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Chapter 2
Vision, Aims, Objectives and Actions
Vision
Working in partnership with business and industry, our vision is for Scotland to be a place where the movement of freight through the entire supply chain is efficient and sustainable, on a transport infrastructure that is integrated and flexible - thus allowing Scotland's businesses to compete and grow in a global economy.
Aims and objectives
To achieve this vision, and taking into account the key trends and issues identified in the Scoping Study, the Freight Action Plan will focus on the following aims and objectives. They are for all key partners in the public and private sectors.
To enhance Scotland's Competitiveness:
- Balancing freight and non-freight requirements in transport investment
- Minimising the negative impact of rising transport costs
- Continued business developments in the freight and logistics sector
Safe and Fuel Efficient Driving For the past year the Scottish Executive has been funding a demonstration HGV driver training project that teaches safe and fuel efficient driving techniques ( SAFED): - The average MPG improvement for drivers who have had SAFED training to date is 10.2%
- If this were maintained for a whole year, the programme would save the industry 2,329,883 litres of fuel
- This can be extrapolated to £2,096,895 in cost savings
- The average potential cost saving per driver, from these figures, is £2,184 per year
- Additionally, the C0 2 savings due to the SAFED programme would amount to 6,244,086 kg and carbon savings would be 1,689,165 kg
- There are 72 SAFED instructors throughout Scotland available to provide training
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To support the development of the freight Industry in Scotland:
- Enhancing the skills and professional image in freight and logistics
- Enabling the Scottish freight industry to compete effectively in the European market
To maintain and improve the Accessibility of rural and remote areas:
- Targeting improvements to road and rail infrastructure
- Integrating freight considerations into the provision of lifeline ferry and air services
- Addressing the transport needs of rural businesses and industry
To minimise the adverse impact of freight movements on the Environment in particular through the reduction in emissions and noise:
- Promoting modal shift to rail and shipping
- Improving efficiency and sustainability of road transport
To ensure freight transport policy Integration:
- Co-ordinating with other policy areas - such as energy policy, land use, waste disposal, and regional transport strategies - and between public agencies
- Co-ordinating freight policy with other UK regions
Actions
Enhancing competitiveness:
1. Transport Scotland will undertake a Strategic Transport Projects Review ( STPR) to be completed by 2008. This will identify a programme of transport interventions for the period 2012 to 2022. It will identify the needs across the national transport network including addressing the freight transport requirements of urban, rural and remote communities.
2. The Scottish government and Enterprise Networks will engage with business, industry, the ports sector and other key stakeholders to determine the need for and location of multi-modal freight hubs, taking account of the strategic economic importance of ports in providing access to international markets.
3. The trunk road network will remain the predominant mode for carrying freight into the foreseeable future. Congestion in the network will be addressed by:
- Completing the motorway network, by infilling the existing gaps in the M74 in Glasgow, and in the M8 and M80
- Providing a bypass of Aberdeen to reduce congestion in the city and to ease access to and from markets in the south
- Continuing to improve the long distance single carriageway network by providing unambiguous overtaking opportunities as part of a Route Action Plan on the A68, A7, A75, A76, A77, A82, A9, A96 and A985
- Maintaining the network so that it continues to be capable of carrying the heavy goods vehicle fleet safely
- Transport Scotland will examine the benefits of giving priority to certain users, including freight, of the trunk road network on key parts of the network suffering from congestion. Priority may not be given to users where a viable alternative mode exists
Freight Scotland The Scottish government is at the forefront of the use of Intelligent Transport Systems to help deliver efficiencies in operating the trunk road network - as demonstrated by its development of the Traffic Scotland service over the last decade. In relation to the freight sector, the Executive and Transport Scotland have recently developed Freight Scotland ( www.freightscotland.org) - a web portal to complement Traffic Scotland which provides specific information of relevance to the freight industry. Such data sets include location of lorry parking, port and railheads, road restrictions, and industrial estates. This has been developed with the help of the Road Haulage Association and the Freight Transport Association, and continued feedback from these organisations and their members will be used to improve the services offered. |
4. Transport Scotland will work with the rail industry to ensure that best use is made of existing infrastructure, and that rail freight growth is not constrained by restricted access to network capacity. It will do this by, e.g:
- Delivering the Stirling - Alloa - Kincardine line. This £65-70 million investment delivers 21km of new railway and provides a more efficient route for the transportation of coal. It will also deliver benefits to passengers by freeing up capacity across the Forth Bridge
- Delivering the Mossend - Elgin Freight Loading Gauge Enhancement. This £4 million project will allow larger freight containers (9'6") to be carried by rail ensuring that existing rail freight traffic is kept off roads
- Working in partnership with businesses and the rail industry, between now and 2009, considering the feasibility and affordability of enhancing capacity on the Glasgow and South Western route to assist freight movements
5. Transport Scotland will continue to work with the freight industry to ensure that investment in road and rail links to key ports is targeted to support the needs of the freight industry.
6. The Scottish government will ensure that the benefits of freight to the long term sustainability of air routes is examined in the further expansion of Scotland's air network.
7. Business and the freight industry should collaborate to identify opportunities to develop consolidation centres, benefit from trade imbalances, and develop networks such as ELUPEG to consolidate loads and reduce empty running.
Collaborative initiatives in logistics New organisations have been set up to promote logistical collaboration. The largest is the European Logistics Users, Providers and Enablers Group ( ELUPEG) which now comprises around 280 manufacturers, retailers and logistics service companies from all over Europe ( www.elupeg.com). Members of this group have successfully implemented collaborative initiatives. For example, Unilever and Kimberley-Clark now channel products for the Dutch retail market through a shared distribution centre in Raamsdonksveer, operated for them by the logistics company, Kuehne and Nagel. As a result, the companies have cut their logistics costs by 12-15% while responding to retailers' demands for faster and more frequent deliveries. A similar scheme, called Logistics XP, is being fostered by IntertradeIreland to demonstrate where opportunities exist for collaboration between participating companies in Eire that will reduce distribution and supply chain costs and improve both customer service and competitive advantage for the project partners ( www.intertradeireland.com/index.cfm/area/information/page/Logistics%20XP). In an initial pilot project, eight companies achieved savings of between 5 and 20% in their distribution costs. An IT-based matching engine is used to analyse the pattern of freight flows and identify collaborative opportunities. In the United States, many companies are participating in collaborative transportation management. This encourages greater collaboration and information-sharing between manufacturers, retailers and carriers. By involving transport companies more closely in the distribution process and giving them more advanced warning of freight requirements, it has increased the efficiency of some regional truck fleets in the US by between 10 and 42%, mainly as a result of improved backloading. |
Reserved Policy Areas Certain key areas impacting on freight transport, such as drivers' hours, speed limits, working time and cabotage, 2 and their enforcement, are reserved. In addition, these reserved areas are often covered by European legislation and the scope for change by individual member states is limited. However, the Scottish Executive continues to liaise closely with the Department for Transport ( DfT) and other UK Departments to ensure that the impact of reserved policy areas on Scotland, the Scottish freight transport industry and its employees is properly understood. In some reserved areas, Scottish Ministers can and have taken action within devolved powers to offset their impact such as introducing the Safe and Fuel Efficient Driving Scheme for HGV drivers. In relation to the planned review by DfT of the UK's implementation of the European Road Transport Working Time Directive, Executive officials will be participating in work to ensure that the evidence base for the review, is appropriate. On industry concerns about unfair competition from foreign hauliers, the Road Haulage Association and the Freight Transport Association are both part of the Haulage Industry Task Group set up by the DfT and HM Treasury. While available statistics suggest cabotage levels are low throughout the UK, localised impacts may be more significant. The Executive will work with the RHA and FTA to provide input on the issues in Scotland into the DfT and HM Treasury. |
Supporting the development of the freight industry:
8. Skills for Logistics (the sector skills council) will work with industry to identify future skills needs and encourage appropriate levels of training and recruitment in response to current and projected industry demand.
9. The freight industry needs to take action to improve the image of the industry through e.g. greater training opportunities, career development and marketing of services.
10. The Scottish government has issued guidance on establishing Freight Quality Partnerships ( FQPs). In partnership with the freight industry, we will monitor the number and effectiveness of FQPs at delivering freight solutions at a local level, on issues such as night-time curfews, no car lanes, drivers' rest areas and local bridge and road strengthening. We will provide a progress report that will highlight best practice by 2009.
11. We will continue to liaise closely with the Department for Transport on reserved freight transport issues which particularly impact on Scotland, such as the Working Time (Road Transport) Directive and lorry speed limits. We will also work with the UK Government on measures aimed at levelling the playing field for Scottish road hauliers such as fuel and vehicle taxation and UK-wide road user charging.
Maintaining and improving accessibility:
12. In its review of lifeline ferry services in the Highlands and Islands, the Scottish government - in partnership with Regional Transport Partnerships - will take full account of the freight requirements of businesses and communities. This will lead to targeted service enhancements and revised fare structures within the next tender period.
13. Highlands and Islands Enterprise and Highlands and Islands Transport Partnership will evaluate the provision of bulk freight shipping services in the Highlands and Islands by April 2007. The evaluation will identify possible actions for inclusion in the regional transport strategy.
14. The Scottish government, RTPs and Local Authorities will work with the forestry industry on transport links to ensure maturing timber can be harvested. Financial support for projects will be made available through Freight Facilities Grants, Waterborne Freight Grants and the Strategic Timber Transport Fund.
Minimising impact of freight on the environment including reducing emissions:
15. The Scottish government will:
- Continue to develop existing incentives, such as Freight Facilities Grants and Waterborne Freight Grants to promote innovative solutions to moving freight by rail and sea
- Provide additional help to Small and Medium sized Enterprises ( SMEs) seeking freight grants
16. The Scottish government will continue to work with partners in the road haulage sector, such as the Freight Transport Association and Road Haulage Association, to:
- Embed Safe and Fuel Efficient Driving ( SAFED) skills for HGV drivers within the industry
- Develop SAFED training for van drivers by the end of 2007
Current modal shift and fuel efficiency initiatives The Scottish government's Freight Facilities Grant ( FFG) scheme contributes to the capital costs of equipment and facilities for rail, inland waterway and sea freight where the traffic would otherwise use road and where there is an environmental benefit from the use of these alternative modes. Twenty nine FFGs have been awarded since 1999, totalling £63 million - taking 76 million lorry miles off the roads. FFG support in Scotland has a £41 million budget for 2005-08. Scotland led the way in the UK with the introduction of the Waterborne Freight Grant ( WFG) scheme in 2005. Up to £1.4 million of grant support is available to assist the development of individual shipping routes during their first 3 years of operation, where freight is transferred from road to water. The awards so far include the Rosyth to Zeebrugge ferry service and a trial on the Caledonian Canal. The Scottish government are also supporting Sea and Water, an independent shipping and inland waterway organisation which has been tasked with identifying potential new water freight routes in and around Scotland. The Track Access Grant ( TAG) offers support to offset charges on the rail network where rail cannot compete commercially with road. So far grant awards totaling £9 million have been made in Scotland since 1999. The Company Neutral Revenue Support ( CNRS) scheme provides revenue assistance for intermodal freight by rail, such as containers to and from sea ports, and inland rail terminals, again on routes where rail cannot compete with road. |
Recent modal shift awards On the long hauls between England and Scotland, a recent initiative by the road operator Eddie Stobart transports Tesco containers between Daventry and Grangemouth by rail instead of road. Some 260 lorry journeys a week have been cut from Scotland's busy road network in this joint venture between Eddie Stobart Ltd. and Tesco. It took only 9 weeks from application to approval of the FFG support for this project. Efforts have also been made to move lorries off Central Scotland's roads. Recent FFG funding has enabled haulier WH Malcolm to re-develop a rail freight facility at Elderslie. This includes container handling and new storage facilities which make it possible to run a daily short haul rail service between Grangemouth docks and Elderslie. The operator will also use these facilities to transport plasterboard from Cumbria by rail. These are just two among many recent examples in Scotland. |
Integrating road and rail into inter-modal business operations Frieght grant support has helped many previously road based operators such as John G Russell (Transport) and ARR Craib Transport Ltd, as well as WH Malcolm Ltd and Eddie Stobart Ltd to start incorporating rail into the logistical systems of their clients. Railfreight operators also recognise that efficient and reliable road feeder movements are fundamental to the future development of their business. Close integration of road and rail will be essential, if they are to capture and retain more high value traffic, such as food and drink, chemical products and parcels. Increased rail penetration of the expanding timber market in Scotland will also require close coordination of road and rail operations. (For more information on freight grant schemes, see: www.scotland.gov.uk/Topics/Transport/FT/freightgrants1) |
Ensuring policy integration:
17. The Scottish Executive and the Enterprise Bodies will work with other public sector bodies and industry to develop freight information that can be used to inform future freight policy and services.
18. We will revise the Scottish Transport Appraisal Guidance ( STAG) to ensure that its application in respect of freight movements is easily understood. This review of STAG will start in Autumn 2006 and will be completed by June 2007.
19. The Scottish government will ensure that sustainable freight transport considerations are fully integrated in the development of other policy areas such as land use, economic development, recycling and waste disposal.
20. The Scottish government will involve both industry and public body representatives in monitoring and guiding the implementation of the Freight Action Plan.
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