Ports is one of the UK’s major port economic growth and trade at Teesport and growth of international trade, and this is groups with a reputation for excellence Hartlepool , as well as other northern ports because we see a real opportunity to create gained from decades of experience and a and Manchester Airport. This is very much a new model of port and cargo operations highly skilled workforce. Headquartered in line with the broader aim of Britain’s that will make a difference to our customers in North East England, PD Ports owns to reawaken the economic power of the and the wider region. and operates a number of ports and north of England, known as the ‘Northern Furthermore, such a strategy allows warehousing facilities across the East coast Powerhouse strategy’. Such a strategy for improved sustainability regarding the which have the capability to handle various would see Britain no longer dominated environment due to less empty running types of cargo, safely and efficiently. predominantly by London, but such a costs as a result of ‘moving the goods, rather strategy depends on the UK government than the container. This is increasingly ENQUIRIES to commit to investing in transport important to modern businesses, infrastructure to improve connections consumers, customers and one’s brand, Web: www.pdports.co.uk between and within the north’s towns, and we see it as incredibly important as we Email: [email protected] cities and counties, which would then be move into the 2020s. Tel: 01642 877000

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