Implications for Transport Infrastructure Investment
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Irish Academy of Engineering BREXIT Implications for Transport Infrastructure Investment January 2018 02/02A/02.18 Sarajevo Belgrade Podgorica Ploce Pristina Bar Tirana Durres Skopje THE IRISH ACADEMY OF ENGINEERING The Irish Academy of Engineering is an all- island body, concerned with long-term issues where the engineering profession can make a unique contribution to economic, social and technological development. Its members are Irish Engineers of distinction, drawn from a wide range of1. disciplines,THE and IRISH ACADEMY OF membership currently standsENGINEERING at 145. Drawing on the experience and knowledge of The Irish Academy of Engineering is an all- its distinguished members, the Academy works Ireland body, concerned with long-term issues to facilitate communication and dialogue on where the engineering profession can make a engineering-related matters. It regularly publishes unique contribution to economic, social and reports and analyses, some jointly with other technological development. learned and professional bodies. Its members are Irish Engineers of distinction, The Irish Academy of Engineering drawn from a wide range of disciplines, and 22 Clyde Road, Ballsbridge, Dublin 4 membership currently stands at 145. Telephone: +353 1 665 1337 [email protected] Drawing on the experience and knowledge www.iae.ie of its distinguished members, the Academy works to facilitate communication and Taskforce Members dialogue on engineering related matters. It Finn Lyden ( Chairman) regularly publishes reports and analyses, Gerry Duggan some jointly with other learned and Cover Image: Denis Healy professional bodies. Section of European Commission Ten-T Core Transprot Network Tom Leahy Corridors Paddy Purcell The Irish Academy of Engineering Tony Smyth 22 Clyde Road, Ballsbridge, Dublin 4 Telephone: +353 1 665 1337 [email protected] www.iae.ie Policy Advisory - Disclaimer The members of the Taskforce and the contributors participated in extensive discussions in the course of a series of meetings, and submitted comments on a series of draft reports. Its contents convey the general tone and direction of the discussion, but its recommendations do not necessarily reflect a common position reached by all members of the Taskforce, nor do they necessarily reflect the views of the organisations to which they belong. Brexit — Implications for Transport Infrastructure Investment 1 CONTENTS Executive Summary 3 1. Introduction 4 2. Dublin Port’s Dominance of Irish Unitised Freight 5 3. Need for alternatives 7 4. Arrival & Departure patterns of Ro-Ro vessels at Dublin Port 7 5. Risk to trade now using the GB landbridge 8 6. Implications of Brexit for Transport Infrastructure Investment 10 7. Conclusions 12 Appendix 1: 13 Appendix 2: 14 Appendix 3 15 2 Brexit — Implications for Transport Infrastructure Investment Brexit — Implications for Transport Infrastructure Investment 3 EXECUTIVE SUMMARY Foreword The Irish Academy of Engineering has completed Academy undertakes an analysis designed to a series of reports on important topics with a help identify appropriate solutions. These reports significant engineering dimension. Normally follow the normal pattern of the Academy’s work these reports focus on longer term issues. But on viz. quantifying problems, examining alternatives, occasions, particularly when external developments proposing cost effective solutions. introduce near term problems or issues the Summary The United Kingdom’s Government stated Brexit strategy over 20% of such traffic. This adds to traffic congestion is to leave both the (EU’s) Single Market and Customs on the M50 and its approaches and the considerable Union. Given Ireland’s geographic location, the fact that employment created in the supply chain management, it is one of the most open economies in the world and transport and logistics sectors in the Greater Dublin that a very high proportion of our goods trade, in volume Area adds to housing demand and unbalanced regional terms, is either with the UK or passes through the UK, development. It also raises significant issues as to supply the outurn of the Brexit negotiations is clearly of critical security. importance. But at present while hoping for the softest possible Brexit prudence demands that we plan for a With appropriate and timely investment in the South hard Brexit. Coast ports and the transport infrastructure serving them, a significant portion of the unitised trade now using Dublin Except for fuels, ores, grains and transport equipment Port could be diverted to those ports, with their shorter the vast bulk of our goods exports and imports are sailing times to Continental Europe. This would benefit transported in trailers on roll on roll off ferries (Ro-Ro) or Dublin itself, the regions along the Atlantic Corridor and in containers on load on load off vessels (Lo-Lo), which Irish exporters and importers. together are described as unitised freight. In the case of Ireland’s unitised trade with Continental Europe much of Achieving this will however require a significant change this passes through Dover. But the port estate in Dover is in Government policy, in relation to port development very small, in relation to the volume of traffic handled and and funding. It will also require considerable investment, is unsuited for handling a customs regime with the EU. as was made on the routes serving Dublin Port in the Thus alternative transport routes may be essential. past and in additional shipping capacity. But given the potential disruption posed to Ireland by Brexit and the The Brexit problem is made more difficult by the fact changes it implies for the EU’s Trans European Transport that almost 85% of Ireland’s unitised trade now passes Networks, EU and EIB funding may well be available through Dublin Port, in contrast no port in the UK handles provided the required integrated plans are developed and submitted, as soon as possible. 4 Brexit — Implications for Transport Infrastructure Investment 1. INTRODUCTION The United Kingdom’s Government stated Brexit strategy The position is made even more difficult by the fact that is to leave both the (EU’s) Single Market and Customs much of that Ro-Ro traffic uses the port of Dover to reach Union. But the recent joint report from the negotiators the Continent. Dover is not just by far the busiest Ro-Ro of the European Union and the United Kingdom port in the Britain, handling almost 40% of GB’s Ro-Ro Government on progress during phase 1 negotiations freight units; it is also the busiest in Europe. But the port states, inter alia, that estate at Dover, dedicated to Ro-Ro operations, is only 45ha, one fifth the size of the port estate in Dublin Port, \\“The United Kingdom will maintain full alignment though Dover’s Ro-Ro freight volumes are over two and with those rules of the Internal Market and Customs a half times those of Dublin. Thus, in the event of any Union which, now or in the future, support North- disruptions to the 24hr Cross Channel ferry services South cooperation, the all-island economy and the at Dover, Ro-Ro traffic is queued on the M20, under a protection of the 1998 (Good Friday) Agreement”. procedure known as Operation Stack. This happened on 32 days in 2015, as a result of refugee problems at Calais. \\“In all circumstances the United Kingdom will continue to ensure the same unfettered access for Northern Ireland’s businesses to the whole of the United Kingdom internal market”. At present it is unclear how these contradictory positions can be resolved. Given Ireland’s geographic location and the fact that it is one of the most open economies in the world, Ireland’s external goods and services trade equate to 175% of To highlight the problems posed by Brexit the Port of GDP and a very high proportion of our goods trade, in Dover mounted a display at the 2017 Conservative Party volume terms, is either with the UK or passes through the conference which advised that “If every one of the 10,000 UK, then the outurn of the Brexit negotiations is clearly trucks passing through Dover each day had a 2 minute of critical importance. But at present while hoping for the delay, for passport checks, it would result in a 17 mile softest possible Brexit prudence demands that we plan tailback”. It should also be noted that despite the very for a hard Brexit. significant traffic volumes using the roads in Kent, the Except for fuels, ores, grains and transport equipment M20 has not been extended the final 8 miles to Dover. the vast bulk of our goods exports and imports are Thus it is recognised by both the port authority and UK transported in trailers on roll on roll off ferries (Ro-Ro) or authorities in general that Dover port is incapable of in containers on load on load off vessels (Lo-Lo), which operating any form of customs inspection regime, for together are described as unitised freight. traffic to and from the EU. The Prime Minister, in a recent On an all-island basis Ro-Ro is the dominant mode, speech, recognised the very limited land areas available accounting for almost 75% of unit shipments and over at some UK ports and proposed the creation of customs 95% of those movements are to and from Great Britain. zones remote from the ports. In the case of Dover this Thus, in the context of Brexit, it raises very serious issues facility could possibly be located near Stanford West in as to how this traffic will be affected in the event of the UK Kent, approximately 15 miles from Dover, where Highways leaving the Customs Union. In addition an estimated two England plans a £250m lorry parking area with capacity thirds of our unitised freight traffic to and from Continental for 3,600 vehicles, to relieve queuing on the M20.