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Superport Action Plan Delivering Economic Growth

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Superport Action Plan Delivering Economic Growth SuperPort Action Plan Delivering Economic Growth 2011-2020 Contents SuperPort Executive Committee Members Summary EXECUTIVE SUMMARY 03 The Liverpool City Region SuperPort Committee is a private sector led The opportunities for Built on its history as a great maritime trading stimulate economic growth and job group established to drive forward SuperPort to deliver business growth SuperPort are global centre; Liverpool City Region’s ports, airport, creation and raise the profile of the CREATING A SUPERPORT IN 04 and job creation. road, rail and logistics assets, together provide City Region as a gateway of international LIVERPOOL CITY REGION and can transform an established economic driver. stature. These projects include the the economy of development of a deep-water EXISTING ASSETS & CAPABILITIES 06 New, lucrative markets are emerging from Post Panamax in-river terminal at the Liverpool City Region. Brazil to China and from Russia to India. Port of Liverpool and the expansion of LIVERPOOL CITY REGION’S 12 Technological advances such as widening 3MG, the Multimodal Gateway operated POTENTIAL the Panama Canal to accommodate the as a partnership between Stobart Group, world’s largest vessels are opening up Prologis and Halton Borough Council. WHERE GROWTH WILL COME FROM 14 new trade routes. Economic analysis by AMION Consulting Peter Nears Steve O’Connor Joe Przeworski Jim Teasdale POTENTIAL CHALLENGES 16 SuperPort Committee SuperPort Committee Ineos Chlor Limited Mersey Maritime Businesses are placing increasing emphasis (p14), based on available trend and TO OVERCOME Chair Deputy Chair Group on moving people and freight both at the capital investment project intelligence, Peel Holdings Stobart Ports (Management) Ltd lowest possible cost and at the lowest has forecast the potential for over 21,000 ACTIONS TO MEET THE TARGETS 18 possible carbon output. new jobs and an additional £6.1bn of GVA to be created through SuperPort by 2020 APPENDIX 1: 26 Retailers and manufacturers are increasingly and nearly 30,000 new jobs and an SUPERPORT EVIDENCE BASE seeking port centric locations close to large additional £18.3bn of GVA by 2030. centres of population to base value-adding APPENDIX 2: 28 £1.8bn activities and distribution, reducing freight Alongside the physical infrastructure, SUPERPORT PANEL MEMBERS New infrastructure costs and duplication in the handling of the Action Plan sets out the operational developments goods and reducing the time goods take programme for engaging ports, carriers, to reach the customer. importers, exporters, manufacturers and Barry Flynn Gary Hodgson Andy Wallis Kevin Adderley retailers and their current and prospective Ernst & Young Peel Ports (MDHC) Sefton Council Wirral Council Liverpool City Region, with its central position supply chains with SuperPort, creating in the UK, and situated in the largest economic new markets and transforming existing region in the UK outside of London, is an ideal ones, for their benefit and that of the TMP – Executive Team (SuperPort) £18.3bn location to take advantage of these trends, Liverpool City Region. Additional GVA by 2030 offering a cost-efficient, low carbon SuperPort delivering compelling, competitive advantages The plan will be driven forward by the for business. SuperPort Committee and Panel which comprises leading figures from the port, The opportunities for SuperPort are global logistics and wider business community in scale and have the potential to transform and public sector, working with the the Liverpool City Region economy. Executive Team from The Mersey 30,000 This SuperPort Action Plan contains over Partnership. Lorraine Rogers Mark Basnett Mark Butchard Potential new jobs Chief Executive Director of Strategic created by 2030 £1.8bn of new infrastructure developments Investment Development Manager that will build upon existing assets to SUPERPORT COMMITTEE 02 03 Creating a SuperPort in Liverpool City Region New and expanding Liverpool City Region has a unique maritime To achieve this SuperPort will focus on RENEWABLE ENERGY COST/CARBON/CONGESTION REDUCTION history stretching over 500 years and reaching a number of highly significant trends international markets, out across the world. and schemes that collectively make a Proposed investment in wind farms around In the face of increasing fuel and road freight and the drive to develop compelling case for SuperPort. the coast of the UK supported by major costs and carbon reduction targets, businesses corporate giants such as Centrica and E.ON are actively scrutinizing how to reduce their cost-effective means to New and expanding international markets, and the drive to develop innovative and WIDENING OF PANAMA CANAL offer high value opportunities in manufacturing road mileage and with it their costs and carbon serve them, present cost-effective means to serve them, and logistics across Liverpool City Region. impact. Movement of goods by water and rail is present exciting new opportunities. In 2015 the Panama Canal will have been These investments are estimated to be worth much more cost and carbon efficient per mile exciting new widened to allow much larger vessels to over £100bn in economic value for the UK and than by road. 3 opportunities. The Port is handling more cargo than at any cross from the Pacific to the Atlantic and £15bn for the Irish Sea Zone alone. The City time in its history, Liverpool John Lennon vice versa. This will open up new highly Region is also well-placed to develop a Given Liverpool City Region’s central location Airport continues its impressive performance lucrative markets for Atlantic facing ports servicing role for this emerging sector. for UK and Ireland, and the connectivity of and the logistics industry across the region with the right infrastructure to handle the Port, Ship Canal and rail/road hubs to is flourishing. them. The Mersey ports are ideally PORT CENTRIC LOGISTICS - RETAILERS the strategic transport network, it provides positioned to exploit this opportunity. a highly competitive position for the onward The growing importance of ports in supply Major capital investment, led largely by the distribution of goods, enhanced further by CONTAINER GROWTH chains is likely to generate more demand for being easily within one truck day of the largest private sector, is at the core of developing warehousing linked to Port Centric Logistics SuperPort. It will create an infrastructure economic catchment area outside of London. Long-term forecasts suggest that national which, in turn, is likely to lead to more demand SuperPort can enable business to exploit these with the capacity to handle significantly container volumes will continue to grow for warehouses at, or close to, major ports higher volumes of freight and passengers competitive advantages themselves and for significantly over the next 20 years with and/or at multi-modal inland port locations. the benefit of Liverpool City Region. and support thousands of new and the continued migration of production of Existing evidence suggests that a Port Centric existing jobs. 1 consumables to low cost economies . Logistics model involving a National BUSINESS DEVELOPMENT China will continue to dominate the market Distribution Centre (NDC) at the port of import The cost and carbon efficiency of operating for consumables imported into the UK by can significantly reduce total transport SuperPort is far more than simply a collection within SuperPort will stimulate demand major retailers, coupled with the increasing distances and costs compared with a traditional of port, airport and logistics infrastructure. across national and international markets, economic impact on the world of all the NDC model, where imported products are It is a facilitator for growth for the wider with investment in infrastructure being BRIC countries (Brazil, Russia, India and transported from port to a centrally located business community and an agent for improved driven by the potential to secure significant China). Liverpool City Region has an NDC before onward distribution to retail stores.4 business competitiveness. Liverpool remains a business growth and expansion. This growth opportunity through SuperPort to develop centre for shipping services from legal services will contribute to the rebalancing of the new and lucrative trading relationships in Liverpool City Region already has a sizeable to freight forwarding and as international trade Liverpool City Region economy from public these markets. (BRIC forecast GDP growth array of national brand retailers such as Shop grows there are significant opportunities to sector dependency to private sector driven for 2010 was buoyant, with Brazil 6.5%, Direct, Home Bargains, Matalan and B&M that build upon these traditional strengths. investment. SuperPort can also play a role Russia 5.5%, India 8.2%, China 11.1% have major distribution centres close by, taking in rebalancing the national economy by compared to UK at 3%)2. advantage of the benefits of the location. encouraging growth within the North. UK GDP: - Bank of England) (1) King Sturge – Property Supply & Demand Audit for Liverpool SuperPort (2010) (3) ARUP – Liverpool City Region Offshore Wind Energy Study (2010) 04 (2) BRIC GDP Growth projections 2010: OECD (Organisation for Economic Cooperation and Development) (4) King Sturge – Property Supply & Demand Audit for Liverpool SuperPort (2010) 05 Existing assets &capabilities Liverpool City Region already has a a GVA of about £1.1 billion per annum5. cargo from both the Irish Sea Roll-on/Roll-off The port facilities include the dock system in Liverpool Port is formidable portfolio of port, airport This contributes over 5% of the City and the traditional deep sea Load-on/Load-off Liverpool itself, Birkenhead Docks, Tranmere and logistics related infrastructure and Region’s GVA and provides higher average markets. Based on inland road and rail costs, Oil Terminal and the Bromborough riverside ranked 7th in the UK in core capabilities, providing a firm foundation GVA per employee at £34,600 compared to for the inland distribution of deep sea berth, the latter owned by the Victoria Group. terms of total tonnage for the future development of SuperPort. a Liverpool City Region average of £26,0006.
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