Success in the logistics sector is entirely dependent on the ability to transport goods with efficiency of time and cost. The logistics sector is developing fast and businesses and infrastructure need to react in advance of changes to remain competitive.
At a time when the road freight industry faces issues of rising congestion levels and fuel costs, Northamptonshire is implementing the necessary infrastructure to support the logistics sector of the future, developing ways of reducing the cost and carbon output of logistical activities in the county.
Shift From Road to Rail
Congestion costs set back UK businesses a predicted £17billion yearly, which will increase further with another fuel duty rise proposed for January 2012. Road traffic is also projected to increase by 40% within the next ten years.
One solution to parry these rising costs and lessen the load on the road network (figuratively and literally) is to transfer some freight from road to rail; Network Rail estimates that a gallon of fuel will move a tonne of goods 88 miles by road, compared to 246 miles by rail, and just one freight train takes 60 HGVs off the road. In addition, Rail freight contributes £870million to the UK economy annually, and supports economic output of £5.9 billion.
These are persuasive figures, driving companies to change their business structure from road to rail, as shown by the 60% increase in rail freight traffic since the mid 90’s. Network Rail estimates a further 30% growth by 2020, increasing to 140% by 2040. Many major retail brands are using rail transport to deliver goods, and railways now move 12% of all UK goods traffic.
In line with these trends, Northamptonshire is developing new rail freight facilities to increase efficiency and reduce carbon emissions. Several rail freight terminals already exist in the county, including DIRFT in Daventry, Corby EuroHub, and CIRFT in Corby. These terminals are attracting jobs and investment into the county, with, for example, Tesco’s major distribution centre at DIRFT. The county possesses great potential for further rail freight development, with several projects planned for the near future.
Northamptonshire Green Logistics
DIRFT II (Daventry International Rail Freight Terminal) is a specialist, purpose-built facility with the latest green technology, developed by Prologis. In total, nearly seven million sq ft of distribution space has been constructed by Prologis in Northamptonshire, creating 8,000 jobs.
“Northamptonshire is an ideal distribution location for many of our customers from large multi-nationals to smaller local firms”, said Robin Woodbridge, Senior Vice President, Prologis, “We are supporting a number of initiatives within the county and with the launch of the new rail connected Tesco facility at DIRFT II, we are delighted that Northamptonshire is emerging as a pioneer in sustainable distribution."
In July 2011, Tesco launched their new 817,000 sq ft distribution centre at the DIRFT II site – equivalent to the size of nine Wembley football pitches. With its own dedicated rail terminal, the centre is accessible via both road and rail, and is able to receive up to eight trains a day, cutting 100,000 lorry journeys each year, equating to fourteen million road miles and 19,600 tonnes of carbon emissions.
The new Tesco facility has also been designed to be as green as possible, with two wind turbines allowing businesses to use renewable energy to cut costs. Any unavoidable carbon emissions are offset by 110% through investment in Avoided Deforestation Partners (ADP). The facility is a precedent for future logistics centres, and new distribution centres are now being built with the same low carbon approach, many of which are exploring the possibilities of greener technologies.
Sainsbury’s has also opened an important eco-friendly logistics site in Northamptonshire, located in Pineham. This site is one of the greenest distribution centres in the world, using progressive technologies such as rainwater harvesting and water recycling, saving an average of 40 million litres of water a year. The site also has solar panels and solar walls, energy efficient lighting, on-site recycling, and an on-site power plan that recycles heat produced by air conditioning.
Developments like the Sainsbury’s and Tesco’s innovative sites are pioneering low carbon logistics, and driving Northamptonshire to the forefront of the industry.
For more information about doing business in Northamptonshire, please see their pages.
Further information on Northamptonshire’s logistics industry
Located centrally on England’s motorway network, and within an hour’s drive of five international airports, Northamptonshire’s logistics cluster evolved organically. In an effort to stay at the forefront of the industry, the county council is developing its logistics sector with green distribution centres, and dedicated educational facilities, such as the Centre of Vocational Excellence in Logistics. These measures are attracting investment in newer technologies, which are driving the county’s logistics industry into greener territory.
