LCR Freight and Logistics Strategy Strategy Report January 2017 Merseytravel LCR Freight and Logistics Strategy 369384 ITD 8 B P:\Liverpool\ITD\Projects\369384 LCR Freight Strategy\8. Strategy\Rev B Final\LCR Freight and Logistics Strategy - Rev B_FINAL.docx January 2017 Strategy Report LCR Freight and Logistics Strategy Strategy Report January 2017 Merseytravel Mann Island, Liverpool Mott MacDonald, 9th Floor, Royal Liver Building, Pier Head, Liverpool L3 1JH, United Kingdom T +44 (0)151 482 9910 F +44 (0)151 236 2985 W www.mottmac.com LCR Freight and Logistics Strategy Strategy Report Issue and revision record Revision Date Originator Checker Approver Description A October 2016 Florian Langstraat Leanne Farrow / Unapproved draft for client Chris Rowland comment B January 2017 Florian Langstraat Leanne Farrow Richard Brown / Final Chris Rowland Information class: Standard This document is issued for the party which commissioned it We accept no responsibility for the consequences of this and for specific purposes connected with the above-captioned document being relied upon by any other party, or being used project only. It should not be relied upon by any other party or for any other purpose, or containing any error or omission used for any other purpose. which is due to an error or omission in data supplied to us by other parties. This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it. 369384/ITD//8/B January 2017 P:\Liverpool\ITD\Projects\369384 LCR Freight Strategy\8. Strategy\Rev B Final\LCR Freight and Logistics Strategy - Rev B_FINAL.docx Contents Chapter Title Page 1 Introduction 1 1.1 A forward thinking Strategy for the LCR __________________________________________________ 1 1.2 Strategy development________________________________________________________________ 1 1.3 Recommendations __________________________________________________________________ 1 1.4 Potential benefits for the LCR __________________________________________________________ 2 1.5 Structure of this Strategy _____________________________________________________________ 2 2 Strategy context and focus 4 2.1 Strategy context ____________________________________________________________________ 4 2.2 Strategy focus _____________________________________________________________________ 6 3 Current freight context 7 3.1 Introduction ________________________________________________________________________ 7 3.2 Road freight _______________________________________________________________________ 7 3.3 Rail freight _______________________________________________________________________ 11 3.4 Ports ____________________________________________________________________________ 12 3.5 Warehousing _____________________________________________________________________ 13 3.6 Air freight ________________________________________________________________________ 13 4 Future freight demand in the LCR 14 4.1 Overview of freight forecasting ________________________________________________________ 14 4.2 Developing assumptions for modelling __________________________________________________ 14 4.3 Road versus rail ___________________________________________________________________ 15 4.4 Key issues emerging from the forecasting _______________________________________________ 18 4.5 Potential benefits for the LCR _________________________________________________________ 18 5 Transport network impacts 20 5.1 Road ____________________________________________________________________________ 20 5.2 Rail _____________________________________________________________________________ 22 6 The future business environment 27 6.1 Key socio-economic trends in the LCR: why change the status quo? __________________________ 27 6.2 Future of industrial activity ___________________________________________________________ 30 6.3 The urban logistics policy toolkit _______________________________________________________ 32 6.4 Future use of technology ____________________________________________________________ 33 6.5 Skills and training __________________________________________________________________ 35 6.6 Implications of Brexit _______________________________________________________________ 36 7 Harnessing opportunities 38 7.1 Strengths ________________________________________________________________________ 39 369384/ITD//8/B January 2017 P:\Liverpool\ITD\Projects\369384 LCR Freight Strategy\8. Strategy\Rev B Final\LCR Freight and Logistics Strategy - Rev B_FINAL.docx 7.2 Weaknesses ______________________________________________________________________ 39 7.3 Opportunities _____________________________________________________________________ 39 7.4 Threats __________________________________________________________________________ 40 8 Strategy interventions 42 8.1 The need for a freight and logistics intervention plan _______________________________________ 42 8.2 The strategic freight and logistics interventions: 8 ‘packages’ ________________________________ 42 8.3 Overview ________________________________________________________________________ 56 9 Strategy delivery 57 9.1 Strategy delivery plan _______________________________________________________________ 57 9.2 Next steps _______________________________________________________________________ 61 Appendices 62 Appendix A. Calculation of non-user and user benefits _______________________________________________ 63 A.1 Non-user benefits __________________________________________________________________ 63 A.2 User benefits _____________________________________________________________________ 63 369384/ITD//8/B January 2017 P:\Liverpool\ITD\Projects\369384 LCR Freight Strategy\8. Strategy\Rev B Final\LCR Freight and Logistics Strategy - Rev B_FINAL.docx LCR Freight and Logistics Strategy Strategy Report 1 Introduction 1.1 A forward thinking Strategy for the LCR This Strategy demonstrates how the Liverpool City Region (LCR) can harness the strengths of the freight and logistics sector to better achieve the aspirations outlined in its new Growth Strategy “Building Our Future”1 – namely to help to deliver 100,000 new jobs, 20,000 new businesses and more than £20bn of additional Gross Value Added (GVA) in the City Region by 2040. The Strategy also aligns with the Transport for the North (TfN) Freight and Logistics Report, which provides the key freight and logistics components for realising the vision for a Northern Powerhouse. The LCR Freight and Logistics Strategy aims: To ensure the freight and logistics sector maximises its contribution towards achieving the economic development aspirations for the LCR, including creating additional GVA and employment opportunities; To minimise, as far as possible, the environmental and social impacts of freight and logistics activities on local communities and business in the LCR, and enhance the quality of life for residents. 1.2 Strategy development This Strategy has been developed by Mott MacDonald and MDS Transmodal on behalf of Merseytravel and its partners, including the Local Enterprise Partnership (LEP). A Steering Group has directed and overseen the work undertaken by the consultancy team during the Strategy’s development. The private sector has been consulted during the development of the Strategy through interviews with a range of key freight and logistics businesses as well as education and training providers in the LCR2. 1.3 Recommendations This Strategy presents eight packages of interventions. Taken together, these will act as a long-term guide for public and private sector partnership and investment, to capitalise on the region’s existing strengths and help to realise the ambitions of the new Growth Strategy. See Table 1.1 for a summary of the packages and expected outcomes. Table 1.1: Strategy packages Package Delivery of outcomes 1. Multi-modal Distribution Parks Development of MDPs to improve efficiencies and capacities of distribution; signal (MDPs) and supporting of strong support from public sector for the industry. infrastructure 2. Urban logistics policy measures Reduced number of heavily polluting HGVs in Liverpool City Centre to deliver environmental and social benefits and render urban centres more commercially attractive. 3. Port facilities Expansion of throughput capacity at LCR port terminals by the private sector to render LCR a more cost effective location for the freight industry. 1 Published in June 2016 by the LCR LEP 2 Please refer to Technical Annex: Project Summary for further detail of the key stages in which the Strategy was developed. 1 369384/ITD//8/B January 2017 P:\Liverpool\ITD\Projects\369384 LCR Freight Strategy\8. Strategy\Rev B Final\LCR Freight and Logistics Strategy - Rev B_FINAL.docx LCR Freight and Logistics Strategy Strategy Report Package Delivery of outcomes 4. Improved access to Port of Facilitate access to the port to generate efficiency gains and facilitate better use of Liverpool rail to access the port, thus encouraging greater economic activity 5. Rail network capacity (both east- Additional rail freight services to allow an increase in volume of freight moved by west and north-south) rail to and from the LCR and provide greater access to key destinations around the UK via the rail network 6. Freight specific highways Improved access to a potential development sites and reduced environmental and interventions social impacts from HGVs 7. Other access improvements Increased private sector activity