Introduction
Economic growth is an urgent imperative for Britain. Whilst generating growth is a complex and multi-faceted issue, involving inter alia fiscal stimuli and the encouragement of innovation, it is inescapable that higher productivity and improved trade links are key contributory factors. The importance of freight and logistics as a driver of these key factors is often overlooked and this paper sets out how the sector can be exploited to achieve desired outcomes. Our submission is based upon the collective practical expertise of the Chartered Institute of Logistics and Transport (CILT), the leading professional Institute for this sector.
Logistics and transport is an entirely private sector activity and one in which the UK is an acknowledged world leader. Considerable institutional investment from UK and overseas funds has been, and continues to be, made in the sector. It is highly competitive and this drives innovation and productivity, as operators strive to increase efficiency and margins. Alongside efficiency and price, customers are now also driving sustainability in freight and logistics as a key element of decarbonising their supply chains.
Although the sector is a private sector activity and provides a significant element of its own infrastructure, such as ports, intermodal terminals and warehousing, it is dependent on public sector infrastructure for its road and rail operations. There are clear deficiencies in these infrastructure systems which impede productivity and trade connectivity.
At a time of financial stringency, it is critical that maximum value is derived from scarce public resources, so a fresh and clear approach to infrastructure enhancements is required. We, therefore, welcome the review of the capital budget for transport. As well as delivering the maximum economic benefits as quickly as possible, transport infrastructure enhancements of the right kind can also offer improvements and gains that assist other policy areas, notably productivity, trade links and uneven regional economic performance.