CONTENTS

politics first | Corridors
The critical need to preserve
and strengthen UK ports
Louise Ellman, Chair of the Transport Select Committee and Labour
and Co-operative MP for Liverpool, Riverside
The UK’s 120 commercial ports are the principal
connection to international markets, facilitating 95 per
cent of trade, including 40 per cent of all our food and
25 per cent of all energy.
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The UK ports industry is the second
largest in Europe, handling more than 500
million tonnes of freight, as well as over 60
million passenger journeys annually. It is
fundamental to economic growth, making a
direct contribution of £7.7 billion to GDP in
2013 and paying out £2 billion in taxes into
the exchequer. The ports industry is directly
made up of at least 6,600 businesses and
employs at least 118,000 people and
indirectly contributes to 344,000 jobs, equal
to 1 in every 94 jobs in the UK.
Annual investment in the industry
remains robust at £400 million a year and
its productivity continues to outperform the
rest of the UK economy, with ports industry
workers 1.3 times more productive than the
UK average.
While the ports industry is in a strong
position and has a long, illustrious history, it
would be remiss to ignore the challenges and
opportunities which confront the industry.
As almost half of the UK’s exports (45 per
cent) and imports (53 per cent) are with the
European Union, the recent referendum result
has generated considerable uncertainty,
particularly regarding our future trading
relationship with Europe and access to the
tariff-free common market.
It is vital to pursue continuing European
trade. With seaborne trade projected to
double by 2030, it is also important to
develop new trading relationships with other
major economies such as China and India.
The ports industry could provide the gateway.
Despite the vote to leave the EU, there
is continued uncertainty regarding the
controversial EU Port Service Regulation
which, by coincidence, was agreed to in
Brussels on the Monday following the
referendum result.
The UK Major Ports Group and the British
Ports Association had urged MEPs to reject
the European Commission’s Port Services
Regulation proposal. That was on the basis
that such regulation would prevent privatelyfinanced
ports operating as fully commercial
businesses, particularly with respect to the
ability to set their own port charges.
The long-term application of that
regulation in the UK will depend on the future
relationship negotiated with the EU and, at
this stage, it is impossible to predict how it
will unfold.
In any case, the provision of sufficient sea
port capacity will be an essential element in
ensuring trade and subsequent growth in the
UK economy. Given that 75 per cent of the UK
ports are privately-owned, much of this will
be facilitated through private investment, as
was the case at Felixstowe and Southampton.
There is a clear link between the strength
of the local and strategic transport network
and the ability of ports to prosper. The
Government has a role in facilitating port
development and associated transport
infrastructure to enable goods to reach their
final destination speedily. It is vital that
that the regional aspects are recognised.
Liverpool 2, Peel Ports’ new deep water port,
is ready to bring major vessels from the Far
East to the North of England - this has the
potential to transform the northern economy.
The Northern Freight and Logistics Strategy
should facilitate that.
The National Policy Statement for
Ports, developed in 2012, improved the
planning process for port developments.
The newly formed National Infrastructure
Commission will, hopefully, also create new
opportunities, by improving links to rail and
road infrastructure. It remains to be seen how
effective those developments will be.
It is, however, sobering to look at the
scale of recent investment in UK motorway
networks, particularly when compared
with France and Germany. The number of
motorway miles constructed since 2000 in
France and Germany is 850 and 680 miles,
respectively. The figure for the UK is 46
miles.
There is immense potential in the UK ports
industry, not only to consolidate its position
as a powerhouse but to grow even further
as new trade opportunities emerge. For that
potential to be harnessed, it is critical that the
Government supports the maritime sector,
working with the industry.