Transportation May 2010 Strategic Distribution Site Assessment Study for the Three Cities Sub-Area of the East Midlands Final Report Prepared by: ............................................................. Checked by: ........................................................................ Owain Roberts Graham Fry Graduate Consultant Associate Director Approved by: ............................................................. Geoff Clarke Associate Director Strategic Distribution Site Assessment Study Rev No Comments Checked by Approved Date by 4 G Fry G Clarke 10/5/10 3 G Fry G Clarke 30/4/10 2 K Soane G Clarke 26/3/10 1 D Fisher G Clarke 1/3/10 Lynnfield House, Church Street , Altrincham, Cheshire, WA14 4DZ Telephone: 0161 927 8200 Website: http://www.aecom.com Job No 60145249 Reference 614 Date Created May 10th This document is confidential and the copyright of AECOM Limited. Any unauthorised reproduction or usage by any person other than the addressee is strictly prohibited. document8 Table of Contents 1 Introduction ....................................................................................................................................................................... 4 1.1 Introduction to the study ........................................................................................................................................ 4 1.2 Study Area ............................................................................................................................................................. 4 1.3 Aims of the Study................................................................................................................................................... 5 1.4 Background to the Strategic Distribution Sector .................................................................................................... 5 1.5 Contents of this Report .......................................................................................................................................... 7 2 An Introduction to Rail Freight Terminals .................................................................................................................... 10 2.1 An introduction to Rail Freight Terminals ............................................................................................................. 10 2.2 Growth Factors Driving Increased Rail Freight Movements ................................................................................. 10 2.3 Rail Freight .......................................................................................................................................................... 11 2.4 Rail Freight Interchanges ..................................................................................................................................... 12 2.5 Environmental Issues .......................................................................................................................................... 14 2.6 Operational Issues ............................................................................................................................................... 14 2.7 Rail Freight Policy ................................................................................................................................................ 14 2.8 East Midlands Specific Rail Freight Terminal Policy ............................................................................................ 16 3 Policy Review .................................................................................................................................................................. 18 3.1 Introduction .......................................................................................................................................................... 18 3.2 National Policy Context ........................................................................................................................................ 19 3.3 Regional Policy Context ....................................................................................................................................... 20 4 Demand ............................................................................................................................................................................ 26 4.1 Introduction .......................................................................................................................................................... 26 4.2 Effects of Globalisation on the UK’s Supply Chain .............................................................................................. 26 4.3 Changes in UK Logistics Networks ...................................................................................................................... 30 4.4 Demand for Distribution Sites/Warehouses ......................................................................................................... 32 4.5 Demand for Rail Freight in the UK ....................................................................................................................... 32 4.6 FTA/ Rail Freight Group Forecast ........................................................................................................................ 34 4.7 Rail Freight Terminals .......................................................................................................................................... 35 4.8 Review of Neighbouring Sites and Proposed Sites for Comparison .................................................................... 36 4.9 Criteria for Choosing Sites for Development ........................................................................................................ 38 4.10 Rail Freight Services ............................................................................................................................................ 39 4.11 Location - Rail Infrastructure Improvements ........................................................................................................ 39 4.12 Transport Infrastructure ....................................................................................................................................... 40 4.13 The Needs of Customers ..................................................................................................................................... 40 4.14 Labour Supply ..................................................................................................................................................... 41 4.15 Warehousing Employment Creation .................................................................................................................... 41 4.16 Cost ..................................................................................................................................................................... 42 4.17 Grants and Incentives .......................................................................................................................................... 42 4.18 Size ...................................................................................................................................................................... 42 4.19 Availability/Timescale .......................................................................................................................................... 42 4.20 Deliverability/Developer Interest .......................................................................................................................... 42 5 Methodology .................................................................................................................................................................... 44 5.1 Introduction .......................................................................................................................................................... 44 5.2 Stage One – Go / No Go ..................................................................................................................................... 44 5.3 Stage Two – Grading ........................................................................................................................................... 44 5.4 Rail Access .......................................................................................................................................................... 45 5.5 Road Access ....................................................................................................................................................... 46 5.6 Physical Site Description ..................................................................................................................................... 48 5.7 Site Deliverability ................................................................................................................................................. 49 5.8 Contribution to Regional Growth .......................................................................................................................... 51 5.9 Commuting .......................................................................................................................................................... 53 5.10 Demand ............................................................................................................................................................... 54 5.11 Cost ....................................................................................................................................................................